Posted on: 20 May 2021
The UK P&I Club, a leading provider of P&I insurance and other services to the international shipping community, announces its financial results for the year ended 20 February 2021.
UK Club: Financial strength maintained despite exceptional circumstances
The Club’s financial position remains strong with free reserves of $507 million as at 20 February 2021. The Club continues to comfortably meet all its regulatory capital requirements. Standard & Poor¹s reaffirmed the Club’s A rating in December 2020.
In an unprecedented year, the Club’s underwriting result was impacted by some significant one-off factors. Claims arising as a result of the Covid-19 pandemic and an exceptionally expensive year for claims shared through the International Group Pool increased the Club’s combined ratio to 149.6%. Excluding these factors, the underlying combined ratio was broadly in line with the previous year. Nevertheless, this continues to be above the Club¹s acceptable range.
It was a volatile year for investments. However, over the twelve month period the Club made a strong return of 5.6% ($59 million before expenses) which supported the Club¹s overall financial result.
Nicholas Inglessis, Chairman of UK Club says: “The strength of the capital position combined with a best in class service capability are the cornerstones of the Club¹s overall proposition. Member confidence and support for the UK Club remains extremely strong, as evidenced at the last renewal.”
Andrew Taylor, CEO of Thomas Miller P&I says: “The Club is well placed to deal with future challenges and remains focused on its key aims of delivery balanced underwriting and providing excellent service to Members. We maintain a close partnership with Members in all their business needs, from safety and loss prevention to advice on contracts and technical issues.”
