North Group Financial Position and Release Calls
CIRCULATED TO ALL MEMBERS, BROKERS AND DIRECTORS
CIRCULAR REF: 2015/016
Financial Statements for Year Ending 20 February 2015
The Board of Directors met in May 2015 and approved the Financial Statements for the year ending 20 February 2015 for North P&I Club and Sunderland Marine (North Group). The Management Report and Combined Financial Statements will be published in the next few weeks, and in advance of their publication we are providing Members and policyholders with an update in respect of the Group’s financial position.
The Management Report will show that the North Group’s free reserve has increased to US$338.1 million, with the following factors contributing to the overall result:
- Acquisition of Sunderland Marine contributed US$41 million.
- North P&I Investment return of +4.29% contributed US$25 million.
- Newcastle Quayside property revaluation gain contributed US$7 million.
- North P&I Underwriting loss of US$28.3 million.
- Large number of high-value claims for North P&I: 50 claims in excess of US$1 million.
- Further Group pension deficit of US$23.9 million, US$57 million impairment over two years.
- North P&I Combined Ratio: 109%.
The North Group has maintained a strong financial position with an “A” (stable) rating from Standard & Poor’s reaffirmed in May 2015.
Release Calls
At their recent meeting the Directors also reviewed the position for the P&I Class release calls, which they have decided should be set as follows:
POLICY YEAR | P&I CLASS | FD&D CLASS |
2012/13 | 5% | Nil |
2013/14 | 5% | 5% |
2014/15 | 10% | 10% |
2015/16 | 20% | 20% |
This has been a positive year for the North Group despite a number of challenges and in particular the further financial impairment in respect of the pension scheme. The Group continues to provide financial stability in accordance with the strategy of delivering the highest levels of cost effective service to the membership and policyholders.
AA WILSON and PA JENNINGS
JOINT MANAGING DIRECTORS
The North of England P&I Association Limited