The North of England P&I Association Limited - Management Report 2014

CIRCULAR REF: 2015/025

CIRCULATED TO ALL MEMBERS, BROKERS AND DIRECTORS

Please follow the link below to view your copy of North’s 2014 Management Report, which we trust you will find of interest.

Management Report 2014

It has once again been a difficult year for global shipping, the slow recovery from the economic downturn, depressed freight rates and liquidity pressures mean that our Members continue to operate in uncertain and unpredictable trading environments. The Club has not been immune to these challenges, however, we are pleased to report a positive financial year to 20 February 2014, with a strong technical underwriting result and further significant progress in achieving the Club’s strategic objectives. Our free reserves have remained stable at US$312 million, despite experiencing the two largest claims in the Club’s history and a change in international accounting policy, which resulted in a significant financial impairment as a US$33 million pension scheme deficit was included on the balance sheet.

We would particularly draw your attention to a number of key developments:

• Standard and Poor’s ‘A’ rating (with stable outlook) maintained for tenth consecutive year.
• Total net assets of US$935.9 million.
• Combined ratio of 90.1%
• Capital adequacy comfortably exceeds anticipated Solvency II regulatory requirements.
• Total entered tonnage increased to 180 million GT at 20 February 2014 renewal.
• Completion of merger with Sunderland Marine.

Our successful merger with Sunderland Marine, thus forming the “North Group”, will provide enhanced financial stability for our Members, a greater diversity of product lines, continued service excellence and a stronger competitive position. These principles are reflected in the North Group’s strategic vision to be “the most cost-effective marine insurance group providing the highest levels of service”. 

Although it has been a challenging year, we have met those challenges with confidence and determination and as we move forward, we will continue to ensure that we are providing the highest levels of service to our Members.

This year we have produced the Management Report in electronic format only, as part of our commitment to Corporate Social Responsibility initiatives; to minimise our impact upon the environment. All of North’s publications are available online at: www.nepia.com/publications

AA WILSON and PA JENNINGS

JOINT MANAGING DIRECTORS

The North of England P&I Association Limited