UK P&I Club capital reaches record high
Latest Review of the Year shows enhanced financial
strength of UK Club
In its Review of the Year 2011, published this week,
the UK Club posted total assets of $1.6 billion.
Dino Caroussis, Chairman of the UK P&I Club,
commented:
"We have achieved our goal of balanced
underwriting so that all the $69 million investment return of the year is
transferred to the reserves. The Club's $478 million free reserves and capital
are the highest they have ever been; our Members can be confident that the
process of rebuilding the Club's reserves has been successful. The Club is back
in a position of considerable financial strength which will enable it to meet
the challenges of the future with confidence."
The Club's total assets exceed its claims liabilities
by 159%, one of the strongest ratios among the clubs of the International
Group. The Club is currently rated A- (stable outlook) by Standard &
Poor's.
Quality of membership remains a priority for the Club,
which declined to quote terms on more than 5 million gross tons of shipping
which did not meet its standards. For existing entries, the Club continues to
work with Members identifying best practices and sharing loss prevention
experience. Its ship inspectors directly implemented that policy by visiting
350 entered ships during the course of the year.
Nearly 65% of the ships entered with the Club are less
than ten years old and one-third are less than five years old:
Nick Whitear, Communications Director for the Club's
managers, Thomas Miller P&I, explained,
"We have seen a major turnover in the ships
entered with the Club as our Members have been actively modernising their
fleets. This is a positive development although it has to be said that it has a
slight negative impact on gross income as owners expect to pay less to insure
newer ships."
There is now strong evidence of a link between the
performance of the shipping markets and the volume of P&I claims,
particularly the attritional or lower level claims. The number of non-Pool
claims, ie those settled directly by the Club, in 2009 was 25 per cent lower
than in 2007. However, the average value of claims continues to rise. In the
last ten years the average cost of a claim increased from $17,806 in 2000 to
$29,069 in 2010.
The UK Club's Review of the Year, which is attached as
a .pdf, can also be found on the Club's website -
www.ukpandi.com - or obtained in hard copy
form by contacting Nick Whitear at Thomas Miller P&I.
Notes to editors:
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, are 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.
For further information please contact:
Thomas Miller P&I Ltd
Hugo Wynn-Williams/Nick
Whitear
Tel: +44 (0) 20 7283 4646
Website:
www.ukpandi.com
Smithfield Consultants Ltd - (Financial Press
Enquiries)
John Kiely/Will Swan
Tel: +44 (0) 207 350 4900
Website:
www.smithfieldgroup.com
Dunelm Public Relations - (Trade Press Enquiries)
David Cheslin
Tel: +44 (0) 20 7345 5232
Websire:
www.dunelmpr.co.uk
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