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Low year for claims boosts financial performance for North P&I Club

GLOBAL marine insurer North P&I Club reports that a low year for claims has helped it increase its free reserves by US$90 million to US$428 million.

This has enabled it to deliver a combined ratio of 73.3 per cent in the financial year ending February 20.

This brings the combined ratio average of the past five years down to 95.7 per cent, among the best in the International Group, the company said in a statement.

Said North P&I Club chairman Pratap Shirke: "We need to ensure that our capital levels are sufficient to maintain the A rating from S&P. However, we are mindful our capital is owned by our members and that members are facing challenging trading conditions."

Said joint managing director Alan Wilson: "The strong financial result from steps to part with members who were not willing to make an equitable contribution as well as a historically low number of claims in excess of US$1 million."

Mr Wilson also noted low attritional claims numbers, an improvement in the deficits of the North Group's pension schemes and the successful integration of Sunderland Marine within the group.

"The group produced this strong financial result despite a US$12.8 million investment loss at 20 February 2016." he said.

Said joint managing director Paul Jennings: "Despite the fact that the total number of vessels entered into the Club has increased over the past five years, we had just 19 claims in excess of US$1 million (totalling US$55 million) ?just over a third of the equivalent number in the previous year, and over 1,000 fewer small claims below US$1 million."