CIRCULATED TO ALL MEMBERS, BROKERS AND DIRECTORS
P&I Class
Renewal
The continued underwriting losses of the International Group Clubs coupled with significant reductions in free reserves for most Clubs have continued to receive extensive publicity in recent months. The investment markets remain uncertain and therefore Clubs may continue to see free reserves falling.
Although North of England has relatively favourable underwriting results and investment returns when compared with other Clubs, the Directors have determined that a significant rating increase is needed to maintain the Club’s solid financial footing. Therefore after careful consideration the Directors have decided that it will be necessary to apply a 25% general increase in premiums, plus any additional International Group reinsurance costs, details of which will be notified to Members when available.
As always the claims performance and risk profile of individual Members will be reviewed and will be taken into account when assessing renewal proposals which will be sent to Members in the next few weeks.
Deductibles
In certain cases deductible levels continue to be below industry practice and once again all deductibles and particularly those below US$15,000 will be subject to review and increase where appropriate.
FD&D Class
Renewal
The financial position continues to develop satisfactorily, however the Directors consider that a prudent approach to the funding of the Class is appropriate and they have therefore decided that a 5% general increase in premium rates should be applied for the forthcoming renewal.
Once again individual claims performance and risk profiles will be assessed before renewal proposals are sent to Members.
JP CRICHTON JOINT MANAGING DIRECTOR
North Insurance Management Limited
As Managers on behalf of the North of England P&I Association Limited