The Shipowners' Protection Ltd

23 February 2015

Yachtowners, the specialist yacht syndicate of The Shipowners’ Club, has launched an additional service for those Owners who have purchased its Enhanced PA cover, (crew Personal Accident with medical expenses cover). The availability of this dedicated helpline for crew, providing 24-hour emergency medical advice and access to treatment where necessary, is part of Yachtowners’ strategy to provide the best service in the sector as well as the most comprehensive cover.

Yachtowners continues to bring the established values of mutuality to the growing superyacht sector, including enhanced service and assistance in managing claims. Following the earlier introduction of market leading liability policy wording and PA covers, the addition of this valuable source of assistance to crew in need of medical attention in a foreign port or remote region, further promotes the aim of making life easier for both owners and crew, and is provided at no cost to them.

The Emergency Helpline will be operated by Speciality Assist Ltd*, which provides experienced medical co-ordinators ensuring appropriate advice and care 24/7. Speciality Assist’s contact details will be made available to all crew members employed by vessels benefitting from Yachtowners Enhanced PA cover. The medical cover is applicable to crew whether they are onboard or not at the time of the emergency. Speciality Assist’s service boasts multi-lingual staff with 24hr access to medical expertise  and a comprehensive network of practitioners, clinics and hospitals around the world. All costs incurred will be billed direct to Yachtowners, thus ensuring that the crew and owner are inconvenienced as little as possible.

Head of the syndicate, Nicola Kingman commented, “A prime goal in establishing Yachtowners within The Shipowners’ Club was to bring improved and relevant services to those owning, operating and crewing superyachts.  We are pleased that we have been able to launch this helpline as part of fulfilling this goal and we will continue to develop our products to meet the needs of the evolving superyacht market.”

*www.specialty-group.com/specialty-assist-limited/services

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Notes for editors

The Shipowners’ Club is a mutual marine liability insurer, providing Protection & Indemnity insurance to small and specialist vessels since 1855. The Club is a member of the International Group of P&I Clubs and works with more than 600 broking companies globally to insure over 33,000 vessels across a range of operating sectors and geographical areas.

14 October 2014

The Shipowners’ Club has released its half yearly results as at 20^th August for the 2014/15 year, and reports a strong underwriting performance with a significant increase in free reserves over the same period last year.

Highlights* include

• Earned premiums US$120.3M
• Ultimate claims US$73.6M
• Underwriting surplus US$4.6M
• Investment return US$11.6M
• Increase in free reserves US$15.3M
• Capital and free reserves US$314.1M
• Combined ratio 95.5%

The decision to withdraw from the Pacific North West fishing sector, taken last year, has resulted in a loss of premium income but is expected to have a positive effect on the underwriting result.   Despite this, gross earned premium is ahead of the 2013 figure at the half year stage, and underlying organic growth remains strong.

Reinsurance costs have grown in recent years but the enhanced ‘stop loss’ cover that the Club now has with Swiss Re will mitigate future claims exposure.  Despite one large casualty, claims activity in the first half has been relatively modest, with fewer high value claims and fewer claims overall.

There is a small underwriting surplus in the first six months of the policy year itself but there has also been improvement on prior years to produce a combined ratio of 95.5% at the half way stage.  The Club’s investments have resulted in a return on capital of 2.2% at the half year and an overall surplus of US$15.3 million has been added to free reserves which now total US$314.1 million.

Commenting on the results, Chief Executive Charles Hume said, “The Club remains in a strong financial position and our Board has decided that there should be no general increase applied to premiums for next year. In addition, we will absorb any increase in reinsurance costs; we will continue with our policy of not applying any adjustments for reinsurance at a later stage.  For our pooled membership, we maintain our policy of no additional or release calls.  We thank our Members and their brokers for their continued support and the trust that they place in the Club. We remain committed to them and to the smaller and specialist vessel sector.  However, we are aware that some Members have moved into trading sectors that have resulted in the operation of larger vessels. We are prepared to consider these larger units, and this also extends to regionally trading tankers and dry cargo vessels where we are prepared to consider vessels up to 20,000 GT, and in some cases larger.”

