“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

BOTH MUTUAL AND FIXED PREMIUM SECTORS RECORD CREDITABLE PERFORMANCES

AMERICAN HELLENIC HULL SEES SHARP INCREASES IN PREMIUM AND PROFITABILITY

RECENT RESULTS AUGUR WELL FOR FORTHCOMING YEAR AND BEYOND

• Year-on-year premium revenue across Club’s mutual business remains flat at February 20.

• Average rate per gross ton for Club’s mutual P&I business increases by 10% for 2020.

• Year-on-year tonnage across Club’s mutual business declines by about 9% overall.

• Loss ratio on continuing business improves yet again, implying favorable claims outlook.

• Funds under investment generate a 10.6% return for 2019, best in a decade.

• 2019 financial year surplus forecast to grow by over 20% over previous year-end.

• Free reserves per ton expected to show considerable increase into first quarter of 2020.

• Retained claims for 2019 track higher than 2018, while Pool exposures remain above trend.

• Eagle Ocean Marine continues to make excellent progress in fixed premium sector.

• American Hellenic Hull’s impressive 2019 results gain further momentum as 2020 begins.

• Club sees bright future of expanding opportunities across all lines of business over the years ahead.

NEW YORK, FEBRUARY 24, 2020:  Despite challenging conditions in both the shipping and insurance sectors, the American Club enjoyed a solid performance over the 2020 P&I renewal season.  Both its mutual and fixed premium P&I portfolios acquitted themselves well, while American Hellenic Hull has continued to grow its premium and profitability, gaining yet further momentum since the beginning of the year.

Year-on-year premium for the Club’s mutual P&I class remained flat, while a small decline in revenue for its Freight, Demurrage and Defense (FD&D) business was matched by a commensurate increase in premium for charterers’ entries, so that total income on renewal will be virtually identical for 2020 to that of the previous year.

Premium attributable to renewing P&I entries for 2020 saw an increase, in cash terms, of approximately 1.5%.  However, taking into account increases in deductibles, in some cases significant, the modification of terms applying to the application of deductibles generally, and changes to other insurance conditions, the overall premium increase, as if expiring terms had prevailed, was closer to 5%.

Tonnage in the Club’s mutual P&I class declined by about 9% to approximately 17 million gt overall.  Its Freight, Demurrage and Defense (FD&D) entries also moved lower somewhat in tonnage terms, again by about 9%, to 10.7 million gt but, as mentioned above, almost all of this was offset by an increase in daily tonnage on risk in regard to the Club’s charterers business.

However, in consequence of the countervailing trends described above, and notwithstanding the Club’s decision not to apply a standardized, or general, increase for 2020, average P&I rates per ton on mutual business increased by about 10% year-on-year, an encouraging sign for the future.

The Club’s P&I business renewing into the 2020 policy year enjoys a trailing five-year loss ratio of only 41% compared with 48% twelve months earlier.  This suggests a positive trend for future losses, as an improving profile for continuing Members can be expected to moderate prospective exposures over the years ahead.

As to the performance of its funds under investment, the Club enjoyed a 10.6% return over the year to December 31, 2019, the best result in a decade.

Retained claims for 2019 are not emerging as favorably as they did in 2018, although they remain largely within the original budget set for the year.  Pool claims for 2019 are developing in an above-trend direction, similar to that for 2018, notwithstanding that the American Club, once again, had no claim on the Pool for its own account during the year.

Although the American Club’s year-end 2019 financials remain to be formally concluded, preliminary indications point to the positive development of certain important metrics.  Surplus is expected to grow by more than 20% by comparison with the previous year.  Free reserves per ton for 2020 are also forecast to rise, being likely to settle in the area of $4.15 on a statutory basis within the first quarter of 2020.

The American Club’s fixed premium brand, Eagle Ocean Marine (EOM), has continued to make progress into the beginning of 2020.  Premium for the 2019/20 policy period to date has grown by 23% over the figure for the previous year at the same point and is forecast to exceed $14.5 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 77% 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 performed conspicuously well over the past twelve months.  Preliminary results for the financial year to December 31, 2019 disclose sharp increases in both revenue and profitability, buoyed by higher levels of market pricing.

