Positive claims development means no increase for Steamship Mutual

Press Release

October 2014

The Steamship Mutual Board of Directors has decided that there will be no general increase in premium for the 2015/16 policy year.

Claims in the current year are now expected to be below budget, and the development of prior year claims has also shown marked improvement over the last 12 months. As a result, free reserves are projected to increase by year end at 20 February 2015 and, even without an increase in general premium ratings at the 2015/16 renewal, the outlook is also positive for that policy year, with further growth in free reserves anticipated.

In these circumstances the Directors concluded that it was unnecessary to impose a general rating increase upon Members; although, as always, records will be individually considered and may be adjusted as necessary to accommodate any particular negative or positive claims experience.

Entered tonnage increased to 116 million GT in the period from 20 February to 20th October, including a number of new Greek Members who will be supported by the Club’s recently established Piraeus office.

Release calls were set at 5% for the 2012/13 policy year, 10% for 2013/14 and 25% for the current year.

Gary Rynsard, CEO of Steamship Insurance Management Services Ltd, said:

“The Directors were pleased to be able to respond positively to the Club’s favourable underwriting performance, when many Members are still experiencing challenging market conditions. The Board did not wish to impose premium increases when continuing improvements in the Club’s financial strength neither justified nor required this measure.

One of the many advantages of mutuality is that the Directors, who are ship owners themselves, understand the expectations of the Members. When cost increases can be avoided without compromising available capital and free reserves, they can decide – as they have for the forthcoming renewal – that there should be no general increase in the cost of P&I cover. This decision sends a positive message not only about the health of the Club itself, but also about the willingness of Club Directors to accommodate and support the Members whenever possible.”

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Notes to editors:

Ebola - Dedicated area relating to the Ebola outbreak is available on the Clubs website.

The Club’s DVD "A Team Effort - 2014/2015 Edition" has been released.

The popular Cargo Conventions Book has been updated and published.

Steamship Mutual is a platinum sponsor of the Nautical Institute’s 2014 Command Series of seminars for which the theme is navigational competence, which are to be held in Sydney, Manila, Limassol, London and Glasgow in 2014. The Club is also supporting the production of Greek and Tagalong versions of the joint Nautical Institute and Royal Institute of Navigation publication “The Navigator”.

The Managers co-operate with Videotel Marine International in the production of video and computer based training programmes. Its recent production “COLREGS & IALA Buoyage Training Course” won Gold at the Horizon Interactive Awards.

For further information contact Carole O'Brien +44 (0)207 650 6512