UK P&I Club Announces General Increase For 2015 Policy Year
The UK P&I Club Board has agreed at its meeting on 27th October 2014 that the general increase for the 2015 renewal will be 6.5%.
The premium rating increase is in addition to any change in the cost of the International Group reinsurance premium for 2015 for the mutual Members, which will be determined next January.
In setting the general increase, the UK Club Board is mindful of the balance between the needs of the Club’s Members on the one hand, and the Club’s commitment to maintaining balanced underwriting and sound financial planning on the other. The 2013 year has proved to be one of the most expensive claims years of the last two decades, and underlines the importance of keeping premiums moving.
The general increase reflects the Club’s commitment to maintain balanced underwriting and put the Club in the best position to meet the challenges of the future.
Alan Olivier, Chairman of the UK P&I Club, said: “The Board is determined to maintain our highly disciplined approach to underwriting to secure the long term stability of the Club. The Board is equally determined to support our Members through the current commercial environment.”
Hugo Wynn-Williams, Chief Executive of the UK Club’s managers, Thomas Miller P&I (Europe) said: “The 2013 policy year has proved to be particularly expensive for the Club due to a few large claims. The strength of the Club has enabled it to weather this storm and emerge with a stable level of capital. The Club’s has built a firm foundation from which it will continue to provide first class service to our Members”.
The Club has maintained its capital position at the half year with $529m in free reserves and capital and total assets of $1.6 billion at the 20th August 2014. The UK Club’s Standard and Poor’s rating is A (Stable). At the meeting the board approved a moderate change in standard deductible for the 2015 policy year from $8,500 to $10,000 per event. A detailed explanation of the background to the Board’s decisions can be found in the “October Review 2014” and Circular 10/14. Both documents are available electronically on the Club website www.ukpandi.com.
