The Swedish Club’s P&I portfolio has steadily increased over nine months this year, since the last renewal. The P&I book totalled 46.6 million GT at December 1.
Reporting to the Club’s Board, meeting in London on December 2, Managing Director Lars Rhodin said: “This is an encouraging result of last years’ marketing efforts of our P&I offering and the wider benefits of membership of The Swedish Club. Furthermore, it was achieved with no compromise on our high standards of quality and firm underwriting discipline. It has, so far, been a good year, underlined by healthy underwriting surpluses ahead of our expectations.
“The growth we have seen comes from more vessels entered with the Club for P&I by our existing Members, the addition of new P&I Members and, of course, valuable new business introduced to us by the broking community. This year has also seen a clear change in market perceptions of The Swedish Club. In the past there has been a sense, in some quarters, that The Swedish Club is a Hull insurer first, albeit with a strong interest in P&I. Today, this perception has changed. We are now clearly seen as an expanding and attractive P&I Club, first and foremost, whilst retaining a strong commitment to the Marine side of our business.”
Lars Rhodin briefed the Board on progress in establishing the new “Team Norway Energy” with an office in Oslo, which is now in place and under the leadership of Verner Rydning. He described this as a significant diversification initiative for the Club.
Lars Rhodin also reported good progress in developing the Marine book, which to date has performed ahead of forecast in 2010. The Club has benefited from positive volatility on this front, with the absence of major claims for a long period. The Managing Director added that the drive to enhance the Marine portfolio, through greater diversification, had been successful. There have been notable increases in contributions from IV (Increased Value), Loss of Hire and War classes. He pledged that the drive for more diversification would continue during 2011 and beyond.
During the meeting, the Club’s Board considered proposals for a General Increase. It agreed a General Increase for the 2011-2012 P&I policy year of 2.5 per cent. Lars Rhodin described this as a “responsible outcome”. It takes account of the Club’s satisfactory performance and a relatively benign claims environment, together with the economic challenges faced by Members. At the same time, a modest increase was justified, to recognise the growth in shipowner liabilities, the continued increase in claims frequency and the expectation that claims values will rise as general economic recovery takes hold. In addition, a General Increase for Freight, Demurrage & Defence of 10 per cent was agreed, to take account of inflation and a higher utilisation of the Club’s resources, reflecting the increase in litigation arising from economic difficulties during the past three years.
Yours sincerely,
The Swedish Club
Lars Rhodin
Contact:
Henric Gard, The Swedish Club, telephone: +46 31 638 400
TRS Public Relations, telephone: +44 1304 813 366
The Swedish Club was founded in 1872. It is a leading mutual marine insurance company, owned and controlled by its members. The Club writes Protection & Indemnity, Freight Demurrage & Defence, Hull & Machinery, War Risks, Loss of Hire, and any additional insurances required by shipowners. The head office is located in Göteborg, Sweden, and branch offices are located in Piraeus, Hong Kong, Oslo and Tokyo.
As at 1 December the Club covered 1.375 vessels for P&I, 705 vessels for FD&D and 1.469 vessels for Hull & Machinery.