The UK P&I Club, a provider of protection and indemnity (P&I) insurance and other services to the international shipping community, reported surpassing the milestone of $500 million in gross written premium for the first time, driven by the expansion of its fixed premium P&I business.
This growth was accompanied by an improvement in the combined ratio, which decreased from 115% to 104%.
The Club’s regulatory capital adequacy ratio reached an impressive 200%, demonstrating its robust financial position.
The renewal period witnessed a rise in mutual owned tonnage to 153 million gross tons, reinforcing the Club’s position as a trusted partner for shipowners and operators.
Despite global challenges, including rising interest rates and inflation, the Club’s investment portfolio, predominantly composed of fixed income assets, experienced a decline of 3.8% during the 2022/23 period.
The UK P&I Club maintains a free reserve of $430 million, comfortably meeting all regulatory requirements. Its strong financial position has also secured an ‘AAA’ rating in S&P’s capital model.
Andrew Taylor, Chief Executive of the UK P&I Club, highlighted the Club’s commitment to long-term partnerships with its members, emphasizing best-in-class service supported by the expertise of its personnel. The Club’s capital base demonstrated ongoing resilience as its regulatory capital adequacy ratio increased from 195% to 200% during the year, further solidifying its financial strength.
The UK P&I Club’s exceptional performance amid challenging market conditions highlights its continuous efforts to adapt and excel in the ever-evolving marine insurance industry. With its sustained growth trajectory, strong capital position, and unwavering commitment to serving its members, the Club remains a leading player in the global maritime insurance market.
