London Club ahead of pack on underwriting performance

THE London P&I Club has come out ahead of the pack on its underwriting performance for the 2024-2025 policy year, with an outcome significantly better than most of its rivals.

The development was confirmed this week as the marine mutual published its financial results for the period, which saw an operating surplus of $21.3m and free reserves strengthened to $171.2m. Gross earned premium income increased 12% to hit $159.8m.

The combined ratio, which measures dollars out in claims and operated expenses against dollars in premiums, was 101.7%, giving a three-year weighted average of 103.9%.

This compares to figures of 104% for West of England, 112% for Skuld, 113% for Steamship Mutual, 114% for NorthStandard, 116% for the UK Club and 138% at Britannia.

Meanwhile, the investment return on assets under management and cash was 6.3%, contributing $24.7m to the operating result.

“This positive result reinforces the London Club’s planned approach to focus on the sustainability of its rating and deductible levels, alongside growth based on attracting quality shipowners from markets worldwide,” it said in a statement.

There was another boost in the shape of upgrade from ratings agency Standard & Poor’s, which improved the outlook from BBB negative to BBB stable last December, following a sustained period of improved operating performance.

Last February’s renewal also led to a 12.6% growth in entered tonnage compared to the previous year.

The club’s mutual book now stands at 49.5m gt, regaining the volume it has lost over the past four years, but with a significantly stronger premium base.