United Kingdom

Steamship Mutual Underwriting Association Limited

Steamship Mutual, a leading P&amp;I Club providing marine liability insurance worldwide, announced a 17.5% standard increase in P&amp;I premiums for 2009/10. In reaction to the extreme investment market volatility which is expected to persist into next year, the Directors of Steamship Mutual have decided to eliminate any future reliance on investment income in achieving a breakeven underwriting result and to set a policy year combined ratio target of 100% for future years. A standard increase of 17.5% is required to meet this target for next year. In future investment income will be allocated entirely to reserves. Other factors contributing to the Club’s decision to raise rates for 2009/10 are the risk that, while the Club’s claims experience for the 2008/09 policy year appears to be developing in line with projections, claims could deteriorate in the second half of the year as the North Atlantic winter gets under way and the uncertainties surrounding the claims outlook as the world economy and the shipping markets slow. Given the inexorable effects of inflation on legal costs and the average size of routine claims, the Club has decided that, in addition to setting standard premium increases for 2009/10 policy year of 17.5% for P&amp;I and 15.0% for FD&amp;D, it is also necessary to raise minimum deductible levels for both classes. <img alt="" src="https://syt-store-production.s3.eu-west-1.amazonaws.com/photo/126106/image/large-24b7bf868dcac3525f2842da6f6a026c.jpg" data-gid="gid://syiq/Photo/126106">Steamship Mutual also reports, in its latest Circular to Members, that the underwriting results of both earlier open years continue to improve. In addition, Steamship has seen continued growth in the first eight months of this year and reports a positive increase in owned entries (net of disposals) of 3.2 million GT. James Stockdale, Steamship Mutual’s CEO, said, “With commodity prices falling, economic conditions deteriorating and shipping activity showing signs of a rapid slow down, the claims outlook is extremely difficult to predict. Faced with uncertainty in the outlook for claims and extreme levels of financial market risk, the Club must ensure that any adverse developments are capable of being met by maintaining the strong and conservative approach to underwriting taken over recent years”. Earlier this year Steamship Mutual posted record financial results, announcing an operating surplus of USD27.6 million and a 17.5% increase in free reserves. Steamship’s underwriting track record is amongst the best in the industry and it remains committed to maintaining that position and to protecting its financial strength for the benefit of its existing and future Members.

Steamship Mutual tightens underwriting target

Steamship Mutual, a leading P&amp;I Club providing marine liability insurance worldwide, announced it is launching a new Yacht Liability insurance product for luxury super and mega yacht owners, operators, charterers and fleet managers. Already a market leader in the provision of marine liability insurance to the global passenger and cruise sectors, Steamship Mutual has created a new liability product that is tailored to meet the specific requirements of those operating in the luxury super and mega yacht market. Underwritten on a fixed premium basis, coverage limits will be available from US$1 million increasing to US$500 million for the world’s largest sized yachts. Stephen Quartermaine, Head of Underwriting at Steamship, said, “Given our already strong position in the passenger and cruise sector, this move into the Yacht Liability market is a natural step for Steamship Mutual. Unlike many yacht insurers, our size, experience and global reach allows us to underwrite business in excess of hull values and without restrictions on trading areas or domicile. Our new product will offer enhanced coverage on terms much wider than generally available in the commercial market” The Steamship Mutual product has been developed to focus on the escalating growth in the super and mega yacht market. As yachts increase in size and are ever more subject to legislation, growing numbers of yacht owners and operators require the service and capacity of an expert liability insurer at levels in excess of hull value. Steamship Mutual is uniquely well qualified and experienced to meet those specialist needs. Earlier this year Steamship Mutual posted record financial results, announcing a 9% growth in its entered tonnage, combined with an operating surplus of USD27.6 million and a 17.5% increase in free reserves. Through this new Yacht Liability product and other key initiatives, Steamship Mutual’s aim is to grow its market share to enhance the Club’s financial strength for its existing and future members.