The Japan Ship Owners’ Mutual Protection & Indemnity Association.
Standard & Poor’s Rating BBB+
Tonnage By Vessel Type
Tysers observed that “it appears to have been a rather dull financial year for the Japan Club”. Net claims remained stable at $118m and premium was down $11m to $183m. A combined ratio of 113% was partly offset by a small investment surplus. Free reserves fell, in US$ terms, by $2m to just under $236m.
On a policy year basis, Tysers said that 2019 looked poor, with the Club warning that, while the overall number of claims continued to reduce, there had been an increase in serious claims over $1m, with two exceeding $10m and hitting the Pool.
Owned tonnage rose by more than 2m gt to nearly 99m gt, but Tysers said that the increase was less than had been hoped for and that this had prompted the Club to review its products, services and organization.
Chairman Tadaaki Naito reported that 2020 was the start of the Club’s Second Action Plan – 2020 to 2023. This is aimed at becoming more customer friendly, a recovery of its share of the domestic market. and “to obtain good quality contracts in overseas markets”.
Tysers said that this would be difficult, and the broker recommended they focus more on the domestic market, in which Japan Club was facing severe competition from many stronger IG Clubs.
Although 2020 saw the Club celebrating its 70th anniversary, Tysers observed that the Club was going to be very busy dealing with the ramifications of the grounding of the Wakashio, and its subsequent breaking up, causing extensive oil pollution along the Mauritius coastline. Tysers warned that this was “likely to be the Club’s largest ever claim and a serious test of its claims handling abilities”.
|Net Claims (incurred)||118,370||118,734||121,533||122,604||125,416|
|Net Underwriting Result||(7,176)||7,560||14,164||23,949||16,079|
|Gross Outstanding Claims||468,556||435,842||398,057||367,501||371,395|
|Average Expense Ratio||7.42%||6.52%||6.21%||5.46%||5.18%|
All figures $’000