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7th November 2023
P&I mutual entries
- 5% General increase for the policy year 2024/25.
- No changes in deductibles would be applied.
- The Club reported a combined ratio of 98.5%, with an underwriting surplus of US$ 1.8m
FD &D entries
- 5% General Increase.
- No changes in deductibles.
The recent Board meeting noted that the Club remained in an excellent position, despite no General Increase having been applied for 2023. However, claims in the 2023 year were running at a significantly higher level than in previous years, partly dueto the impact of inflation. Despite this, the Board were pleased to note that this should not, for 2023 at least, put the Club into a negative underwriting position. Mindful of the impact of inflation on the cost of claims going forward the Board resolved that a 5% General Increase should be applied for2024 with the exception of Yachts sector. Dry Cargo, despite the 10% increase in 2023 as for Yachts, will maintain the 2024 General Increase to assist in improving it further to an acceptable level.
The Club renewal circular sets out the main highlights from the Clubs operating environment which were considered when deciding the general increase requirements:
- Balanced against a higher level of claims, the level of income we derive has increased. This has been achieved from a mixture of new business, organic growth and from targeted premium increases from the Dry Cargo and Yacht sectors to address the performance in these specific areas.
- From an investment perspective the year to date has been favourable, a positive investment result is therefore expected, and so the Club expect to continue to see steady growth in the number of Members, vessels and gross tonnage during 2024.
- At the half year stage, the Club reported a combined ratio of 98.5%, with an underwriting surplus of US$ 1.8m, compared with 96.2% and US$ 4.3m at the same stage of the prior year.
- Inflation will continue to be influential in terms of overall claims costs, some increases in reinsurance costs must also be expected. The Club will continue to target a break. The Club will continue to target a break--even combined ratio, providing ongoing stability and cover to Members at cost.
