UK Club upgraded by S&P to A (Stable)
In May 2014 the UK Club was pleased to announce that Standard and Poor ("S&P") had decided to restore the Club's full A (stable) rating. S&P's full report, explaining the reasoning behind this upgrade, was released on 10 July 2014.
The report explains that, in assessing the Club's business and financial risk profiles across a set of criteria, S&P have determined an anchor rating of "A". This is based upon the "extremely strong capital adequacy" and "improved operating performance" of the Club. This anchor rating translates, without adjustment, to an overall financial strength rating of A (stable).
The restored rating is recognition of the financial progress made by the Club both in strengthening its capital and also in operating consistently at technical breakeven over a period. The report also notes that the "club has strong relationships with its members" and anticipates that the "club will retain a leading position among the IG clubs"
The report makes reference to one technical issue relating to "financial flexibility" which, while the Club's position is described as "strong", is still rated as "less than adequate". S&P's criteria assume that an entity's financial flexibility is dependent upon making sufficient profits to cover annual interest payments on capital instruments (such as the Club's Hybrid Capital) by at least 400%. As a mutual, this criterion is inappropriate for judging the financial flexibility of the UK Club. In line with other members of the International Group, the Club has the ability to raise further capital through the supplementary call mechanism. S&P are therefore able to report that the Club has an "underlying strong financial flexibility".
The upgrade is most welcome and the report endorses the work done by the Club in recent years. However, it is not an end in itself and the Club continues to focus on providing exceptional service to its members as the leading ship-owner controlled provider of P&I insurance.
Downloads
-
19595 - UK_Club_FAR_2014 335 KB
12/09/2016
Download PDF
Tags
You may also be interested in:
The IMO Marine Environmental Protection Committee (MEPC) held its 78th session (MEPC 78) remotely from June 6-10, 2022, and this article seeks to summarise the outcomes from MEPC 78.
It is not always smooth sailing in the shipping industry
Press Release: UK P&I Club announces William Beveridge as its new Chief Underwriting Officer
30/05/2022
The UK P&I Club, one of the leading providers of P&I insurance and other services to the international shipping community, has appointed William Beveridge as its new Chief Underwriting Officer. He joins the UK Club on completion of his current employment obligations.
The Club's Correspondent, Vitsan, has issued a Circular to advise Members of amendments and new provisions in the Turkish Environmental Law for Marine Pollution Incidents, published in the Official Gazette on 15 June 2022.