Earned premium grew by about 90% over the previous year to approximately $16.7 million in 2019, while pure underwriting profit rose by about 400% to $3.6 million.  The bottom-line result for 2019 was marginally below break-even, a notable improvement on the comparatively small, but inevitable, losses sustained during the company’s start-up period.

Indeed, the strong earnings generated by American Hellenic Hull in the second half of 2019 have gained yet further momentum into the early part of the current year, with tonnage insured, underwriting income, operating profitability and balance sheet strength all maintaining an impressive upward trajectory.

Commenting upon the confluence of these positive trends across the American Club’s diversified portfolio of interests, Joe Hughes, Chairman and CEO of SCB, Inc., the Club’s managers, said:  “Although difficult business conditions prevail in both the shipping and insurance sectors, the American Club’s recent experience has been highly encouraging.  The 2020 renewal of the Club’s mutual P&I and FD&D entries proceeded in a very respectable direction, while both EOM and American Hellenic Hull have performed with real distinction over recent months.

“My colleagues and I see exciting prospects ahead of us.  We live in challenging times, but we 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 now 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 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/

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.

ABS, The American Club, and Lamar University Call for Better Maritime Injury Reporting 

(HOUSTON) ABS, the American Club, and Lamar University (Lamar) are calling on industry to advance the cause of safety at sea with more comprehensive reporting requirements for injury and near miss reporting.

The call follows an industry-wide project analyzing more than 12,000 injury records with a financial cost of $246m and a further 100,000 near miss reports from the ABS and Lamar Mariner Safety Research Initiative (MSRI) and nearly a decade of data from the American Club. 

The research offers unprecedented insight into the nature of accidents at sea but inconsistent data along with a lack of consistency and comprehensiveness have led the American Club, ABS, and Lamar to urge industry to adopt a comprehensive new standard for maritime injury reporting.

“Nothing is more important to ABS than the safety of the men and women working at sea. This project offers a deeper insight into how and where seafarers are being injured and also highlights what industry can do to take our understanding of safety to the next level,” said Christopher J. Wiernicki, ABS Chairman, President and CEO.

The research reveals how injuries sustained while lifting or in slips, trips/falls are the most frequent incidents at sea, with more than 1,300 incidents in this study’s dataset. According to the American Club data, these incidents cost in excess of $85m for the six-year period studied. The average cost per incident exceeds $65,000: lifting incidents averaged $48,000; falls and trips averaged $88,000; slips averaged $56,000. Looking at costs and anatomical locations, the two most costly body locations were the head and neck, averaging just over $100,000 per incident followed by the back and torso at $66,000.

Joseph Hughes, the Shipowners Claims Bureau’s Chairman and Chief Executive Officer, “Shipping is currently navigating through a digital era in which asset owners are increasingly able to use the power of operational data to predict potential failures. As those capabilities grow, the industry would be well counselled to also get ‘smarter’ about how it compiles and uses its safety data.”

“This industry, academic, and class partnership provided valuable insight into the financial impact of injuries across the maritime industry. This is another tool to help provide better solutions to help prevent the occurrence and reoccurrence of maritime injuries. We all believe that this partnership will help improve the welfare of the maritime industry’s most valuable asset: its seafarers,” said Dr. Brian Craig, Lamar University, Dean of Engineering and Co-Director of the Mariner Safety Research Initiative.

A PDF of the report accompanies this press release.

ENDS

About ABS

ABS, a leading global provider of classification and technical advisory services to the marine and offshore industries, is committed to setting standards for safety and excellence in design and construction. Focused on safe and practical application of advanced technologies and digital solutions, ABS works with industry and clients to develop accurate and cost-effective compliance, optimized performance and operational efficiency for marine and offshore assets.

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 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, Houston, Piraeus, Hong Kong and Shanghai, 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.

About Lamar University
Home to more than 15,000 students, Lamar University (LU), near Houston in Beaumont, Texas, is among the state’s fastest growing colleges and universities, and is a member of The Texas State University System. LU offers more than 100 programs of study leading to bachelors, masters and doctoral degrees.

The university has been nationally recognized for the quality of its core curriculum and the diversity of its student body. LU stresses academic achievement by emphasizing hands-on learning at all levels, providing ample opportunities for undergraduate research and supporting an excellent Honors Program. The university is accredited by the Commission on Colleges of the Southern Association of Colleges and Schools. Several LU colleges and programs hold additional specialized accreditations, including the five undergraduate engineering programs in the College of Engineering. LU also is home to the many unique programs including the Center for Advancements in Port Management, the Center for Innovation, Commercialization and Entrepreneurship, and the Mariner Safety Research Initiative.

