UK P&I Club announces restructure in advance of Solvency II
The UK P&I Club (the UK Club), one of the oldest shipping protection and indemnity insurance mutuals, formally announces a reorganisation of its structure to establish the UK Europe as the sole provider of direct insurance business to UK Club Members. The new structure will take effect from February 2013 and does not impact members in the 2012 policy year.
The change will reduce the number of separately regulated entities, strengthen governance, reduce compliance costs and efficiently manage the Club's solvency capital requirements. There will be no change to terms of entry, cover or premium for members and the overall amount of free reserves held by the UK Club before and after will remain the same.
The current UK Club structure utilises three companies: UK Bermuda, UK Europe and a captive reinsurer, IPIR. While many members are insured directly by UK Bermuda (through its respective branches in the UK, Hong Kong, Singapore, and Japan) a substantial number of members are already insured by the wholly owned subsidiary, UK Europe. In the new structure, UK Bermuda will cease to write direct insurance business, responsibility for which will transfer to UK Europe. UK Bermuda will continue to be the holding company, controlled by its Members, and will also become the reinsurer of UK Europe.
All members will shortly be receiving a letter with further details and an invitation to approve the change by voting in proxy or in person at a meeting to be held in Paris on Monday 29 October 2012.
The transfer of UK Bermuda's insurance business has involved a number of regulatory and legal filings, including an application submitted in June 2012, to the High Court of Justice.
Hugo Wynn-Williams, Chairman of the UK P&I Club managers Thomas Miller says:
"The restructure of the UK P&I Club's business has been planned for a long time and is good news for all members. By reducing the number of separately regulated shipowner insurers from two to one, we are able to reduce costs and ensure we are ready for the new requirements of Solvency II."
Further information about the restructure can be found at the Club's website:
- End -
For further details, please contact:
Nick Whitear, Communications Director - Thomas Miller P&I Ltd
+44 (0) 20 7283 4646
Roland Cross / Roddi Vaughan Thomas / Alistair Scott - Broadgate Mainland
+44 (0) 207 726 6111
Notes to editors
UK P&I Club
The United Kingdom Mutual Steam Ship Assurance Association (Bermuda) Limited is generally known as the UK P&I Club. As a mutual association since its establishment in 1869 the Club has existed solely for the benefit of its members. Its structure as a mutual insurance association enables it to respond to the changing needs of its assureds and allows it to provide superior service, attention and coverage.
The UK P&I Club is directed by the members. Overall control lies with the directors, elected by the members from amongst themselves. The directors normally meet four times a year to formulate policy on calls, the scope of cover, finance, underwriting and claims matters, reinsurance and issues affecting the P&I world. They resolve specific claims which may not fall clearly within the cover.
Thomas Miller, the Club's managers, is organised to respond promptly to requests for assistance and to provide informed advice and help with members' claims. Individual support goes far beyond that normally provided by a commercial insurer.
The UK Club's size and the scale of the managers' operations has enabled the latter to develop specialist skills and expertise seldom seen in marine P&I.
In 350 ports around the world, on-the-spot help and local expertise is always available to members and the masters of their ships from the Club's 460 correspondents and claims handling services and advice from the network of offices and branches in London, Piraeus, New Jersey, San Francisco, Hong Kong, Singapore, Tokyo, Beijing and Shanghai
The Thomas Miller Group manages a number of world-leading mutual insurance organisations or "clubs," providing insurance for shipping, transport and professional indemnity risks; and captive insurance companies in the Isle of Man and Bermuda. Thomas Miller provides risk management consultancy services and, through its regulated specialist subsidiaries, delivers a full investment management service to mutual clubs, captives and other clients. The firm incorporated in 1999 and is owned and controlled by its 550 employees worldwide.