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Financial Highlights 2008
 Continued high levels of claims and a turbulent investment environment shaped the outcome of the UK P&I Club's financial results for the policy year 2007. Compared with the previous year, there was an increase in the claims retained by the Club and a slight reduction in those covered by the International Group Pool. However, the latter again had a significant impact on the Club's results.
Total Club funds increased to $992 million. However, an increase in net claims reserves to $763 million has reduced free reserves by $34 million to $229 million, the same level as at February 2006.
The sustained high level of large claims which shaped 2006 continued in 2007 with the impact on the Pool amongst the greatest in the past 15 years.
The Club's non-Pool record had improved since 2001. This reflected a relatively stable performance when combined with improved premium income. However, twelve months into the 2007 policy year, retained claims had increased about 18 per cent above the average for the preceding five years.
The increase is largely attributable to collision and personal injury claims, contrasting with a slight decline in reported cargo claims.
Investment performance was above initial expectations at 6.5 per cent for the year compared to 9.7 per cent in the previous year. In October 2007, equity holdings were reduced from 19 per cent to 1.6 per cent and the proceeds placed in short-dated fixed income securities and bank deposits, substantially reducing the Club's investment risk.
The Club has an "A" strong rating with Standard & Poor's.
A Financial Highlights 2008 newsletter is now available in PDF format in the Publications section of this website together with a Club Circular and press release.
The Directors Report and Financial Statements will be published as usual later in the summer.
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