TBA GroupPort of South LouisianaSailors SocietyBühler GmbHTelestackVan Aalst
  • Vigan
  • Geneva Dry
  • Port of Stockton
  • TBA Group
  • Van Aalst
  • Port of South Louisiana

Britannia returns more funds to Members

(Posted on 18/10/19)

The Britannia Steam Ship Insurance Association Limited has declared a USD15 million capital distribution to its mutual Members.

In August 2019, S&P re-affirmed Britannia’s A (stable) rating with capital well above the AAA level and an ‘exceptional’ liquidity rating.

However, the 2018/19 policy year was challenging, with lower than projected investment returns and claims being higher than expected. Claims continue to be high, in particular those in excess of USD1 million. In addition, all insurers in the P&I sector have seen rates declining, with Britannia anticipating an underwriting deficit for the current policy year, with an expected combined ratio of 108%.

At its meeting on 15 October, Britannia’s Board recognised the challenge of having to improve rates whilst noting the club’s continued capital strength. Addressing this challenge, the Board therefore agreed the following series of actions:

A further capital distribution of USD15 million will be made to Members with ships on risk at midnight (BST) on 15 October 2019 (using the same method of calculation for each Members’ share as for prior distributions). This brings the total of capital distributed to Members since May 2017 to USD85 million. In the past three years Members have benefited from deferred call waivers and capital distributions totalling USD100 million.

The Managers will undertake a more technically-based renewal of the membership, to promote sustainable premiums and restore underwriting balance. To support this, the Board agreed to move away from the practice of a General Increase, which it considers to be a less sophisticated method of raising premium levels.

Accordingly, from the 2020/21 renewal, each Members’ rates will be adjusted to reflect their individual claims record and risk profile. As usual, any changes in the cost of the International Group Reinsurance Programme will be reflected in Members’ rates.

For ease of comparison with most of the other International Group (IG) clubs, with effect from the 2020/21 policy year, the Association will simplify its calls system and the terminology used. The terms “Advance Call” and “Deferred Call” will be replaced with Estimated Total Call (ETC).

This change will not result in any difference to the amount of premium due from Members. Simplifying the calls structure will ease administration costs for Members and the club. The traditional calls structure will apply to open policy years until those years are closed.

Britannia’s attempt to bring clarity to the P&I market by setting release calls at 0% has been unsuccessful. To reflect tightening premium margins and to allow a more balanced comparison with other IG Clubs, release calls have been reassessed for open policy years.

Commenting on the Board’s decisions, the Association’s new chairman, Tony Firmin, said: “I am delighted that Britannia remains in excellent financial shape. This has enabled the Board to distribute a further USD15 million to its Members whilst agreeing to adjust rates in a way which better reflects individual Members’ records and risks”.

Latest News

New Nuclear for Maritime takes centrestage with record attendance

(Posted on 19/06/24)

Over 350 delegates registered for CORE POWER's landmark New Nuclear for Maritime Summit held in London... Read more


AI tools key to the 'urgent action' needed to meet IMO climate targets

(Posted on 19/06/24)

Yarden Gross, CEO and Co-founder of maritime technology start-up Orca AI, is championing the rapid,... Read more


Torbjørn Gjervik appointed Western Bulk CEO

(Posted on 19/06/24)

Western Bulk Chartering AS to has announced the appointment of Torbjørn Gjervik as Chief Executive... Read more


INTERCARGO condemns deadly attacks on bulk carriers

(Posted on 14/06/24)

Following news that a seafarer has died and another has been seriously injured in the latest Houthi... Read more


Ecomar delivered to AtoB@C Shipping

(Posted on 14/06/24)

ESL Shipping's subsidiary AtoB@C Shipping has on 13th June taken delivery of Ecomar, which is the third... Read more


GAC to acquire Quadrant Pacific’s ship agency business

(Posted on 14/06/24)

GAC Group, a leading provider of shipping, logistics and marine services in the Asia-Pacific market,... Read more


Onboard carbon capture relies on industry collaboration says DNV

(Posted on 07/06/24)

Onboard carbon capture (OCC) is attracting interest within the shipping industry, providing shipowners... Read more


Franman to promote Saudi’s IMI in Greece and Cyprus

(Posted on 07/06/24)

Athens-based Franman, a leading representative and supplier of premium equipment, parts, products and... Read more


Veson: Bulker newbuilding values at 15-year high

(Posted on 01/06/24)

Values for newbuild vessels of 180,000 DWT are up by c.5.45% from USD 66.09 mil to USD 69.63 mil according... Read more


NorthStandard annual review figures verify value of scale and reach

(Posted on 31/05/24)

Global marine insurer, NorthStandard, recorded increases in premium income, investment returns, and... Read more


TMS Awards 2023ViganCimbriaPort of StocktonGeneva Dry
  • TMS Awards 2023
  • Bühler GmbH
  • Cimbria
  • Telestack

Subscribe to our newsletter

Keep up to date with the latest global news in bulk cargo handling and shipping