15th June 2020
London P&I Club reports operating surplus and increase in free reserves for 2019/2020 financial year.
Reporting results for its 2019/2020 financial year, The London P&I Club has recorded an operating surplus of US$5.0 million and an increase in free reserves to US$173.9 million.
Earned premium income (net of reinsurance costs) increased by US$13.7 million when compared with the previous year and the result included positive contributions from the Club’s fixed premium products and FD&D Class. In addition, there was an overall 9.1% return from the Clubs’ investment portfolio.
Commenting on the results, Ian Gooch, CEO of the club’s managers (A Bilbrough & Co Ltd), said:
“The increase in our free reserve follows a challenging claims outturn for 2019/20. Personnel and cargo claims involving Members ran at unusually expensive levels and there was an increase in the cost of contributions we’ve made to the International Group Pool to help cover other Club’s claims. This, coupled with the effect of reductions in P&I rates over recent years, has impacted on our technical performance leading to a combined ratio of 137%. That’s something which we’re taking steps to address and was a driver of our approach to the 2020 renewal which saw an important increase in rates.”
Notes to editors
Insuring a diverse range of shipowners and charterers, The London P&I Club is one of the world’s leading Protection and Indemnity Associations, providing P&I, FD&D and War Risks cover to our international membership. From tailored solutions to flexible insurance packages – all of our work is directed at meeting our members’ specific needs.
We are proud of our position within the International Group of P&I Clubs, where we play a key role in coordinating and promoting the collective, global strength of the P&I industry on behalf of the world’s shipowning community.
At the London P&I Club, we are committed to providing the best possible service to our members. High quality, responsive support is fundamental to the way we work. The interests of our members are protected by a specialised team with a world-wide reach, including experienced lawyers, former mariners and insurance professionals. The day-to-day operation of the Club is performed by our managers, A Bilbrough & Co Ltd.
We have offices in London, Hong Kong and Piraeus; and we have a global network of correspondents, lawyers and surveyors, all of which ensures our provision of a high calibre 24-hour service to our members, wherever they are based.