Standard & Poor's May 2016 Rating Report for the UK Club is available in full as a pdf.

Business Risk Profile: Strong

• International Group of P&I Clubs (IG) membership provides market access.
• Second-largest IG member by owned tonnage and premium.
• Longstanding relationships with members.
• Improved operating performance.
• Exclusive focus on marine lines.

Financial Risk Profile: Strong

• Extremely strong capital adequacy, which is a key strength to the rating.
• A more stable technical profit since 2010.
• Exceptional loss record on the pool, and hence a low pool share compared to the club's market share by premiums.
• Conservative reserving.
• Low interest coverage, which limits our financial flexibility assessment.
• Underlying strong financial flexibility due to the United Kingdom Mutual Steam Ship Assurance Association
• (Bermuda) Ltd.'s ability to make supplementary calls on members.

Other Factors

• We have elected to assign the higher of the two anchor ratings implied by our assessments of the club's business and financial risk profiles to reflect the club's underlying financial flexibility.

Outlook: Stable

The stable outlook on United Kingdom Mutual Steam Ship Assurance Association (Bermuda) Ltd. (the U.K. Club) reflects our view that the club's capital adequacy will remain in the 'AAA' range. In addition, we expect the club's underwriting performance to remain on a par with a recent strengthening and stabilization through February 2017-February 2019. We anticipate that the club's conservative reserving, reinsurance program, and smaller share of the IG pool will serve to stabilize the results that enhanced underwriting standards have improved in recent years.