Standard & Poor's upgrades UK P&I Club, reflecting rising finances

THE Standard and Poor rating agency has upgraded UK P&I Club's (the UK Club) from "stable" to "positive".

"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," said the S&P statement announcing the upgrade.

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

Said UK P&I Club chairman Dino Caroussis: "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."

The 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 at August 20. It claims to be one of the strongest clubs financially in the International Group with a free reserve ratio of 167 per cent, said the report.