*Six-month period 21^st February – 20^th August 2014 (Unaudited)

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Notes for editors

Shipowners’ are a mutual marine liability insurer, providing Protection & Indemnity insurance to small and specialist vessels since 1855. We work with more than 600 broking companies globally and insure over 33,000 vessels across a range of operating sectors and geographical areas. We are a member of the International Group of P&I Clubs.

20 June 2014

The Shipowners’ Club, which is the leading P&I insurer in the smaller and specialist vessel sector, has reported very healthy results for the twelve months ending 20^th February 2014.  Entered members, vessels and tonnage all grew, resulting in an increase of 9.8% in gross premiums, a combined ratio of 98.9% and an 8.4% increase in free reserves to USD298.9 million. The results were achieved against a background of increased competition and a continuing upward trend in claims.

Highlights:

• Earned premiums USD213.1 million
• Incurred claims USD158.5 million
• Underwriting surplus USD2.3 million
• Investment return USD20.9 million
• Increase in free reserves USD23.2 million
• Capital and free reserves USD298.9 million
• Combined ratio 98.9%

In his statement Shipowners’ Chairman, Donald MacLeod drew attention to the performance of the Club over the six-year period since the so-called economic crisis of 2008 and the trading difficulties that have ensued.  “The Club has successfully navigated these troublesome and difficult waters, emerging stronger than ever by adhering to the principles that it should achieve a balanced underwriting result, and that investment income should be used to bolster reserves, not subsidise rates,” he said.

Indeed, without the need for unbudgeted calls, free reserves have increased by some 142% over this six-year period to a total of USD298.9 million and the Club’s investment portfolio has risen to USD569.3 million.  The average combined ratio over the period was 90.6%.  “This performance more than justifies the consistency of purpose portrayed by the Club with prudent underwriting over the long haul,” stated MacLeod.

Chief Executive Charles Hume emphasised the continued attraction to new members of Shipowners’ renowned commitment to the best interests of owners’ in the specialist vessel sectors.  “Notwithstanding the increased competition in our market the Club has continued its strong rate of growth adding 457 Members and 1,118 vessels, representing an increase in tonnage entered of 1.7 million GT, during the 2013 policy year.  This growth brings additional stability to the Club’s risk profile but also illustrates the ongoing appeal of the traditional virtues of a mutual Club – continuity, stability and security,” he stated.

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Notes for Editors:

The Shipowners’ Club is a mutual marine liability insurer, providing Protection & Indemnity insurance to small and specialist vessels since 1855. The Club currently insures over 33,000 vessels from more than 6,200 Members worldwide and is a member of the International Group of P&I Clubs.

The Club has branches in London and Singapore.  A copy of the 2014 Annual Report can be accessed here http://www.shipownersclub.com/media/529978/ar-2014-printable.pdf

Despite a continued upward trend in the cost of claims and additional reinsurance costs, The Shipowners’ Club, P&I insurance provider to the smaller and specialist vessel sector, is to raise premiums by just 5% for the 2014/15 renewal.

31st October 2013

Announcing its half year (2013/14) financial results Shipowners, which minimised its premium rise at the last renewal to a market low of 5%, will keep next year’s increase to a similar small rise.  In the P&I Club’s Half-year Report, issued yesterday, Chief Executive Charles Hume stated, “We appreciate that any increase is unwelcome and we recognise that it is necessary to achieve a balance between ensuring the long-term financial security of the Club and recognising the financial challenges faced by many Members in the current economic climate. As Members and brokers will be aware, our track record of general increases is the most competitive in the market and we intend to keep it that way.”

Highlighted in the half-year report is the continued growth in both premium and tonnage entered in the Club.  In the first six months of the trading year earned premiums are up some 11.5% at USD 120.3 million, of which USD 5 million represents new business over the same period, when compared to the previous year.  Vessel tonnage entered stands at 24.47 million GT, an increase of 18.6%.

As indicated, though, claims are also trending upwards both in frequency and value, net of reinsurance.  There was particular volatility in the second quarter with the impact from claims within the USD 1 to 5 million band having the most effect.

