Fixed premium P&I club strengthens team

Aug 02 2019


Recent promotions and the acquisition of new talent strengthened and expanded fixed premium mutual Eagle Ocean Marine’s (EOM) service capabilities, the insurer claimed.

Growing premium and market share, coupled with continuing profitability, augur well for the future, it added.

EOM is the American Club’s fixed premium P & I and FD & D facility.  It has renewed its reinsurance programme for another 12 months from 1st July on favorable terms at Lloyd’s. 

EOM offers P&I and Freight, Demurrage and Defense insurance to smaller vessel operators, typically those in local and regional trades, who prefer a fixed premium approach to their P & I needs.

It provides the benefits of American Club primary cover and service capabilities, co-venturing the first layer of insurance protection with underwriters at Lloyd’s on a quota-share basis. Lloyd’s syndicates also participate in the facility’s excess reinsurance arrangements for limits up to $500 mill per risk. 

EOM insures ships from all over the world except the US. It enjoys a strong presence in Asia with about 43% of its business currently being derived from Northeast Asia and 41% from South and Southeast Asia. 

However, its share of the market in Europe, the Middle East and Africa has also grown over recent years, and now accounts for about 13% of its total portfolio.

EOM said that its premium income has advanced steadily since it commenced operations in 2011, its compound annual growth rate being almost exactly 15% over the period. Moreover, the insurance year just concluded featured a topline increase in revenue of around 42% over the previous 12 months, which was itself 16% higher than the year before. 

Total premium revenue for the year to 30th June, 2019 was in excess of $13 mill - a record. It is expected that income will continue to grow over the forthcoming 12 months and beyond, it said.

At the operating level, the last several years have enjoyed consistently good results. The incidence and severity of claims remained at moderate levels, reflecting a policy of risk selection and premium pricing, notwithstanding a highly competitive commercial environment. 

Since it commenced operations in 2011, EOM has generated an aggregate combined ratio of under 70%. This, together with confidence in EOM’s prospects generally, informed the recent favourable renewal of its reinsurances, with several new underwriters joining the programme.

Following an extensive redeployment of its human resources, Eagle Ocean Agencies, EOM’s manager, and an affiliate of Shipowners Claims Bureau, the Manager of the American Club, has made several key appointments in recent months. 

For example, in April, Chris Lowe was appointed as EOM Senior Marketing Business Development Liaison, Despina Beveratou assumed the role of Claims Liaison Manager and Jamie Baggett assumed the position of EOM Marketing and Business Development liaison. 

In June, Richard Linacre, a highly experienced P&I professional with a broad industry background, joined EOM’s London team taking on market liaison and business development responsibilities. 

Further key appointments are expected in London on the claims liaison front over the weeks ahead and, from a business development perspective, in Hong Kong over a similar timeframe. Further announcements in this respect will be made in due course.

Speaking in New York this week, Joe Hughes, Chairman and CEO of Eagle Ocean Agencies, said: “We are very pleased to report that EOM continues to enjoy a strong operating performance. Its increasing market share and steady profitability speak to a very promising outlook over the years ahead. We remain determined to make EOM a growing success for all its stakeholders: its insureds, the American Club, its reinsurers and its many other business associates.

“We have been particularly pleased to enhance EOM’s service capabilities in recent months through the promotion of existing staff and the recruitment of new talent. Our EOM team enjoys the highest of reputations within the market, and its continuing success is very much a reflection of the people we have in place to service EOM’s business throughout the world.

“We continue to take the long view when it comes to growing EOM’s position in the market. We will not lose sight of the need to apply careful risk selection, sensible pricing, effective loss prevention and unsurpassed claims service in building EOM’s reputation in the future. Inspired by the traditions of classic P & I mutuality, EOM will continue to occupy a special place in the fixed premium domain for all those who desire a high-quality approach to their insurance needs. We are confident that EOM’s business model will enjoy increasing success over the years ahead,” he concluded.

 



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