London, 6th November 2026: The Board of the UK P&I Club has agreed a 4.5% General Increase for the 2027 policy year reflecting continuing claims inflation and the rising cost and complexity of major casualties.
The Club’s 2026/27 performance remains in line with expectations. Pool claims have been relatively benign during this period, and whilst retained claims have been higher than forecast year to date, the positive development on prior-year claims means the Club forecasts a year-end combined ratio of approximately 100%, an improvement on 2025/26. Investments have also generated sound returns and the Club continues to be very strongly capitalised, with free reserves of more than US$600 million.
Building on this financial strength, the Club and TT Club jointly acquired Thomas Miller Holdings in October 2026, bringing the management under Club control and retaining more value for Members. The acquisition forms part of the wider transaction that will bring the Clubs together on 20 February 2027, subject to regulatory approval. Combining the Clubs’ complementary strengths will create the first transport mutual to span the full cargo supply chain. Current market conditions reinforce the rationale for the merger, which will create greater scale, even stronger financial resilience and more capacity to invest in claims handling, loss prevention and specialist expertise.
Inflation continues to impact underlying loss costs, particularly for illness and injury claims. The Club also sees major casualties becoming more complex and costly, with salvage, environmental response, wreck removal and third-party liabilities able to rise well ahead of general inflation. Upward pressure is also expected on the cost of the International Group reinsurance programme for 2027.
Premiums need to keep pace with claims costs, but the Club’s financial strength and the benefits of the merger have enabled the Board to keep the General Increase to 4.5%.
Individual renewals will reflect each Member’s record, risk profile and existing terms. The Club will also target a 10% increase in deductibles below US$50,000, subject to a minimum increase of US$1,000.
William Beveridge, Chief Underwriting Officer, UK P&I Club, said: “The General Increase reflects the continuing rise in underlying claims costs. Pool claims have been relatively benign this year, but major casualties are becoming more expensive and complex, and the cost of illness and injury claims continues to rise. The Club’s financial strength, and the expected future benefits of the merger, allow us to take a longer-term view, keeping the General Increase to 4.5% while recognising that premiums need to cover the inflationary increase in the cost of claims.
“The Club is in a robust position. We expect to improve our combined ratio this year, our investments continue to perform well, and our capital base remains among the strongest in the International Group. This sets firm foundations for our strategy to grow and diversify. Our merger with TT Club is a key part of that strategy, and today’s market complexity highlights its relevance. Together we will have greater scale and even stronger financial resilience, with more capacity to invest in the expertise and support our Members rely on as their risks change.”