• Recent trends and future outlook extensively reviewed.

• Recent balance sheet strengthening normalizes key financial indicators.

• No standardized, or general, increase for 2020, but properly calibrated risk pricing mandated for renewal.

• Eagle Ocean Marine fixed premium facility maintains steady growth and profitability.

• American Hellenic Hull see excellent outlook as market provides strong impetus on pricing.

• Recent augmentation of Managers’ professional resources enhances service capabilities.

• Marine insurance sector at large suggested to be at secular inflection point.

• Club sees outstanding prospects across all lines as industry evolves favorably for quality insurance providers.

NEW YORK, LONDON AND ATHENS, THURSDAY DECEMBER 5, 2019:  The American Club recently made market presentations to its considerable constituencies of Members, brokers and other friends and supporters in both London and Athens.  Its gathering in London on December 3 was hosted at Trinity House, while its reception in Athens on December 5 took place at the Yacht Club of Greece in Piraeus.

The presentations provided a full spectrum of up-to-date information concerning the Club’s mutual and fixed premium business.  They also included a report on recent developments at American Hellenic Hull Insurance Company, Ltd., a Cyprus-based subsidiary of the Club and a leading hull and war risks underwriter with a growing portfolio of high-quality international clients.

Those present at both events heard how the Club’s recent decisions in regard to supplementary calls were aimed at balance sheet strengthening and the normalization of key financial indicators.  For the 2020 renewal, although no standardized, or general, increase was being sought by the Club, its Board expected to see a year-on-year increase in the pricing of risk for 2020 of a magnitude reflecting future exposure.  This policy was intended to embrace not only the need for cash rises but also, as individual cases might dictate, changes in deductibles and/or other terms of entry.

Eagle Ocean Marine, the American Club’s fixed premium product aimed at the operators of smaller vessels in local and regional trades, continued to exhibit both solid growth and respectable profitability.  Against a background of upheaval in recent times among other insurers in this space, Eagle Ocean Marine was now widely regarded as a haven of acknowledged quality to those seeking a gold standard of coverage and service.

In explaining the background to recent developments at American Hull Insurance Company, Ltd., its CEO, Mr. Ilias Tsakiris, pointed to the steady development of its business plan which continued to see an expanding client base and rising premium rates.  The hardening of the market over the past twelve months had given further impetus to American Hellenic Hull’s financial development and, most importantly, growing profitability during the second half of the year.  This was an encouraging sign both for the hull underwriter itself and for the contribution it made to the American Club’s business.  There was every reason to expect continuing success into 2020 and beyond.

In addition to Mr. Tsakiris, Mr. Vince Solarino, President and Chief Operating Officer of SCB, Inc., the Managers of the American Club, and Ms. Dorothea Ioannou, SCB’s Chief Commercial Officer, also described recent operational changes which had been made within the Managers’ offices across the world.  Specifically, they referred to the augmentation of the Managers’ capabilities through the reorganization of their existing resources, the recruitment of new professional talent, both at headquarters and overseas, and other initiatives aimed at securing further success over the years ahead.

Mr. Joe Hughes, Chairman and CEO of SCB, Inc., noted that 2020 would mark the twenty-fifth anniversary of the implementation, in 1995, of the American Club’s strategy of growth and diversification, then entitled Vision 2000.  Over the intervening years, and through several business cycles, the Club had been successful in building a market presence and range of proficiencies exponentially greater than those it possessed when that strategy began.  This augured very well for the future.

In reviewing trends affecting not only P&I but the market at large, Mr. Hughes said that the “great claims moderation of recent years” had ended.  Premium erosion continued to challenge operating results while the solid investment returns for 2019 – at least as experienced by the American Club – would be challenged by a cloudy outlook for 2020.

Mr. Hughes continued: “An urgent need has arisen for the proper calibration of risk pricing to exposure.  With the landscape at Lloyd’s and elsewhere undergoing transformational change, it appears that the marine insurance sector has reached a secular inflection point.  Indeed, the market upheavals of the last twelve months have left much of the industry in a state of flux.  But, however this might be characterized, there can be no doubt that recent turmoil foreshadows extraordinary potential for the future.

