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“This last renewal season was one of our strongest in recent years, with mutual owned tonnage growing to 120 million gross tons, maintaining our position at the top of the P&I market. This increase reflects the Club’s aim to grow with quality tonnage at the right premium rating. “However, the Board is very conscious of the need to strike a sensible balance between the financial requirements of the Club and the needs of Members, in what is a very weak market for most shipping sectors.” Hugo Wynn-Williams, Chairman of Thomas Miller P&I, the Club’s managers said: “This is a strong set of results but it does not allow for complacency. The combined ratio for the financial year of 104% is within the Club’s tolerances in the short term, taking into account the current elevated claims environment. “The increased claims on the 2012 policy year are a warning that, despite weak global economic growth, claims inflation, particularly in the higher value claims, will continue. It is, therefore, essential to maintain a disciplined approach to underwriting in the coming years to achieve the target of a balanced underwriting result over the claims cycle. “We recognise the economic reality facing ship owners and in addition to our financial strategy, we will continue to help Members reduce their claims exposure through our extensive loss prevention activity.” A combined ratio below 100 per cent indicates an underwriting surplus; a ratio above 100 per cent shows more is being paid out in claims and expenses than is being received in premiums. UK P&I Club The United Kingdom Mutual Steam Ship Assurance Association (Bermuda) Limited is generally known as the UK P&I Club. As a mutual association, the UK Club has no outside shareholders and no financial links with other organisations. Since its establishment in 1869, the Club has existed solely for the benefit of its members. Its structure as a mutual insurance association enables it to respond to the changing needs of its assureds and allows it to provide superior service, attention and coverage. The UK P&I Club is directed by the members. Overall control lies with the directors, elected by the members from amongst themselves. The directors normally meet four times a year to formulate policy on calls, the scope of cover, finance, underwriting and claims matters, reinsurance and issues affecting the P&I world. They resolve specific claims which may not fall clearly within the cover. Thomas Miller, the Club’s managers, is organised to respond promptly to requests for assistance and to provide informed advice and help with members' claims. Individual support goes far beyond that normally provided by a commercial insurer. The UK Club’s size and the scale of the managers' operations has enabled the latter to develop specialist skills and expertise seldom seen in marine P&I. In 350 ports around the world, on-the-spot help and local expertise is always available to members and the masters of their ships from the Club's 460 correspondents and claims handling services and advice from the network of offices and branches in London, Piraeus, New Jersey, San Francisco, Hong Kong, Singapore, Tokyo, Beijing and Shanghai. Thomas Miller The Thomas Miller Group manages a number of world-leading mutual insurance organisations or “clubs,” providing insurance for shipping, transport and professional indemnity risks; and captive insurance companies in the Isle of Man and Bermuda. Thomas Miller provides risk management consultancy services and, through its regulated specialist subsidiaries, delivers a full investment management service to mutual clubs, captives and other clients. The firm incorporated in 1999 and is owned and controlled by its 550 employees worldwide. Source: UK P&I Club |
Disciplined underwriting increases UK P&I Club free reserves to new high