UK P&I Club moves from 'stable' to 'positive in Standard & Poor's rating

THE UK P&I Club, a shipping protection and indemnity insurance mutual provider, has announced that ratings agency Standard and Poor's has upgraded the UK Club's outlook from "stable" to "positive."

In its review, Standard and Poor's said: "The positive outlook reflects our expectation that the UK Club's stronger and more stable underwriting performance of 2011 and 2012 will continue through 2013-2015."

It also noted the Club's improved operating performance as evidenced by the combined ratio, strength of management strategy, and the improvement in its competitive position.

Dino Caroussis, chairman of the UK P&I Club, said in a statement: "This is a welcome endorsement by S&P of the UK Club's efforts to maintain balanced underwriting and a strong capital position in an environment of rising claims costs and volatile investments.

"We are dedicated to our goal of being the leading shipowner controlled provider of marine liability insurance and maintaining our level of capital within the AA range of Standard & Poor's capital model."

The UK Club's funds have continued to strengthen in the first half of 2012 with free reserves and capital increasing a further US$8 million to $494 million as of August. The UK Club is one of the strongest clubs financially in the International Group of P&I Clubs with a free reserve ratio of 167 per cent.