14th March 2022
The Standard and North P&I Clubs have announced their intention to merge. That intention will need to be approved by the respective membership and is subject to regulatory approvals. Their press release is attached.
P.L. Ferrari have a substantial and long-standing business relationship with both clubs and are positive about this development.
Whilst clearly a lot of detail will need to be clarified over the coming months we see headline benefits.
We would stress that the announcement is an intention to merge and is, as mentioned, subject to member and regulatory approval.
There will be more granular detail emerging over the next few months and P.L. Ferrari will keep our clients and friends up to date on all developments.
This newsletter, and our information archive, can also be accessed at
P.L. FERRARI & CO. S.r.l.
P.L.Ferrari – A Member of the Lockton Group of Companies
This newsletter is intended solely as an overview of the marine market and does not constitute any form of advice. It is based on sources believed to be accurate at the time of printing andwe cannot be held liable for the omission of any information within the newsletter.
North P&I and Standard Club announce mergerplan to create new global marine insurance force
Combination would establish a global marine insurer positioned to thrive in the face ofcurrent and emerging challenges and opportunities posed by digitalisation, recruitment,regulation and sustainability.
North P&I and Standard Club have entered formal discussions for a proposed merger to create anew global marine insurer and one of the largest providers of mutual cover in the maritimeindustries. With 300 years of shared P&I heritage, the combined mutual insurer would providecover for vessels equivalent to 400M GT.
“Standard Club and North now have the opportunity to create one of the world’s leading andmost influential P&I clubs, founded on exceptional service and innovation, a broader diversifiedproduct range, scale economies and global reach,“ said Jeremy Grose, CEO, Standard Club.
“The merged club would maintain an unwavering commitment both to member service and to theInternational Group system and offer marine insurance products, services and solutions relevantto the broadest range of shipowners worldwide”, said Grose. “Acting as a powerful voice forshipowners and their best interests, the merged club’s market-leading knowledge and deeptechnical insight would focus on supporting the changing needs of shipowners”.
“With stronger financial resilience, the newly created club would be well-positioned to thrive in allconditions”, commented James Tyrrell, Chairman at North. “In a changing and sometimes volatilemaritime sector, North’s Board has long recognised the potential value arising from consideredand balanced consolidation in P&I,” he said. “Choosing the right partner is the first critical steptowards success.”
The merger would help the new club navigate the continuing disruptive change affecting themaritime sector and better anticipate challenges ahead. Backed by a strong capital buffer overregulatory requirements, the combined club’s capital strength would allow for significantreinvestment in enriching member services, innovative technology and more tailored andsustainable solutions for the longer term.
The formal announcement follows the approval of the proposal by the boards of both clubs andnotification to principal regulatory authorities of their intention to merge. A joint North andStandard Club working group has been appointed to evaluate how a combined entity wouldmaximise value for members. The working group is following a structured methodology, allowingthe case for a merger to be objectively explored and assessed by both clubs.
“The ambition behind the merger is to deliver tangible benefits to shipowners. The boards of bothclubs have played a key role in guiding and shaping the proposal. Combining will provide greaterfinancial resilience, efficiency and an even deeper pool of talent to maintain and strengthen thefocus on service excellence and close member relationships for which both clubs are renowned”,said Cesare d’Amico, Standard Club’s Chairman.
The proposed merger remains subject to the approval of the full mutual membership of bothclubs and of all the appropriate regulatory authorities. Member voting procedures are anticipatedto conclude by the end of May. If approved by the membership, the formal merger of both clubsis expected to complete by 20th February 2023
“With a number of successful mergers in its recent history, North has a full understanding of therange of benefits available to members from a well-planned and well-executed union”, pointedout Paul Jennings, CEO at North.
“With histories which in 2022 add up to 300 years, the combination of these two uniqueadvocates of mutuality, with their complementary cultures, ambitions and approaches, wouldbuild on the strengths of each club,” he added. “The alliance of North and the Standard Clubwould deliver a compelling value proposition to take advantage of the opportunities and meet thechallenges of digitalisation, recruitment, regulation and sustainability”.