Members of The Swedish Club will not incur a supplementary call for the P&I policy year 2008/09. This decision was taken by the Club’s Board, meeting in Singapore on April 2. The Board also decided on the following amendments;
- policy year 2006/07 closed
- policy year 2007/08 the release call to be amended from 45% to 10%
- policy year 2008/09 the release call to be amended from 40% to 25%
- policy year 2009/10 the release call as previously 25%.
Late last year The Swedish Club took swift and decisive action to counter a number of highly adverse trends. This was triggered by developments beyond control including substantial investment losses (in common with all clubs) and an unbalanced pool liability record (arising from a highly unlikely deviation from statistical norms). The above factors combined with changes and anticipated changes in International Group rules for pool claims liabilities necessitated action.
In response, The Swedish Club’s Board decided in December 2008 to make supplementary calls for the P&I policy years 2006/07 and 2007/08. A decision concerning 2008/09 was deferred until the April board meeting, to allow more time for an unprecedented global financial situation to clarify.
Commenting on the decision not to make a supplementary call for 2008/09, Managing Director Lars Rhodin says: “We faced an extraordinary combination of factors late last year and we rose to the challenge. Our members responded positively to the call for a capital injection. In doing so, they recognised the inherent strength of our business and the quality of the portfolio. This is our greatest asset in these challenging times. We received an overwhelming vote of confidence and, as a result, we retain our capital strength and are ready to move forward with confidence.”
Since December, many governments have taken firm, coordinated action to bring the global financial crisis under greater control. Meanwhile, The Swedish Club took a series of measures to further improve its position. The investment mix was revised, to recognise the new realities in world markets. Lars Rhodin adds: “In addition, we continue our efforts to match premium income to risk exposure.
Contact:
Lars Rhodin The Swedish Club Telephone: +46 31 638 400
TRS Public Relations Telephone: +44 1304 813 366
The Swedish Club
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, Loss of Hire, War Risks and any additional insurances required by shipowners. The head office is located in Göteborg, Sweden, and branch offices are located in Piraeus, Hong Kong and Tokyo.
As at 1 April the Club covered 1,260 vessels for P&I, 593 vessels for FD&D and 1,355 vessels for Hull & Machinery.
More information about the Club is available at: www.swedishclub.com