Steamship Mutual Financial Update and 2020 Renewal

October 2019

SJMC1

At Steamship Mutual’s Board Meeting on 22 October 2019, the Directors reviewed the Club’s financial position and decided on the policy for the forthcoming February 2020 renewal.

During the Board Meeting a number of developments were reported:

  • The entered gross tonnage increased by 2.4m tons in the current year to September with current year claims and Pool claims at higher levels than in preceding years.  Overall prior year claims are developing favourably; however, the current year combined ratio is projected to exceed 100%.
  • At the 2020/21 renewal there will be a 7.5% general increase, and an uplift of US$ 2,000 in lower level deductibles.  For many Members the increase in their mutual P&I rating will be matched, or broadly matched, by the capital distribution. Deductibles at lower levels will also increase moderately, and this is expected to improve records and promote reasonable levels of risk retention.
  • There has been no general increase in premium ratings for 5 years, and the 2020/21 year will be the fourth in succession when funds have been distributed to Members.  The Bermuda Club’s capital distribution to Members will be 7.5% of 2019/20 mutual P&I premium for renewing vessels, which amounts to approximately US$ 17 million.
  • Standard & Poor’s recently reaffirmed the Club’s A (stable) rating with the Club’s capital being expected to remain comfortably above the AAA requirement, allowing for the capital distribution.

Stephen Martin, Executive Chairman commented:

"The Circular L.335 lays out the present position of the Club and I am pleased to be able to report in positive terms.

I am delighted that with our continuing financial strength we have been able to dispense with general increases for five consecutive years and order the distribution of capital in four. The Directors continue to be committed to supporting Members as and when the Club is in a position to do so.

This year has seen continuing upward pressure in claims, an experience also reported by other International Group Clubs. Steamship’s Board is committed to restoring underwriting balance without imposing an unnecessary burden upon the membership. Altogether, an advantageous position for the Club’s Members and one that we hope will assist many of them, at a time when market conditions are still unsettled and challenging.

We have experienced positive growth in the year to date and we are grateful as always for the confidence and loyalty of our Club Members. We are in a strong position for the upcoming renewal and look forward to serving Members in 2020".

***ENDS***

Note to Editors: Additional photography and comments are available upon request.

For further details relating to the Club’s key statistics, financial highlights and updates concerning underwriting, reinsurance, claims, safety and loss prevention, please see Steamship Mutual’s 2019 Management Highlights, which can be accessed here.