The UK P&I Club, a leading provider of P&I insurance and other services to the international shipping community, announced its financial results for the year ended 20 February 2022.
The Club’s financial position remains strong with free reserves of $488 million as at 20 February 2022. The Club continues to comfortably meet all its regulatory capital requirements and remains in the highest AAA band of Standard & Poor’s capital model.
The Club’s combined ratio of 115% is a significant improvement over last year and its own large claim experience was positive for 2021/22. However, the IG pool suffered its worst ever year (net of reinsurance), exceeding last year’s record.
It was another volatile year for investments. Global investment markets performed favorably for much of the year until the market correction just before the Club’s year-end. The final return of approximately $19.6 million, or 1.9%, was strong given prevailing market conditions and offset much of the underwriting deficit.
Nicholas Inglessis, Chairman of UK Club, says: “The Club’s capital strength and reputation for excellent service were underpinned by an outstanding renewal. The Club has made significant progress over the last two years towards correcting premium ratings and stabilizing the underwriting result. The recent renewal demonstrated the continuing appeal of the Club to Members.”
Andrew Taylor, CEO of Thomas Miller P&I, says: “The Club remains well placed to deal with future challenges and remains focused on providing excellent service to our Members. As premium rates have fallen over recent years, the Club has focused on its underwriting discipline and the progress demonstrated this year is a testament to the strength of the Club’s partnerships with its Members.”
Source: UK P&I Club