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American Club experiences a positive 2021 P&I Renewal both Mutual and Fixed Premium sectors see increases in Revenue

American Hellenic Hull strengthens Balance Sheet and Key Financial Indicators

• Year-on-year annualized income for Club’s mutual P&I business increases by 8% at February 20.

• Year-on-year P&I tonnage increases by 5%.

• Funds under investment generate a 5.4% return for 2020, despite challenging market conditions

• Retained claims for 2020 tracking lower than 2019, but Pool exposures continue to climb.

• Eagle Ocean Marine grows revenue while maintaining solid profitability.

• American Hellenic Hull strengthens balance sheet and key indicators as pricing power persists.

NEW YORK, MARCH 16, 2021: At its meeting conducted virtually from New York last week, the Board of the American Club noted that, despite challenging business conditions, the Club enjoyed a solid performance over
the 2021 P&I renewal season. Both its mutual and fixed premium P&I portfolios performed well while American Hellenic Hull continued to consolidate its market position, gaining further momentum since the beginning of the year.

Year-on-year annualized premium for the Club’s mutual P&I class grew by a little under 8% at February 20, while revenue for its Freight, Demurrage and Defense (FD&D) business increased by over 10%.  Taking into account growth in the Club’s charterers’ business, total income on renewal is projected to be about 8% higher for 2021 by comparison with the previous year.

Premium attributable to renewing P&I entries for 2021 saw an increase, in cash terms, of approximately 5%, a rise in conformity with that ordered by the Board last November.  However, taking into account increases in deductibles, in some cases significant, and changes to other insurance conditions, the overall premium increase, as if expiring terms had applied, was closer to 7.5%.

Tonnage in the Club’s mutual P&I class increased by about 5% year-on-year, to approximately 18 million gt overall.  However, its Freight, Demurrage and Defense (FD&D) entries moved substantially higher in tonnage terms, by nearly 14%, to 12.2 million gt.  In addition, as mentioned above, there was an increase in daily tonnage on risk in regard to the Club’s charterers’ business.

As to the performance of its funds under investment, the Club enjoyed a 5.4% return over the year to December 31, 2020.  Although not as high as the previous year’s earnings, this was nonetheless a creditable result in view of the market uncertainties which characterized the period.

Retained claims for 2020 are emerging more favorably than those for 2019.  The latter year experienced several unusually large exposures below the pooling threshold, but has been able to take some benefit from reinsurance protection as a hedge against further deterioration.  Pool claims for 2020 are developing in an above-trend direction in a manner similar to the experience of 2018 and 2019.  Although the American Club, once again, had no claim on the Pool for its own account during the year, nor has had since 2016, its contributions to pooling continue to form a significant part of the Club’s overall claims exposure.

The American Club’s fixed premium brand, Eagle Ocean Marine (EOM), has continued to make progress into the beginning of 2021.  Premium for the 2020/21 policy period to date has grown by about 10% over the figure for the previous year at the same point, and is forecast to exceed $16.5 million in total for the current facility year, a record.

Aimed at the operators of smaller vessels in local and regional trades, with a substantial footprint in Asia, EOM continues to be a steady contributor to the American Club’s mutual membership, enjoying a cumulative combined ratio of about 75% since inception.  As the fixed premium P&I space continues to undergo transition and realignment, the attraction of EOM as a haven of stability, and the gold standard for service provision, will continue to energize its development.

American Hellenic Hull, the Club’s hull and war risks underwriting subsidiary, has continued to enhance its market position.  Preliminary results for the financial year to December 31, 2020 disclose a small loss for the year, similar to that for 2019.  However, against a background of robust premium pricing, the insurer’s balance sheet strengthened at year-end, net assets (equity) increasing by 29% by comparison with the previous year.

There were also improvements in several other key ratios at year-end 2020, including the insurer’s solvency capital requirement (SCR) at 130%.

American Hellenic Hull’s performance has gained yet further momentum into the early part of the current year, with vessels insured, underwriting income, operating profitability and balance sheet strength all maintaining an encouraging upward trajectory.

Commenting upon the confluence of these positive trends across the Club’s diversified portfolio of interests, Joe Hughes, Chairman and CEO of SCB, Inc., the Club’s managers, said:  “Although uncertain business conditions prevail in both the shipping and insurance sectors, the American Club’s recent experience has been encouraging.  The 2021 renewal of the Club’s mutual P&I and FD&D portfolios proceeded in a positive direction, while both EOM and American Hellenic Hull have performed with credit over recent months.

“Although we live in challenging times, my colleagues and I are certain that the difficulties of the present will generate opportunities for the future.  These opportunities will be found across the increasingly broad marine insurance landscape which the American Club, by virtue of its diversified capabilities, is richly equipped to develop over the years to come.”

Notes to Editors

The American Club

American Steamship Owners Mutual Protection and Indemnity Association, Inc. (the American 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.

The American Club has been successful in recent years 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 is able to provide local service for its members across all time zones, communicating in eleven languages, and has subsidiary offices located in London, Piraeus, Hong Kong, Shanghai and Houston, plus a worldwide network of correspondents.

