.png)
13thNovember 2023
P&I mutual entries
- 7.5% general increase has been set to apply to all mutual premium rates.
- An increase of 10% will be applied to all deductibles below USD 50,000.
- Additional action will be taken where necessary with rates and terms adjusted as appropriate to reflect record and/or risk exposure.
- No change has been made to the calling structure or instalments: an estimated total mutual call shall be payable in four equal instalments, each of 25% of the total mutual call during the Policy Year.
- A release call of 15% shall apply.
FD&D entries
- 5% general increase has been set to apply to all mutual premium rates.
- No change will be made to the deductible structure.
- As with P&I mutual entries, an estimated total mutual call shall be payable in four equal instalments, each of 25% of the total mutual call during the Policy Year.
- A release call of 15% shall apply.
The Club noted during the recent board meeting that the Club’s own claims for the2023/24 Policy Year are better than forecast and claims development on prior years also showed general improvement and that the combined ratio is forecast to be around 100% at year end.
The Free Reserve is forecast to increase to around USD 241 million, with investment returns, although positive, being constrained by the continued rise of interest rates globally. Capital is expected to further increase at February 2024, to a Solvency Ratio of around 180%.
The annualised mutual entry at year end is expected to be 100m GT with an annualised gross premium of around USD 250m. The Club achieved an A rating with stable outlook from AM Best.
Notwithstandingthe above, and despite the Club’s overall strong performance, the Club renewal circular sets out the main highlights from the Clubs operating environment which were considered when deciding the general increase requirements:
- As expected, claims experience on the International Group Pool has increased from last year’s low level of activity, with seven reported claims in the current Policy Year together with some adverse development on back year Pool claims notified by other Clubs.
- The Board recognised that premium remains insufficient to meet expected future claims costs as inflationary pressures continue.
- In order to ensure that the Club meets its long-term objective of breakeven underwriting, the Board therefore decided the above-mentioned general increase.
