Steamship foresees a flourishing future

The Club has issued the following Press Release:

Steamship Mutual, the leading P&I Club, today released its 2008 Management Highlights.  The visual theme of the Highlights this year is the remarkable contribution shipping has made to the success of the world economy. 

The Highlights provide an insight into developments in world shipping over the last year and the part that Steamship Mutual has played in them. Topics covered include the need for transparency in Club underwriting, an analysis of the claims environment over the year, highlighting the shift in the pattern of large claims, and the vital role played by the Club’s loss prevention initiatives in helping its Members control their claims exposures. 

The Highlights also provide in depth analysis of the combined financial position of the two Steamship Mutual Clubs and the Steamship Mutual Trust. This demonstrates that, despite the P&I Market forecasting exceptional levels of claims for the second year in  a row and the financial markets wilting under the turbulent credit conditions, Steamship Mutual posted record results, with an overall operating surplus of USD27.6 million and free reserves increasing to their highest ever level.  

Summary of Financial Results

• Operating surplus of USD27.6 million
• Free reserves rise to USD185.8 million (up 17.5%)
• An overall combined ratio of 97.9% was achieved for the financial year, bringing the three year average to 108.3%.
• Total entered tonnage was up 9.1%, at 72 million GT
• Cash and investments increased by USD20.2 million to USD690.2 million
• Overall combined increase of 13% in premium from renewing members
• New business entered at renewal will generate additional premium of USD15.7 million, bringing the total increase in premium to 15.5%.

Commenting on the Management Highlights, James Stockdale, CEO of the Club’s Managers, said,  

“The P&I Market is at a cross-roads. We now have clear confirmation that, unless the inadequacies in the maritime infrastructure are addressed as a matter of urgency, claims will remain at or above current levels for as long as global shipping demand remains buoyant. The chronic shortage of skilled and experienced crew remains the most pressing problem. Attracting and recruiting a new generation of skilled seamen is being made even more difficult by those states that are seeking to make political capital out of criminalising seafarers for actions that in other industries would be treated as simple mistakes. 

“As not-for-profit businesses, P&I Clubs have a close identity of interest with their ship owner Members and have a vital role to play in the maritime industry. To continue to play that role, it is essential that the benefits of the mutual system are spelled out and promoted to each new generation of ship owners, to ensure that we retain their involvement and support. 

“Steamship Mutual’s progress over the past year is a tribute to the Club’s robust policy of disciplined and targeted underwriting, prudent financial management and effective loss prevention. The Club has laid a sound foundation for steady future growth but long term stability and financial strength remains our overriding priorities."

…Ends… 

Note to Editors: Photography and additional comments are available upon request 

Press contact:

Richard Stace
+44 (0) 7917 410 320
richard.stace@simsl.com  

About Steamship Mutual

Steamship Mutual (managed by Steamship Insurance Management Services Limited) is a leading provider of Protection & Indemnity (P&I) insurance. As one of the largest P&I Clubs in the International Group, Steamship Mutual insures a diverse range of shipping around the globe, for both shipowners and charterers. 

Steamship Mutual offers a comprehensive range of P&I products and ancillary covers. The Club consistently delivers a first-rate service to its Members, providing high quality professional claims management and services, backed by a stable financial position and strong free reserves.  

With offices in London, Bermuda, Hong Kong, Brazil and correspondents in every major shipping port worldwide, Steamship Mutual employs highly professional and experienced staff including qualified lawyers, ex-senior mariners, and specialist insurance and claims experts. 

For further information visit: www.simsl.com