The Club is a member of the International Group of P&I Clubs, a collective of thirteen mutuals which together provide Protection and Indemnity insurance for some 90% of all world shipping.

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.  Since it commenced underwriting in 2011, EOM has enjoyed considerable success in building a growing footprint in this specialist market and generating strong profitability for the Club.

American Hellenic Hull Insurance Company, Ltd. (AHHIC) is a wholly-owned, Solvency-II accredited hull and war risk subsidiary of the Club, based in Cyprus.  Since it began operating in mid-2016, AHHIC has enjoyed an increasing market presence coupled with growing premium volume and rising profitability.

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.

THE AMERICAN CLUB ANNOUNCES NEW APPOINTMENTS IN ITS MANAGERS’ PIRAEUS OFFICE

Andrew Dyer recruited from leading law firm Hill Dickinson as Regional Claims Director for EMEA and Global Claims Manager for Club’s Eagle Ocean Marine business, the latter in succession to Despina Beveratou

Niki Tiga becomes Club Correspondents’ Manager, also in succession to Beveratou who returns from London to Greece, and pastures new

NEW YORK AND PIRAEUS, MARCH 9, 2021:  Shipowners Claims Bureau Inc. (SCB), Managers of the American Club, has announced important new appointments in its Piraeus office to consolidate and enhance service to Club Members and EOM Insureds both regionally and across the world.

Andrew Dyer

Andrew Dyer, currently a partner in the Greek office of Hill Dickinson, a leading international law firm, will join SCB’s Piraeus office in early April as corporate Vice President.  He will undertake the role of Regional Claims Director for the American Club’s business in Europe, the Middle East and Africa (EMEA) with coterminous responsibility as Global Claims Manager for the Club’s Eagle Ocean Marine (EOM) facility.

A well-known figure within the maritime community, Mr. Dyer brings with him a wealth of professional experience gained from his more than twenty-five years as a solicitor and fourteen years as a partner of his firm.  During his long career, Mr. Dyer has been involved in the broadest range of casualty and contract work, and every type of shipping dispute, both wet and dry.

Niki Tiga

In another new appointment in Piraeus, Niki Tiga takes on the role of Club Correspondents‘ Manager.  Ms. Tiga has been part of the Club’s management team for some ten years, having started in the London office and having more recently moved to Greece.  Her educational background, together with her experience of both P&I and FD&D claims handling, give her an excellent platform from which to fulfill her new duties.

In welcoming Mr. Dyer, SCB also says farewell to Despina Beveratou who has to date fulfilled Mr. Dyer’s forthcoming responsibilities in regard to EOM in SCB’s London office, as well as Ms. Tiga’s new duties as Correspondents’ Manager.  Ms. Beveratou will be returning from London to Greece at the end of March to pursue new interests, and leaves with the best wishes of her colleagues for every future success.

Mr. Dyer’s connection with the American Club and its Managers is of some longstanding not only personally but also by virtue of Hill Dickinson’s own long history of providing legal services to the maritime community both in Piraeus and in other major shipping centers.

Indeed, in noting Mr. Dyer’s change of career, Jasel Chauhan, head of Hill Dickinson’s Piraeus office, commented:  “During his 25 years with Hill Dickinson, Andrew made an immense contribution and helped to forge some of our strongest relationships in the Greek market.  Andrew will be missed but the role with the American Club is a fantastic opportunity and we wish him all the best.”

In addition, Tony Goldsmith, master mariner and head of Hill Dickinson’s marine business group, said:  “We have always had an excellent relationship with the American Club – both in Greece and internationally.  Having worked alongside Andrew as a colleague and a friend during the whole of his career at Hill Dickinson, his move can only serve to affirm and enhance that relationship.  We very much look forward to working closely with the American Club and Andrew in his new role.”

In summing up these recent developments, Joe Hughes, Chairman & CEO of SCB, said: “We are delighted to be welcoming Andrew to our global management team where I am certain his expertise will be of incomparable value to both the American Club and EOM over the years ahead.  The warm words of farewell from Tony and Jasel speak to the legacy he leaves at Hill Dickinson and reinforce our confidence in Andrew’s continuing success in serving the Club and EOM in the future.”

“We also extend our congratulations to Niki on her appointment as Club Correspondents’ Manager.  I am certain that she will discharge her new duties with her characteristic intelligence and vigor.

“Finally, we are very sorry to be saying farewell to Despina.  Wherever her future endeavors may lead her, she departs with the best wishes of her colleagues in appreciation of her exemplary service over many years to the Club and EOM, and of the great energy and good humor she imparted to that service.”

The American Club announces Underwriting, Business and Development and Claims Handling appointments

Recent promotions of experienced personnel and a new recruit to strengthen the Club across many areas

NEW YORK, FEBRUARY 3, 2021: Shipowners Claims Bureau, Inc., Managers of the American Club, today announced recent appointments within their US-based teams to enhance service to Club Members both within the Americas and across the world.

