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North-SMMI merger gets blessing from Standard and Poors

North-SMMI merger gets blessing from Standard and Poors
North P&I has been given an 'A' rating by ratings agency Standard and Poor’s (S&P) following its merger with Sunderland Marine Mutual Insurance (SMMI).

Quoting North Group’s strong financial position, S&P analysts Tufan Basarir and Peter McClean said that the addition of SMMI would have a “neutral” effect on North’s financial risk profile. North Group, now the second largest P&I business in the world with a total tonnage portfolio of 131m gt, can expected premium income of $500-525m in its first year, according to the ratings agency.

Meanwhile, SMMI would “provide some business diversification owing to the addition of Sunderland Marine’s international hull and aquaculture business.”

“In our opinion, the combined group will have strong capital and earnings, supported by very strong capital adequacy which we anticipate will be sufficient to support its organic growth over the next three years,” the analysts concluded.

“I am delighted we have retained our ‘A’ credit rating and stable outlook for a tenth consecutive year,” said North P&I chairman Pratap Shirke. “It is also a testament to the sound financial logic of our merger, which has provided enhanced financial stability for members, a greater diversity of product lines, continued service excellence and a stronger competitive position. The new North Group has the ability to service the needs of the entire marine spectrum, from small fishing vessels to the largest ships.”