Joe Hughes
First Year’s Excellent Operating ResultsNEW YORK, JULY 30, 2012: Eagle Ocean Marine (EOM) – a specialist fixed-premium P&I and FD&D facility underwritten by the American Club – has reported an excellent first year of operation, and a strong start to its second year following the favourable renewal of its quota-share reinsurances in theLondon market earlier this month.
EOM’s first-year premium exceeded $5m, slightly outpacing original projections. Moreover, increasing market interest in the facility, indicated by rapidly rising levels of enquiries and orders, suggests a very promising outlook for the second and subsequent years.
EOM performed well during its first year. The incidence and severity of claims were at encouragingly low levels, reflecting a prudent policy of risk selection and pricing. Results to date show a healthy credit balance of premium over claims.
EOM provides P&I and FD&D cover for operators of smaller ships up to 12, 500gt in local and regional trades. With P&I cover of up to $50m per risk, it is aimed at owners who do not require the high limits of cover provided by the mutual clubs, and who prefer a fixed-premium approach to their insurance needs.
The facility’s tonnage by vessel type is broadly based, with tankers, general cargo vessels, bulkers and tug and barge business forming the main sectors in approximately equal shares. EOM insures ships worldwide with the exception of theUS. About 55% of its current business is from Asia, the remainder coming mostly from Europe, Latin America andAfrica.
Speaking inNew York, Joe Hughes, chairman and ceo of Eagle Ocean Agencies Inc., gave an upbeat assessment. “The results to date are very encouraging, ” he said, “and augur well for the future. We are determined to make EOM a growing success for all its stakeholders – ie, its clients, the club, its reinsurers and its many other business associates.”
Mr Hughes added: “We take the long view when it comes to developing market share, and will continue to ensure that the EOM product is characterised by careful risk selection, sensible pricing, effective loss prevention and unmatched claims processing serviced by AC/EOM offices inNew York, London, Piraeus and Shanghai.
“Inspired by the traditions of classic P&I mutuality, EOM seeks to occupy a special place in the fixed-premium sector for those who desire a high-quality approach to their insurance needs. We are confident that EOM’s business model will enjoy increasing success over the years ahead.”
