North East shipping insurance specialist North P&I Club is providing cover for more ships than ever before, latest results reveal.
The Newcastle Quayside-based firm insured an additional 20 million tonnes of international ocean-going vessels – referred to in the industry as “tonnage” – bringing the total to 160 million gross tonnes.
North, which operates across the world, saw premium income for the 2019/20 year increase by £1.6m to £281m.
It comes as North has diversified its business to offer shipping customers, known as members, a broader range of insurance products.
That growth includes the launch of North Hull which offers new products for ocean-going vessels, and the hull and machinery products offered via North’s Sunderland Marine business.
During the year North saw return on investment of £52m, a £28.5m increase on the previous year’s results.
Paul Jennings, chief executive of North, said: “In the last year, North insured more tonnage than ever before, continued to diversify our income base to enable our members to trade with confidence and strengthened our team; and we are now supporting members through the COVID-19 pandemic.
“We’re extremely proud to be a North East-headquartered business that is one of the leading marine insurers in the world, providing critical to cover to this highly important industry which is responsible for keeping supplies of products moving.
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“This is North’s 160th year, and what better way to mark that occasion than by protecting even more ships than ever before.”
Overall an increase in the number and value of claims – circa £6.5m reflects North’s growth in the number of members insured.
Two significant shipping incidents impacted North’s underwriting figures – the capsizing of cargo ship the Grande America in the Bay of Biscay and the capsizing of another cargo ship, the Golden Ray, off the coast of Georgia, US.
The claims are two of the largest ever handled by North and the total cost of dealing with the Golden Ray claim is expected to reach £324m.
Mr Jennings added: “It’s unusual for two incidents of the scale of the Grande America and Golden Ray to occur in the same year.
“Our job, as a protection and indemnity club, is to protect our members – and that is exactly what we’ve done by working extensively with local authorities and international experts to ensure that these claims are handled in a cost effective way.
“As a highly strong and sustainable club we can offer robust support in instances such as this.”
In response to the COVID-19 pandemic, North’s international team have continued to work remotely.