Joe Hughes
EAGLE OCEAN MARINE ENJOYS ANOTHER SUCCESSFUL YEAR AMID AMERICAN CLUB’S CENTENNIAL CELEBRATIONS
Growing market share and continuing profitability augur well for the future.
NEW YORK, JULY 27, 2017: Eagle Ocean Marine (EOM), the American Club’s fixed-premium P & I and FD & D facility, recently completed another year of steady growth and continuing profitability. It has also renewed its reinsurance program for a further twelve months from July 1 on favorable terms with the solid support of its coventurers at Lloyd’s. This, coupled with a strong operating performance, has been an additional cause for celebration as the Club moves into the second half of its 2017 centennial year.
EOM offers attentive, competitively-priced Protection and Indemnity and Freight, Demurrage and Defense insurance to the operators of smaller vessels, typically those in local and regional trades, who prefer a fixed premium approach to their P & I needs.
It provides the benefits of American Club primary cover and service capabilities, co-venturing the first layer of insurance protection with underwriters at Lloyd’s on a quota-share basis. Lloyd’s syndicates also participate in the facility’s excess reinsurance arrangements for limits up to $500 million per risk. In this way, Eagle Ocean Marine offers the unsurpassed levels of service associated with an International Group club, underpinned by the impeccable security of reinsurance at Lloyd’s.
EOM insures ships from all over the world except the United States. It enjoys a strong presence in Asia, approximately 48% of its business currently being derived from Southeast Asia and 32% from Greater China. However, its share of the market in Europe, the Middle East and Africa has also grown over the past year and now accounts for about 15% of its total portfolio.
EOM’s revenue has similarly increased over recent years. The recently concluded insurance year featured a topline increase in revenue of approximately 16% over the previous twelve months. Total income exceeded $8 million for the first time. It is expected that steady revenue growth will be maintained over the year ahead.
At the operating level, the last several years have enjoyed consistently good results. The incidence and severity of claims have remained at moderate levels, reflecting a prudent policy of risk selection and premium pricing. Since it commenced operations in 2011, EOM has generated an aggregate profit margin in excess of 30%. This, together with confidence in EOM’s prospects generally, informed the recent favorable renewal of its reinsurances.
Speaking in New York today, Joe Hughes, Chairman and CEO of Eagle Ocean Agencies, Inc., which operates the facility, was thoroughly upbeat: “We are very pleased to report that Eagle Ocean Marine continues to enjoy a strong operating performance. Its increasing market share and steady profitability augur well for the future. We are determined to make EOM a growing success for all its stakeholders: its insureds, the American Club, its reinsurers and its many other business associates.
“We take the long view when it comes to developing market share, and will continue to ensure that the EOM product is characterized by careful risk selection, sensible pricing, effective loss prevention and unsurpassed claims service. Inspired by the traditions of classic P & I mutuality, EOM occupies 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.”
