29 May 2024 – NorthStandard’s annual review highlights positive progress across key performance indicators.
The global marine insurer recorded increases in premium income, investment returns, and free reserves for the 2023/24 policy year. The combined net ratio, used to measure underwriting performance, also improved from the previous year.
With its enhanced âAâ stable rating from S&P, NorthStandard is now one of the worldâs largest providers of mutual maritime cover. At the February 2024 renewal date, mutual poolable tonnage increased to over 260 million GT.
NorthStandardâs Annual Review confirmed premium income increased to US$836 million in 2023/24, following the merger of North P&I and The Standard Club in February 2023. This is a significant increase compared to a consolidated premium of US$796 million in 2022/23 and US$700 million in 2021/22. It also recorded a positive 4.9% annual return on investments.
The solid financial performance was confirmed in a sharp increase in free reserves, which reached US$803 million at 20 February 2024, against US$686 million the year before. Net combined ratio performance continued to improve, standing at 93% for the year against the 95% recorded last year.
âFinancial stability and resilience in P&I provide the basis for shipping to trade with confidence and this is a robust set of figures âsaid Cesare dâAmico, Chair, NorthStandard.
Jeremy Grose, Managing Director, NorthStandard, said the clubâs six geographically structured âbluewaterâ sectors delivered positively against targets.
âConfidence in the club was shown with the addition of six new âbluewaterâ mutual members as of 20 February, while 180 additional ships have been committed, either as of renewal or as new builds and acquisitions due for delivery during the current Policy Year,â he said.
Grose reiterated that the club would continue to offset mutual P&I volatility by strategically building its diversified Specialty business across its Coastal & Inland, Strike & Delay, Offshore & Renewables, Hull & War, Fishing & Small Vessel and Aquaculture sectors. This approach has led to an overall growth of almost 10% in Specialty premiums.
NorthStandardâs conservative investment policy remained âheavily weighted toward a fixed-income portfolioâ, added Grose.
The clubâs financial strength and stability are the basis of its continuing growth and development. In April 2024, the global office network expanded with the opening of NorthStandard Marine Consultants Korea Co., Ltd. in Seoul, South Korea.
Investment in new and innovative digital services continued with the launch of its âGet SET!â initiative. Get SET! offers a portfolio of vessel-based loss prevention technologies to enhance situational awareness onboard ships. The club is collaborating with key partners in the development and rollout of these AI-enhanced tools and resources.
âOur excellent renewal in February 2024 emphasised the tremendous support we received from our members, customers, and brokers, for which we are tremendously grateful,â commented Paul Jennings, Managing Director, NorthStandard. âWe are committed to leading the market through excellent service, capital strength and innovation and these results provide a healthy foundation in our first year of operation.â
To read or download the NorthStandard Annual Review 2024, please click here.
About NorthStandard:
NorthStandard is one of the leading providers of global marine insurance products and services across the maritime industries. Established through the merger of North P&I Club and the Standard Club in February 2023 and âAâ rated by S&P Global, NorthStandard has a premium income around US$836M and provides cover for over 365 million GT of owned and chartered tonnage.
From headquarters in the UK and with offices throughout Europe, Asia and the Americas, NorthStandard offers a unique blend of worldwide presence and class-leading expertise across multiple specialist areas, including P&I, FD&D, War Risks, Strike & Delay, Hull and Machinery and ancillary insurance.
Its Sunderland Marine and Coastal & Inland divisions also provide cover for ownersâ fixed premium P&I, fishing vessels, inland waterway and coastal trading vessels and aquaculture. NorthStandardâs comprehensive local market and sector knowledge is underpinned by continuous investments in market-leading digital technologies.
NorthStandard is a leading member of the International Group of P&I Clubs (IG) and is fully committed to upholding the shared objectives of its 12 independent member clubs, which provide liability cover for approximately 90% of the worldâs ocean-going tonnage.