“The American Club, across all its business lines, has achieved much in recent years and great opportunity lies ahead.  The Club, Eagle Ocean Marine and American Hellenic Hull are poised to exploit a newly emerging business landscape, Eagle Ocean Marine as a haven of acknowledged quality within its sector and American Hellenic Hull fortified by its increasing profitability and excellent outlook.  Above all, service to Members, insureds, brokers and the many other stakeholders in our business will be of paramount importance.  Staying ahead of this curve of expectation will remain a critical imperative.

“Despite recent challenges, and those which the future will inevitably bring, the Club, Eagle Ocean Marine and American Hellenic Hull can justifiably look forward to excellent prospects of unsurpassed potential across all business lines as the industry evolves over the years ahead.”

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. 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.

NEW YORK, NOVEMBER 15, 2019:  The American Club has just announced its intentions for the 2020 renewal, provided information on, and taken action in regard to, the development of its recent policy years, and commented on its broader market position – and aspirations – following a recent meeting of its Board of Directors in New York.

In a November 14 circular to its Members, the American Club notes that, in addition to the expansion of its core mutuality, its Eagle Ocean Marine fixed-premium facility (which continues to grow its market presence), as well as its investment in American Hellenic Hull (which over recent months has moved into encouraging profitability), have given the Club a broadly-based industry footprint, well–positioned to exploit the opportunities of the future.  In conjunction with this, the American Club has also benefited from the augmentation of its Managers’ capabilities through the reorganization of its existing resources, the recruitment of new professional talent and other initiatives aimed at securing the promise of further success over the years ahead.

The Club also notes that the P&I market is in a period of transition, characterized by a new reality of persistently low premium pricing, rising claims and the likelihood of less ample future investment returns (although the American Club did in fact enjoy an excellent year-to-date return on its investment portfolio of just under 9% as of the end of October).

Nevertheless, taking these and other factors into account, the Club’s Board has resolved to apply no standardized, or general, increase for 2020.  However, Members’ premium rating and terms of entry for the forthcoming year will be calibrated to their own particular circumstances, including their loss records, vessel-type, trade and regional factors, as well as other relevant matters, including the assessment of Members’ individual risk profiles.

This approach allows for a more Member-specific treatment of pricing and terms of cover.  However, to embrace the more hostile trends developing in the claims environment, and a possibly less benign investment climate going forward, your Board expects to see a year-on-year increase in the pricing of risk for 2020 of a magnitude which properly reflects future exposures.  This intended adjustment upward will embrace not only the need for cash rises but also, as individual cases might demand, changes in deductibles and/or other terms of entry.

However, the Club’s Board has also taken the view that, in order to optimize its future prospects, the Club needs to strengthen its financial position generally.  It has determined to do this by making supplementary calls of 22.5% of estimated total premium in regard to the 2016 policy year and 17.5% for 2017, both years having been financially challenged by the untypically adverse recent development of certain large claims, both for the Club’s own account and within the Pool.

The decision to seek these calls was motivated by the view of the Club’s Board that those years should be treated on a stand-alone basis, rather than be subsidized by the Club’s contingency fund which had in fact increased by about 15% over the nine months, to September 30, 2019.

It was also noted that these calls would only apply to the Club’s P&I (Class I) business and not to its Freight, Demurrage and Defense (Class II) entries.  In this connection, the 2016 year will be formally closed as of September 30, 2019, with 2017 being slated for closure in early 2020, the release call margin for that year being reduced to 5% of estimated total premium over the intervening period.

Announcing this news, the American Club’s Chairman, George D. Gourdomichalis of Phoenix Shipping & Trading S.A., made the following comments:  “My fellow Directors and I are aware that certain elements of the American Club’s intended future action will not be welcome, but the Board remains resolute in its commitment to consolidate the financial standing of the Club in order to provide a firm footing for the exploitation of the exciting prospects for its core and related businesses over the years ahead.

“Much has been achieved recently and, as the American Club transitions, in many and different ways, to fulfill its aspirations for the future, your Board is determined that it does so in a financial condition equal to the challenges, and opportunities, which lie ahead.”

