The UK P&I Club’s Board of Directors concluded its annual spring meetings in Rapallo, Italy, culminating in a full Members’ Committee meeting on 18 May 2026.
The Board reviewed the Club’s performance for the year ended 20 February 2026 and considered progress on a number of strategic and operational matters, including the proposed merger with the TT Club.
Proposed merger with TT Club
Much discussion over the weekend centered on the Club’s upcoming merger with the TT Club and the proposed purchase of Thomas Miller Holdings (TMH).
Directors were pleased to hear that the merger is on track and proceeding well. The intention is for both Clubs to sign a framework agreement in early June which will formally commit both Clubs to the merger. The merger is expected to conclude on 20 February 2027 in line with the original plan.
At a workshop over the weekend Members discussed the benefits of the merger in detail. The two Clubs are excited to be working together to create a more resilient platform for growth, improve capital strength, and enhance both Clubs’ ability to deliver sustainable, high-quality service.
The merged Club will enjoy a stronger and more diversified capital base delivering more resilience against volatility, and the resource to invest in and keep pace with a changing world. The merger will also deliver significant cost savings to both Clubs, improving future financial performance.
The combined expertise across both Clubs will deliver unparalleled insight into the risks and opportunities shaping our Members’ future.
The Clubs have together made a proposal to purchase the remaining shares of TMH. The TMH Board have accepted this proposal and will recommend the offer to its shareholders. If the shareholders accept the offer, the acquisition of TMH is expected to conclude in Q3 2026 upon receipt of regulatory approval.
Financial performance
The Board approved the financial statements for the year ended 20 February 2026.
The Club delivered a robust result in a challenging operating environment, with a significant surplus for the year, with free reserves increasing to $586 million, a record high for the Club.
The combined ratio improved to 105%, reflecting a more normal claims environment following the exceptional experience of the prior year. Strong investment performance, with a return of 9.4%, more than offset the underwriting deficit.
The Club’s capital position remains strong, with a Solvency UK coverage ratio of 244% and an S&P rating of A- (stable).
The Directors agreed to close the 2023 policy year with no further adjustment to premium.
Renewal and underwriting
In recent years pricing has steadily recovered following the previous soft market cycle and, at the 2026 renewal, the Club achieved a further rate increase in line with the Board’s expectations.
The combined ratio of 105% is at the upper end of the Club’s target range, while the Club’s non mutual business lines including charterers liability and the UK Fixed portfolio of fixed premium P&I business delivered a positive underwriting return of $8m, contributing strongly to overall performance.
The Club continues to refine its risk appetite and to take appropriate action to improve the overall composition of its mutual and fixed premium portfolio.
Mutual tonnage rose to 168 million GT, demonstrating strong support for the Club and continued growth from existing and selected new Members. The Club has secured strong commitment from across the Membership base to add further new tonnage over the next couple of years.
Claims
Claims experience for the year showed a marked improvement compared with the exceptionally costly 2024/25 policy year.
Overall claims experience was broadly in line with expectations. While none of the Pool claims approached the scale of the DALI loss in the previous year, Pool activity remained above the long-term average and continued to be a significant driver of the overall result. However, this was partly offset by a lower incidence of large claims within the Club’s retention.
The improved retained claims experience more than offset the higher Pool costs and reflects the benefits of underwriting discipline and ongoing loss prevention initiatives. More broadly, claims continue to demonstrate volatility in both frequency and severity, driven by a combination of operational risks, legal developments and an increasingly complex geopolitical environment.
Members enjoyed a granular discussion of current claims issues, including the ongoing development of the Dali claim, the continued issue of containership fires and correlating exposure to charterers, recent pool claims and an update on some older Club claims.
The impact of limitation on a number of ongoing claims was debated and the ongoing trend of increasing cost of US bodily injuries remains a concern for the Board (although Directors noted that the Club is uniquely placed to manage this risk through the team of Bodily Injury specialist lawyers in the Club’s New Jersey and San Francisco offices).
Outlook
Overall, the Board noted that the Club remains in a strong position, with a robust capital base, improving underwriting performance and continued growth.
The proposed merger with the TT Club represents a significant strategic opportunity, and further updates will be provided to Members in due course.
The Board will continue to monitor market conditions and claims trends closely as the Club progresses its strategic priorities.
