The UK P&I Club (“The UK Club”), a leading provider of P&I insurance and other services to the international shipping community, announces its financial results for the year ended 20 February 2021.
UK Club: Financial strength maintained despite exceptional circumstances
The Club’s financial position remains strong with free reserves of $507 million as at 20 February 2021. The Club continues to comfortably meet all its regulatory capital requirements. Standard & Poor’s reaffirmed the Club’s A rating in December 2020.
In an unprecedented year, the Club’s underwriting result was impacted by some significant one-off factors. Claims arising as a result of the Covid-19 pandemic and an exceptionally expensive year for claims shared through the International Group Pool increased the Club’s combined ratio to 149.6%. Excluding these factors, the underlying combined ratio was broadly in line with the previous year. Nevertheless, this continues to be above the Club’s acceptable range.
It was a volatile year for investments. However, over the twelve month period the Club made a strong return of 5.6% ($59 million before expenses) which supported the Club’s overall financial result.
Nicholas Inglessis, Chairman of UK Club says: “The strength of the capital position combined with a best in class service capability are the cornerstones of the Club’s overall proposition. Member confidence and support for the UK Club remains extremely strong, as evidenced at the last renewal.”
Andrew Taylor, CEO of Thomas Miller P&I says: “The Club is well placed to deal with future challenges and remains focused on its key aims of delivery balanced underwriting and providing excellent service to Members. We maintain a close partnership with Members in all their business needs, from safety and loss prevention to advice on contracts and technical issues.”