Steamship plans 5% general increase for 2024/25, 7.5% capital distribution

At its Houston board meeting on October 24th Steamship Mutual reported to its members that

The Club’s own claims for the 2023/24 policy year at six months had been less than budgeted. The Club’s own incurred claims of $47.5m at seven months compared favourably with recent years at the same time and are less than budget;

Up to September 20th there were four International Group Pool claims which were reported by other Clubs for the 2023/24 policy year which exceeded Club retention;

2022/23 IG Pool claims remained at low levels relative to recent years;

Prior year claims were developing satisfactorily with reserve releases. At six months the overall development of the Club’s prior year claims was favourable with a reserve release of $13.3m;

As a result of favourable claims projections, the 2023/24 financial year combined ratio was better than expected at six months;

Investment return for the first seven months of the year was $33m – a return of 2.6%;

In the year to October 20th owned tonnage increased by 3.6% to 120.6m gt;

At the 2024/25 renewal there will be a 5% general increase applied to premium on all classes of business

Subject to regulatory approval, there will be a capital distribution to Members equivalent to

7.5% of the 2023/24 mutual P&I premium for renewing vessels. This amounts to approximately $25m.

After reviewing the development of open policy years and the overall financial position of the Club the Directors decided to reduce the level of release calls, for mutual Class 1 P&I and Class 2 FD&D entries, as follows:

  • 2021/22: 5%
  • 2022/23: 5%
  • 2023/24: 10%
  • 2024/25: 10%