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Income up 15% at fixed premium insurer DGS Marine

Income up 15% at fixed premium insurer DGS Marine
Protection and Indemnity (P&I) insurer DGS Marine has announced a 15% growth in premiums to $36m for its 2015 renewals.

Free reserves at the insurer rose to $119m while reported claims fell by 4%.

The British, European and Overseas (BE&O) P&I facility, of which DGS is exclusive manager, saw its total tonnage rise by 25% to 4.8m tonnes from the 20 February renewals. The facility now has a fleet comprising 40% tankers, 24% bulkers and 23% general cargo ships.

DGS attributed its growth to the cost-cutting within the maritime industry.

"In today’s shipping markets, despite falling oil prices, cost control and financial transparency are still more important than ever for ship owners," commented David Skinner, BE&O P&I Group md. "They require as much certainty as possible over all costs in order to plan ahead and manage their cash flow."

Skinner claimed that the usual mutual model of P&I insurers lacks transparency, and DGS believes that more shipowners would move to fixed premium insurers were it not for the expensive fees associated with leaving their current policies.

“This has been a challenging renewal period for all P&I providers, with owners understandably pursuing the best price that they can, given the financial pressure that all shipping companies continue to face. Owners that have been with us for more than three years have been eligible for our Continuity Credits scheme, which offers a discount on premiums, dependent on their individual claims records," added Skinner.