The Swedish Club remains committed to achieving balance in its technical account, by matching premiums with exposure. In his report to the Club’s Board, meeting in London yesterday (December 6), Managing Director Lars Rhodin offered an overview of 2012 and the prospects for 2013.

He told the Board: “It is challenging to take a position on a General Increase in today’s climate. Nevertheless, we believe that 7.5 per cent – which is at the lower end of the range of increases announced by International Group Clubs – is appropriate, given the continued rise in shipowner liabilities and underlying claims inflation. As always, in taking this decision, we are mindful of the interests of our members and the difficult trading environment in which they operate.”

During the London meeting, The Swedish Club’s Board agreed the 7.5 per cent General Increase, together with a five per cent General Increase for Freight, Demurrage and Defence (reflecting inflationary pressure on legal costs). An increase in the standard deductibles by USD 1,000 was also agreed for both P&I and FD&D.

Lars Rhodin told Board Members: “The Club’s growth during 2012 was in line with expectations. The P&I book now stands at 51 million GT,  including Charterers’ entries. As for claims, the sharp rise in overall claims frequency seen during the 2009-2011 period levelled off in 2012, but all Clubs have seen both frequency and severity increase substantially for non-attritional large claims. Claims costs are on the rise, with claims inflation continuing in the 3-4 per cent range.

 

Contact:
Lars Rhodin,  The Swedish Club,  Telephone: +46 31 638 400

TRS Public Relations,  Telephone: +44 1304 813 366

 

The Swedish Club was founded in 1872 and is today a leading and diversified mutual marine insurance company, owned and controlled by its members. The Club writes Protection & Indemnity, Freight Demurrage & Defence, Hull & Machinery, Hull Interests, Loss of Hire, War Risks, and any additional insurances required by shipowners or charterers. We also write Hull & Machinery, War risks and Loss of Hire for Mobile Offshore Units and FPSO’s.

Our head office is located in Gothenburg, Sweden, and branch offices in Piraeus, Hong Kong, Tokyo and Oslo.

More information about the Club is available at: www.swedishclub.com