The Club seeks controlled growth whilst maintaining balanced underwriting results. Robust underwriting discipline, supported by a favourable claims environment, continues to deliver strong results. The Club has recorded six consecutive financial years with a combined ratio at or around the breakeven target. The average combined ratio over the last six years is 99.6%.
Underwriting result for the financial year (excluding mutual premium discounts)
|Year to 20/02/2016||Year to 20/02/2015|
|Combined ratio (excluding currency movements within claims)||91.6%||104.6%|
|Impact on the ratio of currency||(4.2%)||(7.5%)|
|Combined ratio (including currency movements within claims)||87.4%||97.1%|
The Club had a successful renewal and continues to be attractive to new Members. Following the recent renewal, the total mutual tonnage entered into the Club had grown to 135 million gt. The Club is 6.8% larger than one year ago.
In addition to the new Members who joined the Club at the renewal, 97% of all existing Members by tonnage chose to remain with the Club at the 2016 renewal. Many of these Members committed further new-buildings due for delivery during the 2016 policy year. The commitment of new tonnage has rarely been stronger.
The Club welcomes shipowners of all sizes, across all trades and territories. The dominant underwriting criteria are operational quality and safety performance.
Growth over the last twelve months has not been achieved at the expense of the underwriting criteria, which remain robust. 15% of the business offered to the Club failed to meet entry criteria and was rejected.
Service remains paramount
The Club aims to build long-term relationships with all Members. Consequently, one of the Club’s chief objectives is to ensure that all Members receive service of the highest quality. To that end, the Club continues to seek regular feedback from Members through formal surveys and day-to-day contact in order to ensure that service quality is enhanced.
Protecting our Members
The Club’s well-established loss prevention and ship inspection programme is designed to identify, analyse and formulate strategies to mitigate risk and therefore minimise future losses. Helping Members to manager their risks is at the heart of
the Club’s business.
In response to an ever-changing environment, the Club dedicates substantial resources to loss prevention, helping to bring skill, knowledge and experience to this vital discipline. Owners develop preventative measures through policy, procedures, controls, education and training of their crew. The loss prevention department, with its experienced Master Mariners and engineers based in London and around the world, assist Members with these policies.
The Club aims to increase education and awareness of loss prevention, through a variety of mediums including hardcopy publications, DVD training videos, and, most recently, “Apps” for mobile devices. Loss prevention is a fundamental part of the service it provides to Members and continues to build relationships with technical and operations teams, offering constructive and interactive advice where needed.