13th November 2023
P&I mutual entries
- Whilst there is no declared general increase, 7.5% increase on the expiring P&I Estimated Total Call (ETC) for the 2024 renewal.
- No changes to minimum deductibles.
- Whilst there is no declared general increase, 15% increase on the expiring FDD entries for the 2024 renewal.
The Board noted that the Britannia Group remains financially strong but rate increases are still required for the 2024/25 renewal to maintain the progress made so far in addressing the underwriting deficit.
This willprotect their underlying financial strength in the longer term. It will alsoevidence to the regulators and S&P that the Britannia Group is committed toachieving balanced underwriting.
The Clubrenewal circular sets out the main highlights from the Board’s decision on the renewal 2024/2025:
- The Britannia Group had a strong 2023/24 renewal with owned tonnage increasing year on year. Whilst there was also continued improvement in the underwriting result from the previous year and progress has been made in addressing the underwriting deficit, work is not yet complete and more needs to be done to address the underwriting imbalance and support the Members with a capital distribution.
- The Britannia Group’s Boards directed that there should be a further Capital Distribution of USD10 million, payable to Class 3 (P&I) Members with owned ships on risk as at midnight (BST) 24 October 2023. Each Member’s proportion of the distribution will reflect their share of owned net Class 3 premium in relation to the owned net Class 3 premium for all ships on risk at midnight BST 24 October 2023.
- This position is set against continuing geopolitical tensions around the world, inflation remaining stubbornly high and volatility in investment markets.
- The Club will undertake a technical based renewal of their membership to promote sustainable premiums and restore underwriting balance by achieving pricing adequacy.
- Whilst there is no declared general increase, the Board has targeted an improvement in the premium adequacy equal to a 7.5% increase on the expiring P&I ETC.
- The Board agreed that there will be no changes to minimum deductibles which will remain at the levels set for 2023/24. However, deductibles will be considered individually with reference to record and risk profile and as part of a suite of measures to achieve pricing adequacy on each Member’s entry.
The Boards set at 15% the Release Call 2024/25.