One of the world's biggest marine insurance firms believes it is on track to increase its market share further and create jobs after extending its offices on Newcastle Quayside.
The North of England Protecting and Indemnity Association has moved back to its head offices from its temporary accommodation in Baltic Place, Gateshead, after a major refurbishment project, which saw it increase floor space from 24,000sq ft to 40,000sq ft.
The 150-year-old firm said it is ready to undergo significant overseas expansion, which it believes will increase its worldwide market share from 10% to 12.5% over the next three years, which would see it insure close to 200 million tonnes of shipping.
The company, which is a marine mutual liability insurer, providing protection and indemnity, war risks and defence cover to 4,270 ships worldwide, plans to open an office in Tokyo this year to bolster its operations in the
Far East, which accounts for around 25% of its business and where it has offices in Hong Kong and Singapore. It also said it had seen few insurance claims from Japanese ship owners affected by the recent earthquake and tsunami.
The firm’s expansion plans also include the launch of an insurance product later this year, which will allow shipowners to buy cover for their ship’s hull and machinery.
The company, which employs 27 staff overseas, is also looking to increase its exposure to the offshore market over the coming years.
Joint managing director Paul Jennings said: “We have steadily expanded since we acquired the building in 1994 and now have 183 people working in the head office and another 27 internationally. Our extended office is considerably larger and with additional appointments taking place, it allows us to continue providing a first-class service to our shipowners for the foreseeable future.”
North East P&I was originally set up by local underwriter J Stanley Mitcalfe around 1860 along with two local ship owners, Henry Nelson and George Bell, to provide insurance against damage to vessels, a problem that had become commonplace as a result of the high density of merchant ships using the Tyne.
The firm, which also has an office in Greece, had been concerned about a spike in claims as a consequence of a quick recovery of the shipping sector, but said that this had been slow in coming and that owners were using their vessels less than expected.
Last year saw the company increase its premiums by 5% to counter inflationary pressures, with a further 3% imposed this year.
Although the firm is confident of its growth, it did say that the overall insurance market would be affected by a culmination of the floods in Australia, the earthquake in Christchurch, New Zealand, and the earthquake and Tsunami in Japan, which have all hit this year.
Jennings said: “Although there are a number of issues facing the insurance market, we are countering these through our expansion plans.
“There are a number of growing markets out there at the moment, particularly in the Asia-Pacific region.”