Press release: A year of progress
- Free reserves increase to $558 million
- Average combined ratio of 100% over past seven years, 2016/17 combined ratio was 104% excluding currency gains in claims
- S&P rating maintained at full A (stable)
- During the year the Club added net 4 million gross tons of mutual business
- Mutual-owned tonnage now totals 139 million gross tons
- Combined mutual-owned and chartered tonnage is now around 239 million gross tons
Alan Olivier, Chairman of the UK P&I Club, comments:
"2016 has been a further year of progress for the Club. A strong investment return of 4.5% assisted by rising equity markets, and another underwriting result around our combined ratio target of 100%, has increased the free reserves and hybrid capital to $558 million.
During my time as Chairman, one of the Club's most important objectives has been to maintain underwriting discipline. I am therefore very pleased to report another year of underwriting at our breakeven target, marking seven consecutive years with a combined ratio at or close to 100%. This reflects our desire to deliver a consistent and predictable financial result for our Members.
We emerged from the 2017 renewal with broadly the same total premium (net of reinsurance) as we called in the 2016 policy year. Over the last seven years, we have consistently set premium at the right level to cover our claims and expenses, thereby meeting our goal of providing P&I insurance at cost.
Achieving this level of stability has enabled the Club to discount mutual premium three times over the last five years. In total, these discounts amount to $25 million.
Hugo Wynn-Williams, Chief Executive of Thomas Miller P&I, the UK P&I Club's managers, adds:
"The Club enters the new policy year in a strong position, with free reserves and hybrid capital of $558 million, a new comprehensive reinsurance programme, and a very positive renewal. The Club is well placed to meet the challenges of the future as we seek to deliver the best possible service to our Members."
For further details, please contact:
Roland Cross / Jon Atkins / Ed Hooper
+44 20 3697 4200