Steve Ogullukian

Steve Ogullukian has recently been appointed as Deputy Global Underwriting Director, a position he assumes in parallel with his continuing duties as Director responsible for the Club’s reinsurance programs. He joined the Managers in 2003 during which time he has been principally engaged in the Club’s direct underwriting and reinsurance activity, with a particular focus on the latter. Since 2013, Steve has represented the American Club on the International Group’s Reinsurance Sub-Committee. He is a well-known and highly regarded figure both within the Club’s membership and among the international insurance and reinsurance communities.

Steve Lewis

Steve Lewis has been appointed as Business Development Director for the Americas in succession to Boriana Farrar. He joined the Managers some four years ago to augment their underwriting capabilities in North America and his twenty five years of marine insurance practice across a broad range of disciplines, together with his extensive network of professional contacts, have greatly enabled the expansion of the Club’s business.

Boriana Farrar is leaving the management company to become Chief Legal Officer for a leading Club Member in California. During her more than seven years’ service, Boriana gained distinction not only for her skills as a lawyer but also for her accomplishments on the business development front.

Jack Jowers

To further enhance the Managers’ claims handling capabilities in North America, Jack Jowers was recently recruited to join their Houston office as Assistant Vice President/Claims Executive. Jack brings with him broad experience of the maritime industry from operational, legal and insurance-related perspectives. His presence in Houston will add significantly to the services available to Members based in, or trading to, the Gulf of Mexico and its contiguous regions.

Speaking in New York today, Joe Hughes, Chairman & CEO of Shipowners Claims Bureau, Inc., the Club’s Managers, said:

“We are pleased to be announcing the recent appointments of Steve Ogullukian, Steve Lewis and Jack Jowers to their new roles in service of the American Club. We are certain that they will discharge their duties with conspicuous success in those roles. At the same time, we bid a most amicable adieu to Boriana with our best wishes for the future in her own new sphere.”

ENDS

Notes to Editors

The American Club

American Steamship Owners Mutual Protection and Indemnity Association, Inc. (the American 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.

The American Club has been successful in recent years 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 is able to provide local service for its members across all time zones, communicating in eleven languages, and has subsidiary offices located in London, Piraeus, Hong Kong, Shanghai and Houston, plus a worldwide network of correspondents.

The Club is a member of the International Group of P&I Clubs, a collective of thirteen mutuals which together provide Protection and Indemnity insurance for some 90% of all world shipping.

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.  Since it commenced underwriting in 2011 with its coventurers at Lloyd’s, EOM has enjoyed considerable success in building a growing footprint in this specialist market and generating strong profitability for both the Club and its co-insuring partners.

American Hellenic Hull Insurance Company, Ltd. (AHHIC) is a wholly-owned, Solvency-II accredited hull and war risk subsidiary of the Club, based in Cyprus.  Since it began operating in mid-2016, AHHIC has enjoyed an increasing market presence coupled with growing premium volume and rising profitability.

For more information, please visit the Club’s website http://www.american-club.com/

American P&I and American Bureau of Shipping (ABS) continues close collaboration on Loss Prevention initiatives

NEW E-LEARNING MODULE – CHEMICAL TANK – PROMOTES IMO BEST PRACTICES IN ACCESSIBLE FORMAT WITH ANIMATIONS BY IDESS IT

New York, October 27, 2020:  The close collaboration between the American P&I Club and ABS continues to deliver new loss prevention initiatives for the industry.

Leaders in their respective fields, the Club and ABS have worked together to produce a new e-learning module on chemical tanker operations, brought to life by state-of-the-art animations by IDESS IT, a frequent contributor to the American Club’s loss prevention capabilities.

The new e-learning module, entitled CHEMICAL TANK, has been developed in accordance with the IMO Model Course 1.03 Advance Training for Chemical Tanker Cargo Operations – 2016 Edition in compliance with the competency and knowledge requirements as contained in the 2010 STCW Code, Table A-V/1-1-3, Specification of minimum standard of competence in advanced training for chemical tanker cargo operations. It will form an important new addition to the American Club’s growing library of safety and environmental protection related materials.

This initiative is the latest development in an increasingly dynamic collaboration between the American Club and ABS in the field of loss prevention which has, in the recent past, embraced subjects as diverse as measures to prevent injury caused by slips, trips and falls, and the protection of vessels from cyber attack.

Speaking in New York, Dr. William Moore, SVP and Global Director of Loss Prevention at the American Club’s Managers, SCB Inc., said: “We are very pleased to be launching this important new e-learning tool for the promotion of best practices in the operation of chemical tankers. It is even more pleasing to be doing so in conjunction with our friends at ABS with whom we continue to develop new initiatives to enhance the safety of life and limb at sea, and the protection of the environment.”

“ABS is a leader in the classification of chemical tankers, so is uniquely well placed to work with the American Club to develop this industry leading training with the American P&I Club. Together, we are using our strong technical and sector knowledge to help drive safety performance in the industry,” said John McDonald, ABS Senior Vice President, Global Business Development.

