Newly merged shipping insurance group NorthStandard has published details of its £626m ($796m) premium income following a "challenging" year across the maritime sector.
The Newcastle-based mutual, which insurers almost one in five of the world's ocean-going ships, said new figures for the 2022/23 year which combine North P&I and Standard Club final statements as separate firms show it is well placed to grow. In its first annual review, NorthStandard described 2022 as a year impacted heavily by the Russian invasion of Ukraine and its knock-on effects on supply chains and inflation.
An "unusually benign" year for claims within the collective International Group - of which NorthStandard is one of 12 constituent clubs - helped performance, as did premium increases and diversification. Meanwhile there were losses of about £62m ($80m) across the group's investments, up from a combined £25.1m ($32m) the year before.
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Paul Jennings, one of two managing directors at NorthStandard, said: "NorthStandard, with a heritage in the North East stretching back over 160 years, is a formidable organisation that is continuing to set the pace of change throughout the global shipping industry. We now insure almost one in five ocean-going vessels that move goods from all sectors around the globe daily, which is a remarkable achievement.
"Our annual performance results are very encouraging and demonstrate that we’re in a very good position to build upon this further, pushing ahead with growth and expansion plans into new specialist markets. We’re currently assessing new business opportunities in the Middle East, Asia, and the USA, which may catalyse further employment opportunities here in the region."
Fellow managing director Jeremy Grose said: "We’re operating globally and leading the way as the ‘go-to’ marine insurer, but our heart and soul are very much rooted in the North East as a key employer for the region, especially here in Newcastle. Our people, with their knowledge and experience, are unparalleled across the whole marine insurance sector, and they have, without doubt, helped to create a dynamic, innovative, and highly successful company."
The 650-strong firm said its speciality business - covering small fishing vessels, aquaculture operators, renewables operators and protecting ship operators against strike delays - has contributed significantly to its success, generating £157m ($200m) in premiums. Mr Jennings has previously signalled the group hopes to expand that part of its business.
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Mr Jennings added: "Our people are at the core of our business, and our efforts to retain existing staff, develop their specialist knowledge and experience, and recruit a new generation into the industry remains a key priority going forward. This makes us a world-leading organisation which can only have a lasting, positive benefit for the North East region, the local economy, and the wider business community.
"The recent merger certainly created a very solid platform for future growth and diversification as well as new investment in advanced technologies. It’s a very exciting time for NorthStandard and one that has certainly created a significant step change within the global marketplace.”