The UK P&I Club's Board of Directors concluded a productive set of meetings in Berlin culminating in a full Member's Committee meeting on 10 February 2025.
Financial update
The pool, which shares the largest claims in the industry between International Group Clubs, has been very active in the 2024 policy year. The cost of the 2024 pool is already greater than the last two years combined, despite only 11 months of development. Fifteen claims have been notified to the pool, of which one was notified by the UK Club. The elevated activity could result in the most expensive pool year on record.
The Club’s own mutual incurred claims are developing broadly in line with expectations although large claims activity has increased in the second half of the year. Some of the larger incidents involving Club Members this year relate to containership fires, and the Board received a report on Club initiatives to reduce the risk and impact of fires in containers.
Development on prior years claims continues to be better than expected and, encouragingly, the cost of claims on the Club’s fixed premium facility has also been favourable.
Overall, given the increase in large claims and the cost of the pool, it is likely that the year-end combined ratio will exceed break-even. However, after 11 months, our investment return of 6% is better than expected and an increase in free reserves is forecast for the year.
Renewal
With the majority of Members already renewed for a further year, the Board thanked Members and Brokers for their overwhelming support. We have attracted significant new tonnage during the 2024 policy year and expect to announce an increase in our market share for the 2025 policy year.
The Club is focused on achieving sustained balanced underwriting and the renewal has been another important step towards achieving this goal. During the renewal process we are also focused on ensuring fairness between Members and it has been necessary to lose some Members where premium rates needed greater correction to meet the cost of claims.
The Board also reviewed the renewal of the International Group and the Club's own reinsurance programmes. Both have been successfully renewed, and details of the International Group's renewal can be found here.
Sustainability
The Board discussed the interaction between potential new fuels and existing liability regimes and the work that continues in this area. The Club’s second sustainability report, which is due for release soon, was also discussed. The report details the various initiatives with which the Club is engaged to promote sustainable shipping, resolve issues for crew and reduce the Club’s carbon footprint.
Resolutions
The Board passed resolutions in order to provide War Risks P&I Excess Cover, and to provide cover for Bio-Chem risks; and in order to determine the limits applicable to cover for Pollution risks. The three resolutions are set out in detail in Circular 05/25. The Board also received a report on the Special General Meeting held in London on 21 January 2025 at which the rules of the Club were adopted for the coming year. Details of all amendments to the rules can be found in Circular 17/24.
