23-12-2016 Strike Club bucks zero increase run, By Jim Mulrenan, TradeWinds Weekly
The Strike Club is to seek a 10% general increase in premium against the background of a potential loss for the year that ends on 31 January.
The rate rise is similar to that required at this year’s renewal and reflects that the Strike Club is trading in a rather different market to the protection-and-indemnity (P&I) mutuals, where there are no general increases but premium discounts from a number of clubs.
The loss that is in prospect is about $3.1m, so $0.7m smaller than last year’s deficit, but it will still bite into the $27.9m reserve with which the club started the current year.
The Strike Club is telling members that despite a more than 95% renewal rate, the depressed shipping market is resulting in a downturn in business volume, with lower insured sums also hitting premium income.
Although operating expenses have reduced by $1.5m since 2015, lower premium income means costs have increased in relative terms.
In contrast to the P&I clubs, where there has been an extended benign claims experience, the Strike Club was hit by higher claims in the 2014 and 2015 years.
The club, managed by Charles Taylor, the London Stock Exchange-listed company that also runs the Standard P&I Club, however reports that the performance of the current year is “notably better”.
The Strike Club, the market leader in delay insurance for ships, says it remains focused on offering “the most comprehensive and best value marine delay insurance in the market” with its mutual structure ensuring cover is at an “attractive sustainable price”.
The club, insures about 2,700 vessels of 125 million dwt against delays with a shore origin and about 1,200 ships of 50 million dwt against delays arising from crew labour disputes or other onboard issues.
Members include Louis Dreyfus Armateurs, Rickmers Trust, Graig group, China Navigation, Furness Withy, Western Bulk, Clipper group, Pacific Direct Line, Toko Kaiun Kaisha Leonhardt & Blumberg and Bunge.