Newcastle marine insurer reports year of growth as premium income hits £320m

North P&I Club (part of the North Group), the Newcastle-headquartered global marine insurer, has announced its annual results for the financial year ending 20th February 2017.

Confirming a premium income of £320m as of 18th May 2017, and 7% rise in shipping tonnage insured under North, the organisation’s results represent a consecutive year of growth.

Alan Wilson, joint managing director, commented: “We are pleased to have further bolstered North’s financial position and capital strength in the past 12 months, a position that is reinforced by our strong credit rating.

“A combined ratio of 96% is a solid result that has delivered a financial surplus of £1.8m as of 18th May 2017, and a growth in our free reserves to £330m. Looking forward, our focus will remain on controlled growth, based on meeting our financial targets and, crucially, our service targets for our shipowner members.”

A 2.8% investment return, premium income of £320m and a solid underwriting strategy have contributed to the increase in free reserves and combined ratio position, which now stands at a five year average of 94.4%.

In January 2017, ratings agency Standard & Poor’s affirmed North’s ‘A’ credit rating for the thirteenth consecutive year and strengthened its assessment of North Group’s capital adequacy from ‘AA’ to ‘AAA’.

Paul Jennings, fellow joint managing director of North P&I Club, added: “We are satisfied with the Club’s performance in 2016, which concluded with a successful renewal period that resulted in 99% member retention and a further 7% controlled growth in our shipowner membership.

“This sees our total tonnage rise to 190 million gross tonnes (GT). We are also gratified that the majority of this growth came from existing shipowner members, which is testament to their confidence in our service delivery and financial strength.”

The past year has seen North widen its global office network, with the opening of a subsidiary office in Shanghai in November, to support the Club’s Asia-based membership and all shipowner members trading in the region.

The operational and service delivery teams based at North’s head office in Newcastle has also been strengthened as the 270 strong team continues to grow.

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