The Standard Club’s continued strategy of attracting carefully selected tonnage, whilst maintaining underwriting discipline, has seen it achieve a combined ratio of 97% for the policy year 22/23 (as of August 2022). However, with a key driver for the forecast result being an unexplained drop in large P&I claims across the International Group, the club believes further work is required to reach the desired underwriting position.
On November 22, the club has announced that it is seeking a 10% increase on P&I and Defense class premium rates for the 2022/23 policy year. The decision comes against a backdrop of a difficult investment environment and inflationary pressures on claims costs.
Standard Club Chief Executive Jeremy Grose said: “The club is forecast to deliver a materially better underwriting result in this policy year than the previous year, in the region of 97%.
“Claims are down and we continue to maintain our ‘A’ rating with S&P. However, prior policy years have shown some deterioration and our five-year combined ratio average is still above our board’s risk appetite. 2022/23 has so far been a year of abnormally low claims and we are conscious of the potential for a more normal pattern of future claims.
“We believe that an increase in premium is required to ensure a sustainable club with adequate capital strength and additional contributions will be sought from members with adverse records.”
The club’s investment portfolio, although defensively positioned, delivered an investment return at 20 August 2022 of minus 4.9%.
No calls are expected in addition to the Estimated Total Premium (ETP) for all open policy years in either P&I or Defense classes.
The Standard Club is undertaking a merger with North P&I to become NorthStandard, with effect from February 20, 2023. The club is committed to providing excellent service and support to members at the lowest sustainable price.
‘NorthStandard will allow us to build even greater stability, service and strength to support our members through operational, financial and technical performance,” added Grose.
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