Notes for Editors

About the American Club

American Steamship Owners Mutual Protection and Indemnity Association, Inc. (the American 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. The American Club has been successful in recent years in building on its U.S. 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 is able to provide local service for its members across all time zones, communicating in a large number of different languages, and has subsidiary offices located in London, Piraeus, Hong Kong, Shanghai and Houston, plus a worldwide network of correspondents. The Club is a member of the International Group of P&I Clubs, a collective of 13 mutuals which together provide Protection and Indemnity insurance for some 90% of all world shipping. For more information, please visit 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.

American Club Managers announce Senior Appointments in New York

Dorothea Ioannou becomes Deputy Chief Operating Officer and Mary (Molly) McCafferty appointed as Senior Vice President and Director of Claims for the Americas

New roles, and growing responsibilities of other senior managers, signify continuing development of key executive team

NEW YORK, JULY 15, 2020:  Shipowners Claims Bureau, Inc. (SCB), the Managers of the American Club, has announced senior appointments to its management team in New York. 

Dorothea Ioannou

Dorothea Ioannou takes on the role of Deputy Chief Operating Officer (DCOO) with immediate effect, and Mary (Molly) McCafferty becomes Senior Vice President and Director of Claims for the Americas as from the beginning of September.

A New York-lawyer by training, and a well-known figure within the global industry at large, Dorothea Ioannou began her career in marine insurance over twenty-two years ago.  She joined SCB’s Piraeus office in 2005, originally as a claims specialist, but quickly moving on to be its Managing Director.  She subsequently led the American Club’s business development activity, regionally at the outset and then globally over the next several years.  Since 2018 Ms. Ioannou has been the Managers’ Chief Commercial Officer.

Molly McCafferty is also a well-known and highly-regarded figure in the maritime community. Her wealth of experience is derived from a career which has included the practice of law, P&I club correspondency and senior executive positions with international shipping companies, most recently as general counsel to a leading operator in the bulk trades.

Molly McCafferty

A US attorney by training, Ms. McCafferty is admitted to the Bars of Connecticut and Florida. Among her many professional affiliations, she is a Member of the Society of Maritime Arbitrators its on its Board of Governors. She is also a Director of New York Maritime, Inc. (NYMAR). As a key member of the senior management team, Molly’s responsibilities at Shipowners Claims Bureau will include the supervision of all claims and related activities across the Americas, in regard to which she will report to Don Moore, Global Claims Director and Joanna Koukouli as his deputy in that role, as required.

As Deputy Chief Operating Officer, Ms. Ioannou will provide support to Vince Solarino, President and COO and, by extension, to Joe Hughes, Chairman and CEO.  Her duties will entail the day-to-day oversight of the Managers’ operating activities in their offices across the world, as well as involvement in the setting of management policy and global strategy in general. She will be supported by key members of the senior management team, each with increasing responsibility as the Club continues to develop its capabilities in fulfillment of its mission for the future.

Ms. Ioannou will relinquish her previous oversight of business development to Tom Hamilton who will now take on that assignment in conjunction with his existing duties as Chief Underwriting Officer, in which position he will continue to oversee underwriting strategy.  Arpad Kadi continues as Chief Financial Officer and Dan Tadros remains as Chief Legal and Compliance Officer.  Their responsibilities will continue to entail oversight, respectively, of the growing complexities of the financial landscape within which the Club operates and of the burgeoning legal and regulatory imperatives to which its business must increasingly be modeled.

Joe Hughes, Chairman and CEO of SCB, commented: “We are delighted to be welcoming Molly McCafferty to the management team at the beginning of September.  Molly will have an important role in the supervision of all claims and related activities across the Americas.  We are also delighted to announce the elevation of Dorothea Ioannou to Deputy Chief Operating Officer.  Dorothea has been a key member of the management team for some time now and has contributed greatly to the success of the American Club, and its other business lines, over recent years.  Her new duties will be of vital importance to the future of the Club in its operations across the world over the years ahead.

“As Dorothea transitions to her new role, and Molly assumes her new responsibilities, I am sure that everyone will wish to join me in wishing them both the very best of good fortune as a part of a dedicated, and developing, senior executive team.”

ENDS

Notes to Editors

The American Club

American Steamship Owners Mutual Protection and Indemnity Association, Inc. (the American 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.

The American Club has been successful in recent years 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 is able to provide local service for its members across all time zones, communicating in eleven languages, and has subsidiary offices located in London, Piraeus, Hong Kong, Shanghai and Houston, plus a worldwide network of correspondents.

The Club is a member of the International Group of P&I Clubs, a collective of thirteen mutual which together provide Protection and Indemnity insurance for some 90% of all world shipping.

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.  Since it commenced underwriting in 2011 with its coventurers at Lloyd’s, EOM has enjoyed considerable success in building a growing footprint in this specialist market and generating strong profitability for both the Club and its co-insuring partners.

