8th November 2023
P&I mutual entries
- 5% increase on Estimated Total Call (ETC) for the 2024 renewal
- 10% Owners’ general discount (OGD) will be applied on ETC basis for vessels renewed by Members with Gard for the 2024 policy year.
- No changes in deductibles would be applied.
- Release call for 2024/25 policy year set at 10%
- No general changes but attention to record only.
The Board noted that the Gard group continues to be well capitalised and its financial rating remains strong with an A+ (stable outlook) rating by Standard and Poor’s - the highest in IG Group. The group has delivered a strong insurance performance over the last decade, and in spite of the inherent high volatility within the business lines the overall insurance result on a group level has been stable relative to its peers.
The Club renewal circular sets out the main highlights from the Clubs operating environment which were considered when deciding the general increase requirements:
- With inflation still running high, the Board noted that there is a need to ensure that the Association maintains the Mutual P&I portfolio with only a small estimated loss. Premium adjustments will therefore have to be applied to maintain predictability and relative stability in the portfolio going forward.
- Considering the strong capital situation in the Gard group of companies the Board agreed a 10% OGD on an ETC basis for vessels renewed by Members with Gard for the 2024 policy year.
- 2024 will be the 15th year in a row that Gard returns capital to the mutual membership.
- Premium adjustments will therefore have to be applied to maintain predictability and relative stability in the portfolio going forward and to this end, the Board of Directors has decided to levy a 5 per cent premium increase on ETC for the 2024 renewal.
- Adjustments on the International Group’s reinsurance rates will be passed on to Members in accordance with usual practice.