31st May 2022
Following our Newsletter 03-22 we are now confirming that the respective members of theNorth of England and Standard P&I Clubs voted in favor of a merger on Friday 27 May2022. This represents the major shift in the P&I world since the financial difficulties in the1990’s causing a widespread risk review.
The merger creates a Club not dissimilar in size to that of industry leader, Gard.
North P&I Club
- Premium : about USD 430m
- Free Reserves : USD 433m
- Premium : about USD 320m
- Free Reserves : USD 360m
The expected advantages to merging include the reduction of operational costs, increasedeconomic leveraging when purchasing Reinsurance and improvement in the combinedratio. Overall, there will be a financial improvement and a larger capacity to face highvalue/pool claims.
It is relevant to note that the forecasted combined group premium income will exceed USD750m and it is reported that the combined ratio of the newly merged Club will be below110%, much stronger than those of the previous year.
The Club NorthStandard will be subject to regulatory approval in Autumn 2022 prior toformal completion of the merger in February 2023.
It will be jointly led by the two CEOs : Paul Jennings and Jeremy Grose.
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.