Charles Hume noted that these trends were consistent with reports from the market in general. “We will be monitoring the claims position for the third quarter very closely,” he commented.

The report shows that the Club remains in a strong financial position with a surplus of USD 1.1 million for the first six months and an increase in capital and free reserves to USD 276.7 million.  The combined ratio for the period is 98.4% against 95.5% for the full 2012/13 year; excluding some small improvements in back years the pure year combined ratio is 100.6%.

Hume continued, “The 5% general increase continues to include the increased costs of reinsurance. It is inevitable that these costs will rise again and, uniquely within the International Group, the Club is absorbing them within the general increase. We intend to utilise the Club’s very strong capital position for the benefit of the membership to ensure that the likely increase in reinsurance costs is mitigated.”

“We place the utmost value on the long-term relationships that we develop with our Members whose financial interests, we believe, are ultimately best served by the stability and continuity of entry with the Club,” concluded Charles Hume.  “In turn we thank both our Members and their brokers for their long-standing support.”

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Notes for Editors:

A pdf of the Half Year Report 2013/14 is available for download at

http://www.shipownersclub.com/publications/latest-publications

The Shipowners’ Club is a mutual marine liability insurer, providing Protection & Indemnity insurance to smaller and specialist vessels since 1855. The Club currently insurers over 33,000 vessels from more than 6,200 Members worldwide and is a member of the International Group of P&I Clubs.

The Club has offices located in Luxembourg, London, Singapore and Vancouver.

The Shipowners’ P&I Club, experts in the provision of liability insurance for specialist vessels, is on a mission to bring clarity to policy wordings; the in-depth knowledge accrued from its particular focus on certain sectors of the global fleet assists the Club in making insurance cover easier to understand.  To this end, the Club has recently published a clear outline of its Specialist Offshore Packages along with guidelines for owners and operators entitled ‘Know Your Cover’.

Over the last thirty years Shipowners has seen significant expansion in the offshore sector; these vessels (OSVs) have become larger and more sophisticated and their activities, for instance in dynamic support and construction operations, more complex.  The Club has never lost its focus in providing appropriate cover for such support vessels in the offshore oil and gas sector.  This specialist focus delivers to owners and operators an expert and dedicated underwriting and claims service.  The recently published guidelines which offer insight into the cover provided to OSVs, is further proof of this dedication.

“While other insurance providers have deviated towards offering cover to mobile offshore drilling rigs, platforms and floating production, storage and off-loading ships, Shipowners has remained focussed on the core business that it knows so well, the offshore support vessel sector,” says Commercial Director, Simon Swallow. “In addition, we are committed to making our policies accessible and intelligible.”

The Club has issued a series of publications to help this process; two policy documents dedicated to the Basic and Enhanced Specialist Offshore Packages; a brochure designed as a guide to these Packages and a detailed description of the Packages entitled ‘Know Your Cover’ in an easy-to-follow question and answer format.

The liability packages for OSVs have been structured with clarity in mind.  In addition to the traditional P&I liabilities associated with the operation of any commercial vessels, such as collision, pollution, crew and wreck liabilities, comprehensive cover can also be provided for contractual liability and third-party liability claims arising from specialist operations.

Finally, within the guide to liability packages, the Club has addressed the often challenging subject of naming a contractor or a charterer as an additional assured.   “This aspect has worried owners and their brokers for a number of years,” comments Ian Edwards, Shipowners’ Underwriting Director. “We have applied a simple, intuitive approach which will allow the Club to provide the cover that our Members and other contracting parties require, while also satisfying their charter party conditions.  We believe this will ultimately provide owners with the peace of mind that they seek from their P&I insurer.”

The various publications can be accessed via Shipowners’ website http://www.shipownersclub.com/vessel-type/offshore

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Notes for Editors:

The Shipowners’ Club is a mutual marine liability insurer, providing Protection & Indemnity insurance and associated covers to smaller and specialist vessels since 1855. The Club insures nearly 33,000 vessels from over 6,000 Members worldwide and is a member of the International Group of P&I Clubs.

The Club has offices in Luxembourg, London, Singapore and Vancouver.