Specialist marine and energy insurer The Standard Club has completed its renewal negotiations for 2021, renewing 95% of its expiring portfolio.
But while the Club expects the 2020/21 policy year to perform better than the previous one, it still anticipates that it will result in an underwriting deficit.
This is mainly due to the frequency and cost of large claims arising within the International Group Pool, which has affected all clubs, although it also reflects the general low level of premium rating.
Nevertheless, the Club assured that its reserves and finances remain strong, helped by positive contributions from its investment portfolio.
“2020 was a challenging year for all and we have continued to support our members through these difficult times,” said Mark Collins, Director of Underwriting at The Standard Club. “We, like all clubs, have seen a greater frequency of expensive market losses than predicted which has had an impact on underwriting.”
“We have successfully completed our renewal in line with the budget set by the board with a view to returning to breakeven underwriting, so we can continue to support our members in the long-term.”