Speaking in conjunction with Mr. Gourdomichalis, Joe Hughes, Chairman and CEO of SCB, Inc., the Club’s Managers, said:  “2020 will mark the twenty-fifth anniversary of the implementation, in 1995, of the American Club’s strategy of growth and diversification, then entitled Vision 2000.  Over the intervening years, and through several business cycles, the Club has been successful in building a market presence and spectrum of proficiencies exponentially greater than those it possessed when the strategy began.

“Over the last decade, in parallel with the experience of the American Club itself, the marine insurance market in general, and the P&I sector in particular, have undergone great change.  The American Club has not been immune to the deteriorating operational results which have characterized the industry at large over the past eighteen months.  However, despite the financial challenges which this brings, and which the recent action taken by the Board is intended to remedy, the progress made by the American Club and its related businesses in the recent past has given it an excellent point of departure for future success, particularly as the climate for marine insurers may be expected to improve over the months and years ahead.”

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.

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.

• Bunker Operations Best Practice Animations
• Club Circulars and Alerts on Bunker Fuels
• Information Regarding the Collapse of OW Bunker Group
• Club Presentations on Bunker Fuels

NEW YORK, 8 OCTOBER, 2019:  The American Club has released its latest loss prevention guidance, Bunkering – A Compendium, together with website access to a comprehensive approach to loss prevention initiatives demanded by new regulations and generally by supplying guidance on operations and management.

The Compendium is intended to give guidance not only in respect of issues arising from the new MARPOL regulations coming into effect on January 1, 2020, but also in regard to best practice generally in the conduct of bunkering operations.

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

“The risks shipowners face in regard to bunker fuels can have a significant impact and we have now produced this guide to assist Members in addressing bunker fuels related matters by providing a comprehensive approach to loss prevention, both ashore and afloat, aimed at obviating exposures with both P&I and FD&D insurance implications. The guide and all accompanying information can be accessed from one page on our website.”

The Compendium, its companion animations and other guidance documents can be found on the Club’s website at: https://www.american-club.com/page/bunker-fuels

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.

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

Potential increased physical risks outlined together with suggested preventive measures

NEW YORK, NY, SEPTEMBER 3, 2019: The American P&I Club and its Managers, Shipowners Claims Bureau, Inc. (SCB), have issued a circular on August 30 to their Members for them to consider all implications for ships in northern hemisphere areas that may be subject to hurricanes, typhoons or cyclones.

Joe Hughes, Chairman and CEO of SCB, Inc. and Eagle Ocean Agencies, Inc., managers of the American Club and EOM respectively, commented:

“In view of the subject’s somewhat grim topicality given the impending arrival of Hurricane Dorian on the southeast coast of the United States, your Managers believe there is merit in repeating the contents of that Alert in relation both to Dorian in particular and to such weather conditions in general, since the peak season for hurricanes, typhoons and cyclones in the northern hemisphere occurs between July and October.”

Members were referred to the circular originally distributed on September 14, 2018, that alerted vessels trading in regions affected by extreme weather events to the possibility of being exposed to additional physical risks, including:

1. changes in currents and tides, particularly in rivers, occurring more rapidly and unpredictably than normal;
2. increased loads on mooring lines;
3. increased risk of contact with craft, debris and other objects which may have broken loose from moorings, or otherwise become present, in rivers and ports;
4. increased risk of damage caused by storm surges; and
5. increased silting of berths creating reduced under-keel clearance.

Given these risks, vessels’ masters have been advised to exercise elevated alertness, and be prepared to deploy preventive measures, including:

1. increasing the number of mooring lines deployed up river. If the leads from the vessel are suitable, additional breast lines should be used to keep the vessel against the berth;
2. ensuring brake settings are correct, and ensuring that crew members monitor ropes during ebb tides, and when other vessels pass downstream;
3. maintaining engines in a ready state to be used immediately if required;
4. ensuring that cargo cranes are centerlined, two blocked and secured;
5. ensuring that cargo ramps are stowed away from potential storm surges, and closely monitored;
6. monitoring by vessel personnel of pier sides to obviate the possibility of the vessel causing damage to piers, and to check whether pier bollards are capable of handling the higher stresses on mooring lines;
7. where possible, the taking of photographic evidence of the condition of a berth before and after storm periods;
8. seeking advice from river and mooring pilots about any particular risk factors relevant to the characteristics of the berth to be used by the vessel, and the characteristics of local river transit;
9. corresponding with local agents to provide details of last soundings at berths to give owners/managers/masters advance information on local conditions.

