Marine insurer NorthStandard has boosted its annual income by 4% to $870m (£690.5m), despite describing a challenging year for the shipping industry.
The Newcastle-based company, which insures one in five ocean-going vessels against a variety of third-party risks, increased 'poolable tonnage' - the volume of ships insured - by 3% to 270m gross tonnes in the 2024-25 year. Full year returns on investment are expected to be more than 5%.
Bosses described a period of continued uncertainty in global shipping, with worldwide large claims increasing due to issues over shipping routes between Asia and Europe, and more ‘shadow’ tankers seeking cover outside the International Group of P&I Clubs system. The uncertainty, along with changing risks and inflation led NorthStandard to apply a 5% general increase across its blue water membership - owners and operators of ocean-going ships.
READ MORE: {}
Thya Kathiravel, chief underwriting officer at NorthStandard, said: "In years like these, shipping relies heavily on its top P&I providers, and the advantages of the mutual pooling system are evident to everyone. It is clear that 2024-25 has posed significant challenges for underwriting, as we are experiencing a predicted increase in high-value claims throughout the year."
NorthStandard's latest numbers follow two years on from the merger of North P&I Club and the Standard Club - creating one of the world's largest providers of mutual maritime cover, which employs more than 300 people at its Newcastle Quayside base and more than 600 people across 13 countries. The mutual provides a wide range of insurance products to shop owners and operators including protection and indemnity (P&I), war risks, strike and delay, hull and machinery, ancillary insurance as well as protection for fishing vessels, inland waterway and coastal trading vessels and specialist products for fish farm operators and angling lakes.
During the year NorthStandard invested in its global office network worldwide and entered several strategic partnerships, including a £23.5m tie-up with Norwegian counterpart NIORD to target the offshore renewables market. There was also investment in its Get Set! portfolio of products.
Nick Wolfe, chief of Specialty at NorthStandard, said: "The new products and strategic initiatives are a valuable opportunity to expand NorthStandard’s reach in rapidly developing markets. By combining our extensive knowledge, experience, and technical expertise, we can better address the evolving needs of our members.”
Nick Jelley, chief financial officer at NorthStandard, said: “Despite strong headwinds, NorthStandard’s capital strength, diversified businesses and service excellence delivers resilience. Growing tonnage and revenues demonstrate that we continue to enjoy the support and confidence of our membership, with the reach, resources and robustness to tackle the challenges of global shipping and the evolving needs of our members in the years ahead."