Capital strength provides the foundation on which the Club will achieve its goal of maintaining long term financial strength.

Capital strength
The stability of underwriting result over the last five years, coupled with robust investment return, has enabled the Club to build a strong capital base. The Club’s free reserves have reached $449 million with $99 million of hybrid capital taking the overall free reserves and hybrid capital to $548 million. Capital strength provides the foundation on which the Club will achieve its goal of maintaining long term financial strength.

Growth in the Club’s free reserves and capital, financial years ending February 2007-2015, $m.

Risk appetite
The Club manages risk within its appetite through mitigation techniques such as reinsurance.

The Club’s target is to hold sufficient capital to cover the rating agency and regulatory requirement, plus an appropriate buffer. This buffer is designed to ensure that the Club could withstand the impact of a very adverse year, yet continue to hold enough capital to meet the regulatory requirement.

Composition of S&P capital requirement compared to Club’s capital February 2015.

Maintenance of capital
The Club aims to preserve capital through robust risk management processes including  reinsurance purchase and other risk mitigating techniques. The Club’s internal model enables the capital impact of these techniques to be identified in advance so allowing the Club to make informed decisions on their use. Risk management techniques can reduce but not remove volatility.

The graph below is generated by the Club’s internal model and shows the probability of various claims outcomes for the 2015 policy year. Analysis is completed each year and assists the Board when setting the premium requirement. The Club seeks to meet the mean claims outcome through annual premium, capital is required to meet fluctuations outside of the mean level. The 2012 and 2014 policy years were close to mean, with the 2013 policy year more expensive.

The financial strength of the Club has enabled it to absorb the more expensive 2013 year without diluting its capital base.

Probability range of claims outcomes 2015 policy year net of Club’s reinsurances and Pool reinsurance.

Capital management
The Club has determined the immediate actions that it would take should its available capital fall below the target level. In addition, to avoid holding excessive amounts of capital, the Club has set an upper limit to the capital that it should hold, given the risks it faces and its risk appetite. Should the available capital increase above the upper limit,the Club would also take appropriate actions to address this; such actions may include the return of capital to Members.

Emergency Contacts

If you need to call our offices out of hours and at weekends, click After Office hours for a up to date list of the names of the Duty Executives and their mobile phone numbers. 

Ship Finder

This Ship Finder is updated on a daily basis. Members who need to advise the Club of updates to their recorded ships' details should advise their usual underwriting contact.