American Hellenic Hull Insurance Company, Ltd. (AHHIC) is a wholly-owned, Solvency-II accredited hull and war risk subsidiary of the Club, based in Cyprus.  Since it began operating in mid-2016, AHHIC has enjoyed an increasing market presence coupled with growing premium volume and rising profitability.

For more information, please visit the Club’s website http://www.american-club.com/

American P&I Club and ABS Consulting Join Forces to Drive Cyber Awareness for Maritime Insurance

Collaboration between risk management and insurance sectors will focus on education, training and guidance to reduce maritime cyber risk

(Houston) – ABSG Consulting Inc. (ABS Consulting), a subsidiary of ABS focused on safety and risk management, and American Steamship Owners Mutual Protection and Indemnity Association, Inc. (the American Club) have joined forces to provide education, training and insurance guidance that address maritime cyber security.

As digital transformation in the maritime industry brings both opportunities and new challenges, owners and operators are relying more on smart technologies and operational data to drive decisions and run their businesses. Comprehensive cyber security programs are not only necessary to protect operations, but are also critical to protect the overall safety of crew and the environment. More frequent cyber attacks, increased digitalization and emerging global regulatory focus are adding to immediate demands to address and reduce cyber risk across the industry’s value chain. Cyber security has become a business imperative and new measures will have an impact on how maritime vessels and facilities will be covered by insurers.

“The safety and security of our members is a priority. Having a better understanding of the tools available, the programs that can be implemented and the integration of these in the marine industry will help us provide better services to shipowners and charterers globally,” says William Moore, Director of Loss and Prevention at the American P&I Club. The work we are going to do with ABS Consulting is going to help us identify how to enhance our policies, and the offerings we need to incorporate to improve the coverage and services we offer to our members.”

“Collaborating with the American Club to build education programs for their members and industry will give us a better understanding of the real challenges we are collectively facing,” says Ian Bramson, Global Head of Cyber Security of ABS Group. “This alliance enables us to develop the tools, training and services that support compliance and help ship owners and operators put protections in place to secure their vessels – from the design and construction phases through continuous operation over their service life.”

About the American Club

American Steamship Owners Mutual Protection and Indemnity Association, Inc. (the American 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. The American Club has been successful in recent years in building on its U.S. 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 is able to provide local service for its members across all time zones, communicating in a large number of different languages, and has subsidiary offices located in London, Piraeus, Hong Kong, Shanghai and Houston, plus a worldwide network of correspondents. The Club is a member of the International Group of P&I Clubs, a collective of 13 mutuals which together provide Protection and Indemnity insurance for some 90% of all world shipping. For more information, please visit 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.

About ABS Group

ABSG Consulting Inc. is part of ABS Group of Companies, Inc. (www.abs-group.com), a wholly owned subsidiary of ABS, one of the world’s leading marine and offshore classification societies. Through its operating subsidiaries, ABS Group provides data-driven risk and reliability solutions and technical services that help clients confirm the safety, integrity, quality and efficiency of critical assets and operations. Headquartered in Spring, Texas, ABS Group operates with more than 1,000 professionals in over 20 countries serving the marine and offshore, oil, gas and chemical, government and industrial sectors.

Eagle Ocean Marine (EOM) enters its tenth year of successful operations in the Fixed Premium P&I Sector

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.”

-ENDS-

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.

American Club conducts 2020 Annual Meetings virtually: Reports continuing progress across all business lines

IT and other management capabilities mobilized over recent months to secure unimpaired service in response to COVID-19 pandemic

  • American Club tonnage grows during 2019, premium remains flat
  • Eagle Ocean Marine enjoys steady expansion with continuing profitability
  • American Hellenic Hull reports increasing income and profits, buoyed by higher pricing
  • American Club investments generate a 10.6% in 2019, best in a decade
  • Modest decline in tonnage at 2020 renewal offset by 10% rise in premium per ton
  • Members’ risk profile improves again for 2020, encouraging positive claims outlook
  • Attritional losses stable in 2019, but incidence of larger claims increases
  • 2019 Pool claims develop at elevated levels similar to those of 2018
  • 2017 policy year closed without further call, release call margins for open years maintained
  • 2019 year-end GAAP free reserves grow by 20%, statutory surplus by 18%
  • As COVID-19 pandemic grips the world, IT and other capabilities mobilized to secure unimpaired service to all stakeholders
  • Early impact of COVID-19 muted, but longer-term market consequences uncertain
  • Annual Meeting of Members elects Mr. Weipeng Chen of CCCC International Shipping Corp., Mr. Emmanuel Michelakakis of Global Maritime Group, Inc., Mr. Leon Patitsas of Atlas Maritime, Ltd. and Mr. Joe Hughes of the Club’s Managers as new Directors
  • Annual Meeting of the Directors re-elects Mr. George D. Gourdomichalis and Mr. Robert D. Bondurant as Chairman and Deputy Chairman of the Board respectively
  • Joe Hughes retires as Club Secretary after 20 years’ service.  Ms. Dorothea Ioannou elected by Directors to that position as his successor
Ms. Dorothea Ioannou

NEW YORK, JUNE 19, 2020:  For the first time in its history, Members attending the American Club’s Annual Meeting in New York yesterday did so remotely, in a virtual format made necessary by the COVID-19 pandemic.  Despite the unusual circumstances, Members heard that the Club had made solid progress across all business lines over the previous twelve months, with 2020 having also started on a positive note.

