At the Board Meeting held in Houston on 24 October 2023, the following developments were reported:
Highlights
- The Club’s own claims for the 2023/24 policy year at six months are less than budgeted
- There were four International Group (IG) Pool claims which were reported by other Clubs for the 2023/24 policy year and which exceeded Club retention in the period to 20 September
- 2022/23 IG Pool claims remain at low levels relative to recent years
- Prior year claims are developing satisfactorily with reserve releases
- As a result of favourable claims projections, the 2023/24 financial year combined ratio is better than expected at six months
- An investment return of US$33 million achieved for the first seven months
- The Club’s S&P Global (S&P) rating is ‘A’ with a stable outlook
- In the year to 20 October, owned tonnage has increased by 3.6% to 120.6 million 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 US$25 million
“The Club is in a strong position and is benefiting from favourable claims development. The capital position was reviewed by the Directors of the Club and their focus was on how the strength of the Club could benefit the Members. As a Club with a strong mutual ethos the decision to make a capital return is the right approach. Looking forward, the headwinds of inflation and large claims volatility are addressed by the renewal strategy. We are committed to supporting our Members”
Jonathan Andrews, CEO
The Managers are most grateful for the support given to the Club from the Members and their brokers.
Read the full Circular and Club commentary here
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