The decision not to offer renewal terms to companies which “did not meet the club’s quality and rating criteria” and offsets a large portion of the 4.05m gt taken on in the previous policy year, a 3% increase to 135m gt.
Over the course of the previous policy year, eight new members joined the club, and many increased their entry. The Standard Club expects newly-delivered tonnage, as well as increasing membership in the 2015-16 policy year “will more than offset” the loss of tonnage.
“We worked hard to achieve the premium increase we were targeting to ensure long term security for members,” said Jeremy Grose, chief executive of Standard Club’s manager Charles Taylor & Co. “Although this has meant that some members have had to accept increased levels of premiums, we have also seen a welcome trend with some members accepting higher levels of risk retention to mitigate premium increases. I am also very pleased to welcome eight new members to the club. This new membership, and the commitment to new tonnage from existing members, is a strong endorsement of the club’s proposition to both current and prospective members.
“The club has had a very good year with our focus on underwriting discipline, high levels of professional service and technical advice, our loss prevention activity and highly effective claims management all contributing.
“We expect free reserves to increase at the year end, to another record level for the club. We saw a welcome reduction in claims in the second half of the 2013-14 policy year, which has contributed to our strong financial position,” he added.
Last week rival North P&I Club announced a 4m gt reduction in tonnage in an effort to bolster its balance sheet.
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