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.

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, 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.

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.”