While the shipping and insurance sectors had continued to experience headwinds in 2019, the American Club had nonetheless seen a modest growth in tonnage, although income had remained flat.  However, the Club’s fixed premium facility, Eagle Ocean Marine (EOM), aimed at the operators of smaller vessels in local and regional trades, had continued to expand its market share and revenue while maintaining respectable profitability.  Year-on-year premium growth had been in excess of 10%, while the facility’s cumulative combined ratio remained below 80%.

American Hellenic Hull, the American Club’s fast-growing, Solvency II-accredited hull and war risks underwriting subsidiary domiciled in Cyprus, had enjoyed conspicuous success during 2019, with rising revenue and profits buoyed by higher levels of market pricing.  This had continued with growing momentum into the opening months of the current year.  The company’s results as of end-May, 2020 indicated a year-to-date combined ratio of just over 90%, driven, among other factors, by a 29% increase in rates on renewing business.  Rising profitability was expected over the months ahead.

The American Club’s attritional exposures during 2019 had remained stable by comparison with the previous year, but the incidence of larger claims had increased over the period.  The experience of the International Group’s Pool in 2019 had been broadly the same as that of 2018, while the early development of exposures into 2020 suggested a continuation of the elevated level of losses which had characterized the two earlier years.  It was encouraging to note, however, that the Club’s retained claims had emerged in a relatively benign manner over the opening months of the current policy year.

The 2019 financial year had seen a 10.6% return on the Club’s investment portfolio, the best result in a decade.  This, together with a 48% increase in net premium and assessments earned by comparison with the previous year, some of which was attributable to supplementary calls for 2016 and 2017 (formally closed without further call at the meeting), and a 6% reduction in management overhead, had contributed to a year-end increase in the Club’s GAAP free reserves of 20%, in tandem with a rise of 18% in statutory surplus.

Having adopted a zero-general increase for the 2020 renewal, the American Club nevertheless experienced an increase in average P&I rates per ton of about 10%, albeit with a modest reduction in overall tonnage against a background of membership consolidation.  It was also encouraging to note that, partly in consequence of that consolidation, the risk profile of the existing membership had improved once again for 2020, implying a favourable claims outlook for the future.

The meeting was told that, in early 2020, the “lockdowns” precipitated in many parts of the world by the COVID-19 pandemic, together with their social, economic and political implications, had created new and unprecedented challenges for the American Club and its related businesses. 

Happily, with the active support of its Board, the Club’s Managers had been able to respond with agility to these new circumstances, adapting traditional modes of operation to take account of remote working in a virtual environment.  The Managers’ IT and other capabilities had been marshalled to considerable effect in responding to these new realities to secure unimpaired service to all the Club’s and EOM’s stakeholders.  The early impact of COVID-19 on the Club, EOM and American Hellenic Hull had been muted, but the longer-term consequences for the marine insurance sector at large remained uncertain.

At the Annual Meeting of the Members, Mr. Weipeng Chen of CCCC International Shipping Corp., Mr. Emmanuel Michelakakis of Global Maritime Group, Inc., Mr. Leon Patitsas of Atlas Maritime, Ltd. and Mr. Joseph Hughes of the Club’s Managers were elected as new Directors.  Messrs. Nicholas Tragakes and Mr. Lianyu Zhu retired from the Board at the meeting, and were thanked most warmly for their contribution to the Club’s affairs over their years of service.

The Board also noted with sadness the death, in April 2020, of Mr. Richard H. Brown, Jr.  Dick Brown was one of the leading maritime lawyers of his generation and had been a servant of the American Club for some forty years as General Counsel and, more recently, as a member of its Board.  He had participated in the affairs of the Club over much of its recent, transformational development in which he played an important role. He would be much missed by all who had been privileged to know him.

At the Annual Meeting of the Directors, which took place immediately after that of the Members, Mr. George D. Gourdomichalis of Phoenix Shipping and Trading S.A. and Mr. Robert D. Bondurant of Martin Resource Mgmt. Corp. were re-elected as, respectively, Chairman and Deputy Chairman of the Board.

At the same time, Mr. Joseph Hughes, Chairman and CEO of the Club’s Managers, Shipowners Claims Bureau, Inc., retired as Club Secretary after twenty years’ service in that role.  Ms. Dorothea Ioannou, Deputy Chief Operating Officer of the Managers, was elected Secretary in his stead.  In addition, Mr. Lawrence J. Bowles was re-elected as General Counsel.

