The American Club has reported year-on-year growth in premium and tonnage over the recent renewal period, with increases in both metrics posted across all of the club’s insurance lines.
Premium income for the club’s Class I (mutual P&I) entries was up 25% from the prior year, with concomitant tonnage growth of 17%.
Its Class II (mutual FD&D) portfolio also grew, while its Class III (charterers’) business is set to increase by about 10% in 2023 in comparison with the previous 12 months, the company said.
Eagle Ocean Marine, American Club’s fixed premium facility, which serves operators of smaller vessels in local and regional trades, also saw a positive renewal season, the club said.
American Club’s board has mandated an overall increase in expiring premium of 10% for the 2023 policy year, along with rises in certain deductibles. The cash rise on renewing business was just over 9%, with increases in deductibles over and above those generally prescribed, particularly through the application of higher annual aggregate deductibles in several sectors. This provided an additional overall cash value of about 2%, the club said.
While American Club renewed about 95% of its expiring tonnage over the renewal itself, its renewing premium for this year was almost exactly the same as the expiring volume, indicating an uptick in the average rate per ton on the renewing portfolio of just under 8% compared to the year prior.
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“The American Club experienced a positive 2023 renewal season,” said Tom Hamilton, chief underwriting officer for SCB, Inc., the manager of American Club. “Year-on-year tonnage entered for mutual P&I risks grew by 25% to just over 25 million gross tons with an increase in annualized premium to about $108 million. With similar increases in premium and tonnage entered for FD&D and charterers’ risks, as well as a solid portfolio under its Eagle Ocean Marine banner, the American Club commences the 2023 policy year with a premium income in excess of $135 million, an encouraging result providing a sound platform for further expansion over the months and years ahead.”
“The growth of the club’s premium and tonnage over the recent renewal reflects the loyalty and commitment of its members and their intermediaries throughout the world,” said Dorothea Ioannou, CEO of SCB, Inc. “None of this is taken for granted, and will continue to be earned by a dedication to excellence in service provision, supported by a strengthening financial outlook for the club. While business conditions remain challenging in many respects, the club and its managers are sure that the positive results of this renewal will enable further development of the club’s market position in the future.”
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