North P&I Club Retains S&P 'A' Rating and Stable Outlook

Leading ratings agency Standard and Poor’s (S&P) has affirmed North P&I Club’s ‘A’ financial strength rating and stable outlook for the fourteenth consecutive year. The rating covers North P&I Club and its subsidiary Sunderland Marine, collectively known as North Group.

The ‘A’ rating reflects S&P’s view of the club’s strong business risk profile and very strong financial risk profile. According to S&P ‘North Group’s business risk is supported by the club’s well-established, high quality P&I mutual business, as well as its improving fixed premium business. The group’s financial risk is driven by a well-developed capital base, which gives the club headroom above relatively modest levels of risk from the rest of its balance sheet.’

S&P expect the club to maintain its significant market share in the International Group and predict that North will show a net combined ratio of approximately 104% for the current financial year.

S&P also comment that ‘the club has a record of conservative performance management with a relatively low five-year weighted average combined ratio compared with peers, fuelled by a well-managed reinsurance policy and high-quality underwriting.’ The growth of the fixed premium book, through both North and Sunderland Marine brands, supports the very strong assessment of financial risk over the longer term as they begin to deliver profitability and stability to the group’s earnings on a sustainable basis.

Welcoming the S&P affirmation, North’s Global Director (Finance), Ed Davies, commented “The ‘A’ stable rating and assessment of our capital adequacy as extremely strong demonstrates that we are expected to retain our financial strength during a challenging market environment. The continuing financial strength of the Club underpins our core purpose of enabling our Members to trade with confidence.”

ENDS

For further information contact: Kim Heaselden on +44 191 232 5221 / kim.heaselden@nepia.com, or Nick Arthur on +44 1865 514214 / nick.arthur@blue-comms.com

North P&I Club is a leading global marine insurer providing P&I, FD&D, war risks and ancillary insurance to 195 million GT of owned and chartered tonnage. Through its guaranteed subsidiary Sunderland Marine, North is also a leading insurer of fishing vessels, small craft and aquaculture risks. The Standard and Poor’s ‘A’ rated Club is based in Newcastle upon Tyne, UK with regional offices and subsidiaries in China (Hong Kong and Shanghai), Greece, Japan, Singapore and Sunderland Marine offices worldwide. North is a leading member of the International Group of P&I Clubs (IG), with over 12% of the IG’s owned tonnage. The 13 IG clubs provide liability cover for approximately 90% of the world’s ocean-going tonnage and, as a member of the IG, North protects and promotes the interests of the international shipping industry. For further information visit: www.nepia.com