Speaking in connection with the Annual Meeting, Mr. Gourdomichalis, the Club’s Chairman, said: “2019 was not an easy year for P&I underwriters.  In common with its counterparts elsewhere in the International Group, the American Club encountered headwinds in conducting its business and had to make difficult choices in several areas.  However, with the unwavering support of its membership, the Club was able to make solid progress in achieving many of its longer-term goals.  More recently, the challenges of the COVID-19 pandemic have caused the Club to adopt new and agile responses to the needs of its Members. We have weathered the storm with some success, I believe, and are well placed to exploit the post-pandemic insurance landscape of the future.”

Joe Hughes, Chairman & CEO of Shipowners Claims Bureau, Inc., the Club’s Managers, also commented: “2019 brought both challenges and opportunities for the American Club and its related businesses.  Attritional claims remained stable, but larger exposures continued to rise.  Premium pricing strengthened across all insurance lines.  Investment earnings were the best for a decade.  Difficult decisions to levy calls on earlier years were made to ensure continuing balance sheet strength.  Loss prevention initiatives multiplied.  The management team was strengthened through the acquisition of new, and redeployment of existing, professional talent. Both Eagle Ocean Marine and American Hellenic Hull performed conspicuously well.”

He continued: “The COVID-19 pandemic over recent months has generated an unprecedented mobilization of management resources, geared to entirely new ways of working, to secure unimpaired service to our stakeholders.  Despite the exigencies of the present, my colleagues and I look forward with optimism to the many opportunities for future growth and development which will gain further momentum when normal conditions return.”

ENDS

Notes to Editors

The American Club

American Steamship Owners Mutual Protection and Indemnity Association, Inc. (the American 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.

The American Club has been successful in recent years 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 is able to provide local service for its members across all time zones, communicating in eleven languages, and has subsidiary offices located in London, Piraeus, Hong Kong, Shanghai and Houston, plus a worldwide network of correspondents.

The Club is a member of the International Group of P&I Clubs, a collective of thirteen mutuals which together provide Protection and Indemnity insurance for some 90% of all world shipping.

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.  Since it commenced underwriting in 2011 with its coventurers at Lloyd’s, EOM has enjoyed considerable success in building a growing footprint in this specialist market and generating strong profitability for both the Club and its co-insuring partners.

American Hellenic Hull Insurance Company, Ltd. (AHHIC) is a wholly-owned, Solvency-II accredited hull and war risk subsidiary of the Club, based in Cyprus.  Since it began operating in mid-2016, AHHIC has enjoyed an increasing market presence coupled with growing premium volume and rising profitability.

For more information, please visit the Club’s website http://www.american-club.com/

American Club Urges Industry to Step Up Care of Seafarers Mental Health

Protection & Indemnity (P&I) insurers American Club and Eagle Ocean Marine issue advice on key action points that can immediately make a difference in a video log entitled ‘Seafarer Mental Wellness –  Five Things the Industry Can Do Now’.

NEW YORK, June 11, 2020

Continuing their commitment to supporting seafarers and ship owners in the challenging times precipitated by the COVID-19 pandemic, American Club and Eagle Ocean Marine (EOM) have made available key advice on maintaining seafarers’ mental health via a video log (Vlog).  It is available on the Club’s Youtube channel: https://youtu.be/GmFig5RjBVI

Joe Hughes, Chairman & CEO Shipowners Claims Bureau, Inc., Managers for the American Club, commented:

“Already of major concern to those involved in the shipping industry, the condition of seafarers’ mental well-being has become more critical during the COVID-19 pandemic.  Since the outbreak of the pandemic we, at the American Club and Eagle Ocean Marine, have attempted to bring the need for action to the attention of owners, managers and authorities alike.”   

“We expressed our, as well as our Members’ and business partners’ support for all mariners through our ‘Weathering the Storm’* video last month, and now want to inject some practical advice into what has become a global, industry-wide campaign.”

Using the most accessible and expressive of channels of communication to deliver its advice the ‘Seafarer Mental Wellness – Five Things the Industry Can Do Now’ Vlog is presented by the Club’s Managing Director in Hong Kong, Chris Hall with clarity and relevance to the current situation.

 “The crucial aspect of ameliorating the plight of many seafarers suffering from depression and anxiety is a clear understanding of the problem and taking straightforward and effective action,” he said. 

 Mr. Hall continues, “Even before the pandemic took hold, an ITF survey, in collaboration with Yale University, identified that 20% to 25% of seafarers were suffering from some form of mental ill-health.  COVID delays in crew changes have been well documented. Unexpected extensions to contracts and voyages have exacerbated the problem. This was the primary reason, the same survey concluded, for higher levels of anxiety and depression.”

The Vlog contains five key actions, which start with simple recognition of the situation, without which nothing effective can be achieved, and go on to proffer advice on prioritizing the provision of assistance to crew members through counselling; encouraging on-board social activity, communication and mutual understanding; widespread adoption of anti-virus best practice to engender a sense of control; and consultation with seafarers in preparing mental wellness policies and programs.

