Steamship Mutual – Looking To The Future

Steamship Mutual, a leading global P&I Club this week issued an update on its financial position and a review of reinsurance arrangements for the 2010/11 policy year.

In addition, Standard & Poor’s have updated their financial strength ratings of the Bermuda and London Associations. A positive outlook has been placed on the ratings which are confirmed at BBB+. In the rationale for the positive outlook Standard & Poor’s point to the strong competitive position of the Club, the new investment strategy with a focus on capital preservation, underwriting discipline, and the Club’s strong capitalisation.

Speaking at a dinner held in Hong Kong on 25th January to commemorate the centenary of the Steamship Mutual Underwriting Association Limited, the Chairman of the Steamship Mutual Underwriting Association (Bermuda) Limited, Mr. Otto Fritzner commented:

“Steamship Mutual has grown from its origins 100 years ago as P&I insurer of ships drawn mainly from the western regions of the United Kingdom to its current status as one of the largest and most geographically diverse of P&I Clubs. Today the Club has a total entry, owned and chartered, of approximately 85 million gross tons. This is composed approximately one third from the Americas, one third from Europe and one third from the East.

Although a centenary is a time to take pride in what has been achieved, it is perhaps more important to look to the future. If the Club is to thrive in the coming years it must remain relevant to the needs of shipowners. The attention of the Board is focussed on two main areas.

Firstly, service to the Members – but this needs to go further to reflect the current challenges facing shipowners.

Every day the Club must assist its Members in all those areas that ensure the most efficient operation of their ships, such as the defence of claims, advice on contracts, and the issuing of guarantees and certificates, whilst the challenges for shipowners keep growing.

Secondly, the financial strength of the Club.

The financial crisis has drawn the attention of many people, including governments, to the strength of the mutual system as a business model

The action already taken by the Board has put the Club in a strong financial position. The projected operating surplus for the current year will ensure that Steamship Mutual enters 2010 as one of the strongest Clubs in the International Group and is well placed to face the challenges that lie ahead.”

The Club is projecting another year of solid underwriting results for 2009 / 2010 and a significant increase in free reserves at year end. Standard and Poor’s positive outlook recognises these achievements and is an important step towards a rating upgrade, reflecting the Club’s strength as it enters the new decade

…Ends… 

Note to Editors: Additional comments are available upon request.   


 

Press contact:

Jacqueline Callard
Steamship Insurance Management Services Limited
Tel: 020 7650 6515 (direct)
Email: jackie.callard@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 globally insures a diverse range of vessel tonnage, 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 exceptional claims management and servicing, backed by a stable financial position with 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 many of which are qualified lawyers, ex-senior mariners and specialist insurance and claims experts.

For further information visit: www.simsl.com