UK P&I Club to impose 5pc increase in 2010

THE premium rating of all UK P&I Club members (mutual and fixed) will be increased by five per cent from February 20, plus any increase in the cost of the International Group reinsurance premium in 2010 for mutual members.

With regard to the 2008 supplementary premium, the Club anticipates it will "incur a higher level of retained claims than any other year in the current decade," a statement said. In spite of this, the Club has decided to maintain the supplementary premium at its original estimate of 20 per cent.

It said the release call for 2008 is set at 30 per cent of mutual premium, i.e. the supplementary premium due plus 10 per cent, plus any outstanding instalments of mutual premium. That for 2010 is set at 25 per cent of mutual premium plus any outstanding instalments.

"The 2009 policy year is showing signs of lower levels of claims due to the downturn in the world economy and its effect on shipping markets. The six-month period between February and August 2009 has experienced an overall improvement in claims reserves," a Club statement said.

As of August, the Club's total capital stood at approximately US$368 million, an increase of $34 million from the year ending February 20, 2009.

The investment return for the year to the end of August 2009 was 6.85 per cent, equivalent to $65 million. At the end of August, the Club's exposure to equities represented 11 per cent of the total investment portfolio.

The Club's current Standard & Poor's rating is A- (Stable Outlook).

Dino Caroussis, chairman of the UK P&I Club, said: "The Club is pleased to report that the claims pressures and market wide investment losses that strained the Club this time last year have shown early signs of respite, with claims trending downwards and investments producing significantly improved returns."
 

Source: SchedNet