Van AalstTelestackSailors SocietyCleveland Cascades LtdTBA GroupBühler GmbH
  • Van Aalst
  • Cleveland Cascades Ltd
  • TBA Group
  • The Wolfson Centre for Bulk Solids Handling Technology
  • Telestack
  • Vigan

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

Oldendorff Carriers invests in Alpha Ori Technologies

(Posted on 05/12/22)

Oldendorff Carriers, one of the world’s leading dry bulk operators, has signed a deal that will... Read more


NSG GAC's second Swedish ship agency acquisition this year

(Posted on 05/12/22)

GAC Group has acquired Finland-based ESL Shipping's Swedish subsidiary Norra Skeppningsgruppen (NSG),... Read more


Klaveness Digital etablishes Board of Directors

(Posted on 01/12/22)

Norwegian technology company Klaveness Digital has announced the formation of its first Board of Directors... Read more


WinGD cybersecurity type approval from DNV prepares owners for regulations

(Posted on 01/12/22)

Swiss marine power company WinGD has become the first marine engine designer to gain cybersecurity type... Read more


InterManager welcomes IMO commitment on enclosed space risks

(Posted on 29/11/22)

InterManager has welcomed a commitment by the International Maritime Organization (IMO) to review guidance... Read more


North P&I faces up to turbulence with premiums rise

(Posted on 29/11/22)

North P&I Club signals intention to apply a 10% General Increase in 2023/24 premium rates amid swirling... Read more


Pioneer voyage data-sharing to enable carbon emissions reductions

(Posted on 19/11/22)

China Merchants Energy Shipping (CMES), BHP and DNV have signed a Memorandum of Understanding (MOU)... Read more


Safe Bulkers orders additional retrofits of Alfa Laval PureSOx

(Posted on 19/11/22)

In recent years, Greek shipowner Safe Bulkers has retrofitted Alfa Laval PureSOx exhaust gas cleaning... Read more


Fears of Nordics perfect storm unfounded says Swedish Club

(Posted on 13/11/22)

Times are difficult but no need for despair, was the message from Tore Forsmo, Area Manager, Team Norway... Read more


CSM and Marcap to focus on vessel performance optimisation

(Posted on 13/11/22)

Columbia Shipmanagement (CSM) and Marine Capabilities (MARCAP LLC) have signed a Memorandum of Understanding... Read more


Port of South LouisianaTOC EventsPort of StocktonThe Wolfson Centre for Bulk Solids Handling Technology CimbriaVigan
  • Port of Stockton
  • TOC Events
  • Port of South Louisiana

Subscribe to our newsletter

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