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.

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.

One appointment in the London office and two in Hong Kong

________________________________________________________________________

NEW YORK, NY, AUGUST 28, 2019: In a circular to Members of the American P&I Club, its Managers, Shipowners Claims Bureau, Inc. (SCB), have today announced that Arsinoi Iliokaftou has been appointed Claims Executive in London, to add further strength to its existing capabilities in the claims liaison sphere, whilst in the Managers’ Hong Kong office, Vicky Cheng and Joe Wan have been appointed as Business Development Executives – Asia to assist in the Club’s and Eagle Ocean Marine (EOM)’s initiatives in this key region of their global activity.

Arsinoi Iliokaftou is a fully-qualified Greek lawyer, as well as holding a master’s degree in maritime law from the City University in London, and is in the process of qualifying as an English solicitor; she is also a Member of the Institute of Chartered Shipbrokers of the United Kingdom. Prior to joining the management team, Arsinoi worked for several years in the London office of another Group club. In addition to her academic and professional qualifications, Arsinoi has extensive practical experience of claims matters of all kinds from every part of the world.

Having gained under- and post-graduate degrees at Shanghai Maritime University, Fudan University, and the Hong Kong Polytechnic University in disciplines ranging from international economics to trade policy and transport logistics, Vicky Cheng served most recently as client manager in the marine department of a major international insurance broker in Hong Kong. Her technical knowledge of the shipping business, coupled with her marine insurance experience, will lend impetus to the Club’s and EOM’s outreach to Members, Insureds, brokers and prospects throughout Asia.

Holding bachelor and master’s degrees in law from the East China University of Political Science and Law and the City University of Hong Kong, Joe Wan also has significant marine insurance experience derived from his previous employment at a leading specialist broker in Hong Kong during which he handled many lines of marine business. As in the case of his colleague Vicky, Joe’s appointment will add considerable strength to the Club’s and EOM’s commercial and developmental capabilities over the months and years ahead.

Joe Hughes, Chairman and CEO of SCB, Inc. and Eagle Ocean Agencies, Inc., managers of the American Club and EOM respectively, commented:

“We are delighted to welcome a group of outstanding professionals to both the American Club’s and EOM’s global teams. My colleagues and I are certain that Arsinoi, Vicky and Joe will add great momentum to the Club’s and Eagle Ocean Marine’s continuing success in growing its market footprint throughout the world, adding value as they do so to the Club’s and EOM’s commitment to service to its Members, insureds and their intermediaries.”

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.

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.

Recent promotions and the acquisition of new talent strengthen and expand service capabilities

Growing premium and market share, coupled with continuing profitability, augur well for the future

NEW YORK, AUGUST 1, 2019: Eagle Ocean Marine (EOM), the American Club’s fixed premium P & I and FD & D facility, recently completed another year of steady growth and solid profitability. It has also renewed its reinsurance program for another twelve months from July 1 on favorable terms at Lloyd’s. Its consistently strong operating performance, together with an established reputation for service excellence, augur well for EOM’s continuing success over the years ahead.

EOM offers attentive, competitively-priced Protection and Indemnity and Freight, Demurrage and Defense insurance to the operators of smaller vessels, typically those in local and regional trades, who prefer a fixed premium approach to their P & I needs.

It provides the benefits of American Club primary cover and service capabilities, co-venturing the first layer of insurance protection with underwriters at Lloyd’s on a quota-share basis. Lloyd’s syndicates also participate in the facility’s excess reinsurance arrangements for limits up to $500 million per risk. In this way, EOM offers the unsurpassed levels of service associated with an International Group club, underpinned by the impeccable security of reinsurance at Lloyd’s.

EOM insures ships from all over the world except the United States. It enjoys a strong presence in Asia, approximately 43% of its business currently being derived from Northeast Asia and 41% from South and Southeast Asia. However, its share of the market in Europe, the Middle East and Africa has also grown over recent years, and now accounts for about 13% of its total portfolio.

