Why UK P&I?

The Club's free reserves and capital has further increased to $486m representing reserves and capital of over $4.5 per ton.

There are three main factors behind our strong position. We will concentrate on these areas going forward.

1. We will grow in a well-considered manner, not for growth’s sake. Our underwriting policy will continue to set the appropriate risk selection criteria in light of claims and economic trends. Our combined ratio is again on target to achieve at or below 100%.
2. We will continue to innovate and seize long term financial opportunities. Our innovative hybrid capital and reinsurance programmes are two prime examples. These are explained in more detail, overleaf.
3. Our holistic risk management will continue to address key shipping risks to safeguard our members against a run of substantial claims.

As our latest financial report shows, both hybrid capital and reinsurance programmes are serving the Club well. They also prepare us well to meet the anticipated Solvency 2 regulations.

Our financial position has strengthened further.

The general increase figure is 3%. Claims inflation is evident and the economic climate still uncertain.
This is the right thing to do for the Club at this time.

Getting to 3%

Financial prudence and persistent claims inflation support our 3% general increase decision for 2012. It is the right approach despite the improved free reserves and the tough economic climate our members are facing.

Controlled growth

The Club continues to grow in a controlled way. Our owned mutual tonnage now stands at 109 million GT.