The London P&I Club has reported a “substantial improvement"...
The London P&I Club has reported a “substantial improvement” in its finances and claims experience in the twelve months ending 31 December 2003.
Free reserves increased 23%, up from $82.8m in 2002 to $101.9m in 2003. It said the improved financial performance was derived from all the main components of the result.
Due to the general increase in premium rates set by the London Club Committee in February 2003, premium income increased for the year.
Investment income also recovered during 2003, said the club, producing an overall return on invested assets of 12.33%.
“The encouraging performance extended to progress with the club’s planned programme of controlled tonnage growth, most of it organic, involving substantial additional modern tonnage from existing members,” said the club.
It added: “The club benefited from 2.4m gt of new owned entries at renewal this year, and there were additionally sixty undelivered newbuildings entered for FDD cover, with a total estimated tonnage of 2.8m gt.
But the club said the most encouraging aspect of its results was the low level of claims experienced.
This was despite claims on the international group’s pooling system running at an unprecedented high level.
“Despite a perception in the market that there is an increasing claims trend in P&I business, London Club claims for 2003/4 are now running at a lower level than at any time during the last twenty years, a fact that the Club’s Committee believes is a reflection of the Club’s focus on tonnage with a more favourable risk profile,” it said.
