In Tysers’ 2017 report on the International Group Clubs, the broker included a club-by-club analysis, which IMN is covering on a one-club-per-day basis. Today, Japan P&I Club
Tysers said that Japan Club had “a very satisfactory” 2016, with an excellent combined ratio of 84% and an investment return of 2% pushing free reserves above $200m. This equates to $2.28 per owned GT, compared to an International Group average of $4.40, but the Club felt comfortable enough to reduce the final call for 2015 from 40% to 30%, the second successive year of reductions.
Owned tonnage declined slightly from 92.2m to 91.5m with scrapping and sales exceeding new deliveries from existing Members.
Director General Hiroshi Sugiura reported on the progress made during the second year of the Club’s three year Operational Plan “to be a more credible Club”, to be achieved through management strategies on “Reliability”, “Soundness” and “Competitiveness”.
He said that “Reliability” involved enhanced loss prevention and claims handling initiatives. The Club has improved its PEME scheme for Filipino seafarers, held more seminars in Asia and increased the dissemination of information via its website and more regular circulars and bulletins. Sugiura added that the Club held regular internal study workshops and had increased its FDD capability through the employment of an English-qualified lawyer.
“Soundness” related to further work on the Club’s Enterprise Risk Management system, first started in 2015 to monitor the balance between risk and capital.
Sugiura said that “Competitiveness” was being achieved through a nil general increase at the 2017 renewal and a reduction in final calls. He acknowledged that the P&I market was becoming more competitive every year, but felt this would not stop the Club being the one “most in step with Members in the future”.
Finally, the Club said that it aimed to enhance its business activities worldwide, especially in Asia.
Tysers noted that recent efforts to attract non-Japanese shipowners had “met with very little success and we do fear this is unlikely to change, especially with other stronger and A rated clubs increasing their presence throughout Asia.”
However, Tysers concluded, “the Club does deserve some praise for probably being the only one still performing as a true mutual.”
Japan P&I Club results: Summary
All figures $’000
Japan Club tonnage by vessel type
Bulk carriers 59%
Car carriers 9%
Container ships 8%
General Cargo/Other 4%
Japan Club tonnage by registry