Reinsurance for new facility period recently concluded on favorable terms with Lloyd’s and other first-class security
Steady growth, continuing profitability and reputation for exceptional service sustain EOM’s leading position as a dependable player in an unsettled market
NEW YORK, JUNE 9, 2020: Eagle Ocean Marine (EOM), the American Club’s facility providing fixed premium P&I cover chiefly to the operators of smaller vessels in local and regional trades, has announced further progress in the development of its business as it enters a tenth year of service to the global maritime community.
EOM’s primary security is provided by the American Club but, unlike the latter’s mutual business, its facility years commence on July 1, from which date it traditionally arranges its reinsurance program for the following twelve months. The renewal of this program was recently completed on favorable terms, mainly with underwriters at Lloyd’s, many of whom have long subscribed to EOM’s business in recognition of its enduring and highly respected presence in the fixed premium P&I market.
Blending the unsurpassed service traditions of an International Group mutual with a responsible approach to risk selection and pricing, EOM has been successful in achieving steady growth with sustained profitability. This has earned it a secure place in a fixed premium P&I market which has experienced considerable turbulence over the recent past.
Since 2015, EOM has enjoyed a compound premium growth rate of about 17% per annum, with the three most recent years exhibiting an annual average closer to 20%. The last three years have also seen an increase in tonnage of 34%, and a rise in the number of insured vessels of 52%. Encouragingly, the average premium per ton has also increased – by about 20% over the period. As it commences its tenth year of operations, EOM insures a fleet of nearly 1,300 vessels of about 2.5 million gross tons generating a total premium of approximately $15 million.
EOM serves a diverse constituency of insureds. About 39% of its business comes from Northeast Asia, 32% from South and Southeast Asia, 20% from Europe and 9% from the rest of the world. All kinds of smaller vessels are represented in its portfolio, the average unit size being a little under 2,000 gross tons.
However, growth and diversity have not come at the expense of profitability: EOM’s aggregate combined ratio since inception is currently less than 80%. These results continue to benefit the American Club mutuality, its reinsuring coventurers, as well as EOM’s insureds and other stakeholders who have been sustained by EOM’s reliability in a shifting fixed premium P&I landscape.
Speaking in New York today, Joe Hughes, Chairman and CEO of Eagle Ocean Agencies, Inc., which operates EOM, said: “Eagle Ocean Marine enters its tenth year of service to the global maritime community in excellent shape. The sterling support recently received from EOM’s reinsurers was a vote of confidence in the sustainability of its business model for the future. In a world of continuing uncertainty, EOM remains the gold standard in the fixed premium P&I sector. It looks with optimism at the many exciting opportunities it is poised to develop over the years ahead.”
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NOTE:
Eagle Ocean Agencies, Inc., is a member of the New York-based Eagle Ocean Group of companies – North America’s leading provider of mutual management, underwriting, adjusting, claims handling, surveying and loss consultancy services to the international shipping and insurance communities. Eagle Ocean Agencies, Inc.’s core business is the provision of coverholder and related services to a variety of insurance carriers.