The London P&I Club said the 2003/04 financial year saw its free reserves increase and claims fall, leaving it in a healthy position.
Free reserves increased 25% to $101.9m, up from $82.7m for the previous financial year, said the club.
It added that claims were running at a lower level that at any time in the previous 20 years.
Chairman John M Lyras, said: “It is particularly satisfying to note that, despite the unusually long period of three years over which negative factors have influenced our industry, this is the second consecutive year in which the London Club has reported a positive result.”
Lyras paid tribute to the club's members for their support during the period of adjustment from the low premium levels which the club was able to maintain during the late 1990s.
Increases in advance call rates achieved in recent years have been designed to maintain the club's record of consistent Supplementary Calls, which have been stable now for twelve successive years, it said.
Lyras said the club's low levels of claims reflected the selectivity of its underwriting, resulting from the decision to focus on underwriting larger ships, from tactical decisions based on the ship inspection programme, and from the club's knowledge of the causes of claims generally.
The club reported an increase in tonnage at the 2004 renewal, with the majority coming from existing club members.
Almost 30% of vessels newly entered in the club at renewal were newbuilds which, together with the termination of membership of some older vessels, had the effect of reducing the average age of vessels entered in the London Club to just in excess of thirteen years, it said.
