The American Club has reported a strong renewal, achieving targets set by the Board for 2025. While gross tonnage for the Club’s Class I (mutual P&I) entries was virtually unchanged at the turn of the renewal at Noon GMT 20 February 2025, premium income increased by over 7% at the renewal. Its Class II (mutual FD&D) portfolio was renewed on a similar basis, while its Class III (charterers’ liability) business is poised to increase by about 5% in 2025.
Eagle Ocean Marine, the Club’s fixed premium facility, which serves the operators of smaller vessels in local and regional trades, carries an overall historical net loss ratio of 68%. The 23/24 facility year is running below 40%, while the current 24/25 facility year is relatively benign but still in an active period of development as the facility year runs to July of each year.
The Club’s Board mandated target increase in expiring premium for the 2025/2026 policy year was met as the cash rise year on year on renewing business was 7%. Supporting the premium position were deductible and term changes calculated to have a value of another 4% against net premium, resulting in an overall increase of 11% on renewing premium.
Speaking in New York earlier today, Tom Hamilton, the Chief Underwriting Officer of SCB, Inc., the Managers of the American Club, said: “The 2025 renewal underscores the value Club members place on the high level of service provided by the Club, evidenced by a business retention rate of 94% during the renewal. The American Club’s focus remains on rate adequacy and sustainability particularly in response to the emergence of Pool claim activity during 2024. Importantly, the American Club commences the 2025 policy year in a solid position with premium income for P&I, FD&D and charterers’ liability classes, along with Eagle Ocean Marine, in excess of $130 million, and we are encouraged by the expectation for growth across all classes over the course of 2025/2026. We are grateful to our Members, new and existing, our producing brokers, our Board of Directors, and of course, to our executives throughout the world, all key to the Club’s continuing resilience.”
Notes to Editors The American Club 1 American Steamship Owners Mutual Protection and Indemnity Association, Inc. (the American P&I Club) was established in New York in 1917. It is the only mutual Protection and Indemnity Club domiciled in the entire Americas and its headquarters are in New York, USA, providing ocean marine third party liability insurance. The Club is the only American member of the International Group of P&I Clubs, a collective of twelve mutuals which together provide Protection and Indemnity insurance for some 90% of the world’s ocean going fleet. The American Club has been successful in building on its US heritage to create a truly international insurer with a global reach second-to-none in the industry. Day to day management of the American Club is provided by Shipowners Claims Bureau, Inc. also headquartered in New York. The Club provides expert local service for its members across all time zones, through management branch offices located in London, Piraeus, Hong Kong, Shanghai and Houston, plus a worldwide network of correspondents, as well as through its European subsidiary in Limassol, Cyprus. The American Club also operates a fixed premium facility, Eagle Ocean Marine (EOM), aimed at the operators of smaller vessels in local and regional trades. For more information, please visit the Club’s website http://www.american-club.com/ P&I Insurance Protection and Indemnity insurance (commonly referred to as “P&I”) provides cover to shipowners and charterers against third-party liabilities encountered in their commercial operations; typical exposures include damage to cargo, pollution, death/injury or illness of passengers or crew or damage to docks and other installations. Running in parallel with a ship’s hull and machinery cover, traditional P&I cover distinguishes itself from usual forms of marine insurance by being based on the not-for-profit principle of mutuality where Members of the Club are both the insurers and the assureds.