“Practical engagement with our owners and the crew members who work with them in response to critical issues has always been the approach of the American Club and EOM.  We hope the preparation of this Vlog, and others that we plan for the future, given the face-to-face nature of the information delivery that it affords, will help bring more effective care for seafarers in the future,” concluded Hughes.

The Club is providing constantly up-dated advice to its Members and those insured by EOM on issues related to the COVID-19 pandemic.  This addresses a variety of concerns that owners have expressed including the welfare and protection of their workforce.  The dedicated webpage can be accessed here  https://www.american-club.com/page/COVID-19

*https://www.youtube.com/watch?v=MVTBZ0v1w4Q

Notes to Editors

The American Club

American Steamship Owners Mutual Protection and Indemnity Association, Inc. (the American 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.

The American Club has been successful in recent years 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 is able to provide local service for its members across all time zones, communicating in eleven languages, and has subsidiary offices located in London, Piraeus, Hong Kong, Shanghai and Houston, plus a worldwide network of correspondents.

The Club is a member of the International Group of P&I Clubs, a collective of thirteen mutuals which together provide Protection and Indemnity insurance for some 90% of all world shipping.

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.  Since it commenced underwriting in 2011 with its coventurers at Lloyd’s, EOM has enjoyed considerable success in building a growing footprint in this specialist market and generating strong profitability for both the Club and its co-insuring partners.

American Hellenic Hull Insurance Company, Ltd. (AHHIC) is a wholly-owned, Solvency-II accredited hull and war risk subsidiary of the Club, based in Cyprus.  Since it began operating in mid-2016, AHHIC has enjoyed an increasing market presence coupled with growing premium volume and rising profitability.

For more information, please visit the Club’s website http://www.american-club.com/

AMERICAN CLUB AND EAGLE OCEAN MARINE ISSUE VIDEO HONORING SEAFARERS

“Weathering the Storm” salutes heroes of the sea in turbulent times

NEW YORK, MAY 20, 2020:  The American Club and Eagle Ocean Marine (EOM) have produced a video entitled ‘Weathering the Storm’ which salutes the service of seafarers in these turbulent times as they seek to protect themselves in their vital work, at sea and in port, against the ravages of COVID-19.

The video can be accessed here: https://www.youtube.com/watch?v=MVTBZ0v1w4Q

Joseph E.M. Hughes, Chairman & CEO Shipowners Claims Bureau, Inc., Managers for the American Club said:

“As seafarers labor in their essential role of enabling global trade, they must now confront the perils of the present pandemic, such as isolation, with the same composure as that with which they traditionally confront the perils of the sea.

In this presentation we honor these heroes of the sea as they weather the storm during the COVID-19 crisis and continue with the vital role they play on the frontlines of the global economy.”

The Club is providing constantly up-dated advice to its Members and those insured by EOM on issues related to the COVID-19 pandemic.  This addresses a variety of concerns that owners have expressed including the welfare and protection of their workforce.  The dedicated webpage can be accessed here  https://www.american-club.com/page/COVID-19

The video has been compiled with the generous cooperation of crews currently serving on vessels owned by Members of the Club, those insured by EOM and other business partners.  A roll call of these organisations can be found below

Notes to Editors

The American Club

American Steamship Owners Mutual Protection and Indemnity Association, Inc. (the American 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.

The American Club has been successful in recent years 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 is able to provide local service for its members across all time zones, communicating in eleven languages, and has subsidiary offices located in London, Piraeus, Hong Kong, Shanghai and Houston, plus a worldwide network of correspondents.

The Club is a member of the International Group of P&I Clubs, a collective of thirteen mutuals which together provide Protection and Indemnity insurance for some 90% of all world shipping.

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.  Since it commenced underwriting in 2011 with its coventurers at Lloyd’s, EOM has enjoyed considerable success in building a growing footprint in this specialist market and generating strong profitability for both the Club and its co-insuring partners.

American Hellenic Hull Insurance Company, Ltd. (AHHIC) is a wholly-owned, Solvency-II accredited hull and war risk subsidiary of the Club, based in Cyprus.  Since it began operating in mid-2016, AHHIC has enjoyed an increasing market presence coupled with growing premium volume and rising profitability.

For more information, please visit the Club’s website http://www.american-club.com/

With thanks to the following for their cooperation: Andrew Moore & Associates ; Beacon Marine ; China Communication Construction Co. Ltd ; Concord Marine ; Constellation Marine Services ; Denmarex ; Eurotankers Inc. ; Evdemon & Partners ; Henderson International Group ; Highend Maritime Consultant ; IMCS Med; K’s Associates ; Kozen Marine Survey ; Meratus Advance Maritim ; National Survey Joint-Stock Company ; New Legend International Marine Co., Ltd ; New Legend International Marine Co., Ltd ; Orient Marine Services ; Patriot Contract Services, LLC ; Patriot Contract Services, LLC ; Protis Surveys ; Quest Marine Services ; Sealift Inc; Seamen’s Church Institute ; Waruna Nusa Sentana ; Wei Xu Investment Holdings Ltd ; Winson Group