The ‘A’ rated, 170 million GT North of England P&Iclub has achieved a ‘stable and positive’ result for the 2011/12financial year despite challenging market conditions, according to chairman Pratap Shirke of Australian shipmanagement group ASP. The club’s Management Report 2012 has just been published.
Shirke confirms, ‘Against a background of difficult shipping market conditions, a volatile investment landscape and a trend of increasing claims, we are pleased to report a stable and positive result.’ North marginally raised its free reserve to a new high of US$314.0 million at the annual renewal on 20 February 2012, with premium income reaching US$348.3million and net assets rising to US$896.2 million.
Joint managing director Paul Jennings says, ‘We are ableto report another successful 12 months for North, with further steady andcontrolled growth worldwide. Owned and chartered tonnage reached 123 million GTand 40 million GT respectively at renewal and have since grown to 125 million GT and 45 million GT, resulting in global market share of around 13%.’
Joint managing director Alan Wilson says, ‘North remains financially robust despite the current global economic uncertainty. Our underwriting result was very close to breakeven in 2011/12, producing acombined ratio of 101.8%. Together with a return of 2.76% on our low-risk investment portfolio, this produced an overall surplus for the year of US$1.6 million.
‘In January 2012 we also retained our Standard and Poor’s‘A’ stable financial strength rating for the eighth consecutive year; we are now in our 21st year of not calling on members for unbudgeted supplementary funding; and our capital adequacy looks set to be comfortably in excess of the anticipated January 2014 requirements of EU Solvency II, ’ says Wilson.
Jennings says other positive events for North in 2011/12 included moving into its enhanced and extended headquarters in Newcastle, UK; opening a branch office in Japan; recruiting 14 new staff; and entering into a strategic reinsurance alliance with Sunderland Marine Mutual Insurance Company Limited (SMMI).
Looking to the future, Shirke says diversification will remain a significant feature of the club’s overall strategic direction. ‘Although we are firmly committed to providing our core mutual products of P&I, FD&D and war risks cover, we will continue to explore opportunities to expand and diversify.’
He concludes, ‘North’s strategic priorities areclear: to be a financially strong and stable partner, providing cost-effective insurance and high levels of service and assistance to our members.’
1. A copy of the Management Repor’ 2012 accompanie sthis release. The report and this release can be downloaded from North’swebsite at www.nepia.com.
2. North is a leading marine mutual liability insurerproviding P&I, FD&D, war risks and ancillary insurance to 125 millionGT of owned tonnage and 45 million GT of chartered tonnage, with 4000 ships entered by 400 membersworldwide. It is based in Newcastle upon Tyne, UK with regionaloffices in Greece, Hong Kong, Japan and Singapore. The club is a leading memberof the International Group of P&I Clubs (IG), with over 13% of theIG’s owned tonnage. The 13 IG clubs provide liability cover forapproximately 90% of the world’s ocean-going tonnage and, as a member ofthe IG, North protects and promotes the interests of the international shippingindustry.