Following a challenging period for the global economy and shipping in a year which saw a record level of International Group (IG) pool claims, North is reporting positive returns for its 2020-2021 financial year. North’s recently published Annual Review posts robust growth across a number of diversified lines and, at 6.67% (equivalent to US$64.5M), its highest return on investments for many years.
In continuing its transformation from a monoline P&I Club to a diversified global marine insurer, North achieved premium income growth of US$60M across its mutual and diversified business lines, reaching US$406M. Thya Kathiravel, North’s Chief Underwriting Officer, commented that “year on year, premium increases were especially notable for Sunderland Marine Hull, P&I and Aquaculture lines and the newer, diversified Owners’ Fixed Premium P&I as well as North’s Hull facilities.”
Ed Davies, Chief Financial Officer, North, commented: “Prudent growth through diversification provided shelter during a year when 19 claims were made via the pooling arrangements shared between the 13 IG clubs with an unprecedented value of US$463M. North absorbed over US$90M in pool costs for the financial year despite experiencing no pool claims in that period.”
COVID-19 had made 2020-2021 “a year like no other for all of us, and especially for seafarers”, said Paul Jennings, Chief Executive, North. “COVID-19 variants also mean that crew transfers are again becoming complex, while the pandemic’s long-term impact on the global economy is uncertain.”
In his first Annual Review, new North Chair, James Tyrrell, commented: “Through a period of exceptional challenge, we have supported all Members of North while continuing to be driven by our core purpose – enabling Members to trade with confidence.” He also saluted the contribution of previous Chair, Pratap Shirke, who oversaw a period of continuous growth for North during nine years in post.
Supporting the confident outlook, North’s overall P&I Owned and Chartered tonnage grew year-on-year to 248M GT.
To view or download the Annual Review, follow this link: