2016 Management Report & Combined Financial Statements

CIRCULAR REF: 2016/021              

CIRCULATED TO ALL MEMBERS, BROKERS AND DIRECTORS

Following on from Circular 2016/014 North Group Financial Position and Release Calls in May 2016, we are pleased to publish our Management Report and Combined Financial Statements for the financial year ending 20 February 2016:   

2016 Management Report and Combined Financial Statements

The Management Report and Combined Financial Statements show that North Group’s free reserve has increased significantly by US$90 million to US$428.4 million, producing a P&I combined ratio of 73.3%, with the following factors contributing to the overall result:

–       Benign claims experience in 2015/16 policy year with only 19 claims in excess of US$1 million.

–       An improvement in prior years claims development.

–       Low number of Pool claims.

–       Reduction in value of the Group’s pension scheme liabilities of US$18.2 million.

–       Investment loss of US$12.8 million reflecting volatile global market environment.

–       Successful integration of Sunderland Marine.

–       Investment in people leading to more effective claims handling.

This is a positive financial performance for the North Group and reflects a policy of careful Member selection, decreased vessel trading activities, a rigorous loss prevention programme and a robust approach to claims handling.

The Directors’ Report and Bermuda Financial Statements have also been published on our website – please click here to view or download.

AA WILSON and PA JENNINGS

JOINT MANAGING DIRECTORS

The North of England P&I Association Limited