The London P&I Club reported an operating surplus of USD36.3 million in its 2023/24 financial results, while strengthening its free reserves to USD149.8 million.
Gross earned premium rose by 4.5 percent from the previous year and, with positive underwriting contributions from all product lines, the club’s combined ratio was 83.1 percent. The figures also show a positive investment return of USD17.4 million, equivalent to 5 percent.
The result follows action by the club to bring pricing into line with claims and associated expenses and to improve its risk profile, it said. There was a favourable claims outturn across all severity bands, notably in the USD1million-plus as well as the highest frequency, sub-USD100,000 layers.
“The work over recent years to address discrepancies between fleet premiums and risk profiles has helped to restore rates and deductibles to more sustainable levels, “said Ian Gooch, ceo of London P&I Club. “These measures have fed into the result, especially at the attritional, day-to-day end of the claims range.”
The improved financial results follow a positive renewal cycle for the club in February 2024. The company’s stated targets have been met on rating and deductible increases and an 8.9 percent growth in mutual tonnage compared to the previous year.
Post renewal, the club’s mutual book stood at 44.1 million gross tonnes, rising from the 40.5 million tonnes seen 12 months prior.
Gooch plans to step down this year after 15 years as ceo and 21 years as a director of A. Bilbrough & Co, the management company of the London P&I Club. James Bean of the NorthStandard P&I Club will succeed him.
