The ‘A’ rated North P&I club achieved another successful renewal on 20 February 2013, consolidating the club’s position as one of the largest and most financially secure members of the International Group of P&I Clubs.
Owned tonnage entered in North increased from 123 million GT at the 2012 renewal to 127 million GT last week, while the club’s chartered entry rose from around 40 million GT a year ago to stand at over 43 million GT.
According to chairman Pratap Shirke, ‘Whilst our total tonnage of 170 million GT has shown little movement over the 12 month period, I am pleased to report we have secured significant growth in premium income following our prudent decision to set a 15% general increase. This will help to preserve North’s financial strength and maintain our credit rating in the currently very fragile and unstable global economy.’
North secured an ‘A’ stable credit rating for the ninth consecutive year last month from leading ratings agency Standard and Poor’s. The agency confirmed the club was the second largest member of the International Group clubs by owned tonnage, with a market share of 12.5%, and that it had a long-term financial track record of outperforming most of its peers. It also described North’s approach to this year’s renewal as ‘credible and realistic’
Joint managing director Paul Jennings says, ‘Despite setting what was one of the highest general increases in the International Group, the overwhelming majority of our members have supported our financial strategy and have renewed their entries with the club.
‘A total of 15 members were not offered renewal for various reasons, and there were a small number of members where it was not possible to agree renewal terms. However, the reduction in owned tonnage at renewal was offset by the growth we experienced during the 2012 policy year, resulting in an annual increase in owned tonnage of 4 million GT.’
Joint managing director Alan Wilson concludes, ‘This has been a challenging renewal for the whole industry, conducted against a backdrop of continuing global economic uncertainty. We are extremely grateful to our members who have once again shown such strong support and confidence in our strategy of maintaining financial stability, while continuing to provide the highest levels of service in the most cost-effective manner.’
North is a leading marine mutual liability insurer providing P&I, FD&D, war risks and ancillary insurance to 127 million GT of owned tonnage and 43 million GT of chartered tonnage, with 3500 ships entered by 330 members worldwide. It is based in Newcastle upon Tyne, UK with regional offices in Greece, Hong Kong, Japan and Singapore. The club is a leading member of the International Group of P&I Clubs (IG), with over 12.5% of the IG’s owned tonnage. The 13 IG clubs provide liability cover for approximately 90% of the world’s ocean-going tonnage and, as a member of the IG, North supports, protects and promotes the interests of the international shipping industry.