The Shipowners Mutual Protection & Indemnity Insurance Association (Luxembourg)
Managers – The Shipowners’ Protection Ltd
Standard & Poor’s Rating A
Shipowners’ Club reported a “satisfactory” set of results for the 2019 calendar year, said broker Tysers in its annual marine liability report on the P&I Clubs and fixed premium operations.
The combined ratio of 105% was the second year running that the Club had reported a technical loss – $10.3m for 2019 and $8.2m in 2018, but Shipowners’ Club said that this was in line with budget.
An “excellent” investment return of 9% brought in $46.4m net of tax, helping free reserves to rise by $36m, thus recovering nearly all the 2018 losses.
Approaching 80% of the Club’s funds are invested in fixed income instruments.
Entered tonnage remained stable at just over 27m gt, with the Club enjoying a member retention rate of 98%. Growth was seen mainly in the passenger, yacht and fishing sectors.
Tysers observed that, as the fixed market offerings continue to dwindle, the Club reported that, for the first time, competition now came more from other Clubs in the International Group.
Tysers said that the Club did not appear too concerned about this, citing the fact it has been insuring small vessels for 160 years and so knew what it was doing when it came to claims and to administering a portfolio of nearly 8,000 members and more than 33,000 vessels.
The Club was now insuring a small but growing number of autonomous vessels, operating mainly in inshore/ offshore survey and fishery research. The Club had noted that these vessels were generally very small, but the Club felt that larger and more mainstream applications were not far away.
Tysers said that Shipowners’ was at the forefront of this emerging sector, working with industry experts to ensure it fully understood the related liabilities and provided the comprehensive cover required.
Net incurred claims in 2019 were up just over $5m at $156m and earned premium net of reinsurance rose by a similar amount to $200m. Although the Club did not note any particular claims trend, it did see “convention creep” pushing up claim values.
During the year the Club celebrated 10 years of its Singapore branch, which now employs over 40 staff to help service its substantial Asian book, and also opened a service office in Greece.
Vessel Type By Number
|Net Claims (incurred)||156,491||151,038||136,165||149,087||136,060|
|Net Underwriting Result||(10,273)||(8,197)||1,761||2,802||3,247|
|Gross Outstanding Claims||464,442||440,348||425,420||433,441||474,576|
|Average Expense Ratio||23%||24%||22%||22%||21%|
* 2016 covers the shortened period of 20th February 2015 to 31st December 2015
All figures $’000