The zero increases reflect lower than average claims, as well as the club’s commitment to help its members cope with difficult trading conditions, North said.
According to North’s chairman Pratap Shirke, “Despite continuing volatility in the bond markets, which has again negatively impacted the Club’s pension scheme, our healthy investment returns and a generally favourable claims experience mean North remains in a strong financial position. As such - and exceptionally in recognition of the difficult trading conditions facing our members - we have decided not to apply any general premium increases next year.
“We will also be returning 5% of mutual premium in respect of the 2016/17 policy year. This will be achieved by issuing a credit note, following renewal, on all mutual owned ships entered in the current 2016/17 policy year, that renew in the 2017/18 policy year. This credit will be applied against that first instalment of the 2017/18 premium,” he explained.
Leading ratings agency Standard and Poor’s confirmed North’s ‘A’ financial strength rating and stable outlook for the 12th consecutive year last January and increased its financial flexibility rating from adequate to strong. “Together with our strategy to hold sufficient capital to meet regulatory requirements as well as buffer us against the risk of adverse years, we have been able to maintain our proud 25 year record of not burdening members with unbudgeted additional premiums,” said Shirke.
Joint managing director, Alan Wilson, said, “For the P&I class, the directors decided not to apply a general increase to mutual and fixed premiums at the February, 2017 renewal and to return 5% of mutual premium for the 2016/17 policy year. Premiums will nevertheless be adjusted to reflect individual member’s claims performance and exposure, plus any changes in the costing and structure of the International Group of P&I Clubs’ excess-loss reinsurance programme. All cargo deductibles below $25,000 will be increased by at least $2,000 per deductible, while crew and other deductibles will go up by a minimum of $1,000.”
Mutual and fixed premiums for North’s FD&D cover will also not be subject to a general increase at the February, 2017 renewal and there will be no change to deductibles.
Joint managing director, Paul Jennings, concluded, “The directors are satisfied North remains in strong financial health and that our renewal strategy will maintain this position. Our over-riding aim is to ensure that all members continue to receive the high levels of service and financial security they have come to expect from us.”