Tyneside shipping insurance specialist North P&I Club has posted continued growth after diversifying and raising its premiums.
The Newcastle based company, which counts global shipping operators among its customer base, is set to release its full annual results later this year which will outline its premium income for the financial year.
In its latest update following the annual renewal date, however, the mutual said it has increased premiums to reflect market conditions after a year of progress.
The annual “renewal” date of February 20 is common to many other maritime protection and indemnity insurers in the market, as it historically marks the start of ice-free passage through the Baltic Sea.
It is when shipping operators renew membership of the Club and this year is the first in North’s 160-year history to have taken place virtually, without face-to-face discussions.
This year, North planned to reduce its exposure to certain areas of the market in which it saw risk.
This resulted in a small reduction in the “tonnage” – the combined number of ships insured expressed in weight – to more than 245 million gross tonnes.
Chief underwriting officer Thya Kathiravel said the market remains competitive.
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He said: “This is a reduction in overall tonnage which was planned and expected as part of our strategy to de-risk.
“I’d nonetheless like to acknowledge the trust placed in us by the membership during the last year, with a very high retention rate and a number of members transferring more business to North.”
North’s freight, demurrage and defence business – which covers members for claims not otherwise protected by North’s other forms of insurance – was once more strongly supported, with combined owned and chartered tonnage projected to be 185m gross tonnes.
Chief executive Paul Jennings said North had retained its ‘A’ capital rating from S&P Global with AAA capital for the 17th consecutive year – an indicator of its financial strength.
Mr Jennings added that the mutual’s diversified businesses Sunderland Marine and North Hull achieved strong premium income growth.
He added: “The combined diversified income has increased significantly. Our newest business line, North Hull, launched in July 2020, has had a great start delivering its initial business plan targets. Our Owners’ Fixed Premium P&I facility, launched in September 2019, is also well ahead of target.
“This result in a difficult year adds to our financial strength and continues the growth and diversification of our business.
“With our people working from home for 11 of the last 12 months, this year has been as challenging for North as it has been for others in shipping, but it has also been successful for the ongoing strategic development of the North Group.”