EOM’s premium income has advanced steadily since it commenced operations in 2011, its compound annual growth rate being almost exactly 15% over the period. Moreover, the insurance year just concluded featured a topline increase in revenue of approximately 42% over the previous twelve months which was itself 16% higher than the year before. Total premium revenue for the year to June 30, 2019 was in excess of $13 million, a record. It is expected that income will continue to grow over the forthcoming twelve months and beyond.

At the operating level, the last several years have enjoyed consistently good results. The incidence and severity of claims have remained at moderate levels, reflecting a prudent policy of risk selection and premium pricing, notwithstanding a highly competitive commercial environment. Since it commenced operations in 2011, EOM has generated an aggregate combined ratio of under 70%. This, together with confidence in EOM’s prospects generally, informed the recent favorable renewal of its reinsurances, with several new underwriters joining the program.

Following an extensive redeployment of its human resources, Eagle Ocean Agencies, Inc., the Manager of EOM, and an affiliate of Shipowners Claims Bureau, Inc., the Manager of the American Club, has made several key appointments over recent months.

In April, Chris Lowe was appointed as EOM Senior Marketing Business Development Liaison, Despina Beveratou assumed the role of Claims Liaison Manager and Jamie Baggett assumed the position of EOM Marketing and Business Development liaison. All these existing members of the EOM London team were well-known both to EOM’s and the American Club’s business counterparts, having worked in the London liaison office for several years in related roles.

In June, Richard Linacre, a well-known and highly experienced P&I professional with a broad industry background, joined EOM’s London team with important market liaison and business development responsibilities, bringing additional expertise and technical capabilities with him.

In addition to these changes, Simon Collins has continued to fulfill his important duties as consultant to the Managers in their London office. A highly regarded P&I professional with unmatched industry experience as both underwriter and broker, Simon will continue to have a vital role in the development of EOM-related business in that office, as well as in regard to its affairs generally.

Further key appointments are expected in London on the claims liaison front over the weeks ahead and, from a business development perspective, in Hong Kong over a similar timeframe. Further announcements in this respect will be made in due course.

Speaking in New York today, Joe Hughes, Chairman and CEO of Eagle Ocean Agencies, was thoroughly upbeat: “We are very pleased to report that EOM continues to enjoy a strong operating performance. Its increasing market share and steady profitability speak to a very promising outlook over the years ahead. We remain determined to make EOM a growing success for all its stakeholders: its insureds, the American Club, its reinsurers and its many other business associates.

“We have been particularly pleased to enhance EOM’s service capabilities in recent months through the promotion of existing staff and the recruitment of new talent. Our EOM team enjoys the highest of reputations within the market, and its continuing success is very much a reflection of the people we have in place to service EOM’s business throughout the world.

“We continue to take the long view when it comes to growing EOM’s position in the market. We will not lose sight of the need to apply careful risk selection, sensible pricing, effective loss prevention and unsurpassed claims service in building EOM’s reputation in the future. Inspired by the traditions of classic P & I mutuality, EOM will continue to occupy a special place in the fixed premium domain for all those who desire a high-quality approach to their insurance needs. We are confident that EOM’s business model will enjoy increasing success 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.

Richard Linacre, a well-known figure in the fixed premium P&I and related sectors, joins London team to undertake important market liaison role

NEW YORK, JUNE 10, 2019:  Eagle Ocean Agencies, Inc., which operates Eagle Ocean Marine (EOM), the American Club’s leading fixed premium P&I facility, has today announced that Richard Linacre, a well-known and experienced P&I professional with a broad industry background, is joining Shipowners Claims Bureau (UK) Ltd. in London.  Recruited to undertake an important market liaison role, Mr. Linacre will add further expertise and technical capabilities to EOM’s London presence in support of its activity both in the local market and more globally.

Mr. Linacre’s recruitment represents the continuing augmentation of EOM’s recently strengthened service capabilities in the London office.  His experience in the fixed premium P&I related sectors is particularly strong, as is the versatility of that experience in its application to marketing and claims liaison, business development, customer relations, loss prevention and other disciplines within the marine insurance sphere.

Speaking in New York today, Joe Hughes, Chairman and CEO of Eagle Ocean Agencies, Inc. said: 

“Richard Linacre’s addition to SCB (UK)’s team will benefit both EOM and the American Club in the development of their future business.  Everyone at EOM and the Club welcomes Richard to his new position with great enthusiasm, in the expectation that his efforts will significantly enhance our capabilities over the months and 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.