Marine insurer NorthStandard's first year of trading as a combined business has "exceeded expectations", its latest annual report shows.
Premium income reached roughly £657m (US$836m) in the mutual's 2023/24 year - an increase on the £626m (US$796m) consolidated premium calculated for 2022/23 and £550 ($700m) in 2021/22. A 4.9% annual return on investments was also reported.
The robust results follow the merging of Newcastle-based North P&I and London counterpart Standard Club in February 2023, in a move that created one of the largest marine insurers in the world. Bosses have pointed to continued support from members, customers and brokers, helping to make the transition a successful one.
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In addition to the premium income figures, NorthStandard recorded a boost to its free reserves to £631m (US$803m), up from £539m (US$686m) the year before. Meanwhile its net combined ratio - a measure used by insurance companies to gauge performance - improved from 95% to 93%.
Jeremy Grose, managing director of NorthStandard, said the clubs six ‘bluewater’ sectors - products and services for larger, ocean going vessels - delivered positively against targets. He said: "Confidence in the club was shown with the addition of six new ‘bluewater’ 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."
Mr Grose said the club would continue to offset mutual protection and indemnity (P&I) volatility by building its diversified Specialty business across its markets of coastal and inland, strike and delay, offshore and renewables, hull and war, fishing and small vessel and aquaculture. NorthStandard said the approach has led to growth of almost 10% in Specialty premiums.
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Earlier this year NorthStandard set out ambitions to tap further into the Asian market with the setting up of an office in Seoul in South Korea, an operation called NorthStandard Marine Consultants Korea Co, Ltd. It followed the launch of a Singapore headquarters in 2023, and marked the firm's eighth office in the Asia Pacific region.
Meanwhile the insurer continued to invest in digital services to help improve the safety of its ship operators. It launched its 'Get SET!' suite of loss prevention technologies that it said would enhance situational awareness onboard ships.
Paul Jennings, managing director at NorthStandard, said: "Our excellent renewal in February 2024 emphasised the tremendous support we received from our members, customers, and brokers, for which we are tremendously grateful. We 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."
Cesare d’Amico, chair of NorthStandard, added: “Financial stability and resilience in P&I provide the basis for shipping to trade with confidence and this is a robust set of figures."