Robust Development Supported by Strong Operating Results
NEW YORK, JULY 3, 2013: Eagle Ocean Marine (EOM) – a specialist fixed-premium P&I and FD&D facility underwritten by the American Club – reports a solid second year of operations, and a strong start to its third year of activity, following the successful July 1 renewal of its quota-share and excess of loss reinsurances in the London market.
Over the past year, Eagle Ocean Marine’s premium grew by more than 20% to a total of about $6.5m. In addition, steadily rising levels of enquiries and orders indicate a promising outlook for EOM’s future development.
At the operating level, EOM has continued to perform well. Both the incidence and severity of claims has remained low, reflecting a prudent policy of risk selection and premium pricing. Results to date show a healthy underwriting credit balance. This, together with confidence in EOM’s prospects generally, were factors in the recent renewal of the facility’s reinsurances which were completed on positive terms.
Eagle Ocean Marine offers P&I and FD&D cover for operators of smaller ships of up to 12, 500gt in local and regional trades. Providing P&I cover of up to $50m per risk, it is aimed at owners who do not require, owing to the characteristics of their trade, the high limits of cover provided by the mutual clubs, and who prefer a fixed-premium approach to their insurance needs.
EOM insures ships from all over the world except the United States. 65% of its business is derived from Asia, with the remainder originating for the most part from Europe, Latin America and Africa. The facility’s tonnage by vessel type is broadly based, with tankers, general cargo vessels, bulk carriers and tug and barge business forming the main sectors in approximately equal shares.
Speaking in New York recently, Joe Hughes, chairman and ceo of Eagle Ocean Agencies, Inc., which operates the facility, was upbeat: “We are very pleased that Eagle Ocean Marine continues to do well. Its second year was even better than the first. Premium income, market share and operating results all continued on a positive note, which augurs well for the future.
“We are determined to make EOM a growing success for all its stakeholders: its insureds, the club, its reinsurers and its many other business associates.
“We continue to take the long view when it comes to developing market share. The EOM business model is based on careful risk selection, sensible pricing, effective loss prevention and unsurpassed claims service. It is 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 genuinely high standards of service. We are confident that EOM will enjoy increasing success over the years ahead.”