The global marine protection and indemnity (P&I) insurance sector looks set for some improvement for the year to February 2014, particularly in terms of underwriting results, says a report by Standard & Poor's Ratings Services. The report is titled "P&I Insurance Clubs' Favourable Capital Positions Should Support Ratings In Choppy Waters Through 2014".
"We believe the expected improvement in underwriting could lead to a much-reduced combined (loss and expense) ratio for IG clubs in the 102-105 percent range, with possibly as many as four clubs recording sub-100 percent ratios," said Standard & Poor's credit analyst Ali Karakuyu. "At the other end of the scale, though, we do not discount the possibility of one or two clubs reaching 120 percent."
After a difficult year ended February 2013, total free reserves for the International Group of Protection and Indemnity Clubs (IG) could increase by up to US$100 million, although this rise is barely perceptible when set against the February 2013 total of just under US$4.1 billion, said the international ratings agency. “We foresee results for individual clubs in the IG ranging from a surplus of $50 million down to a deficit of $20 million for February 2014,” said the report.
After a difficult year ended February 2013, total free reserves for the International Group of Protection and Indemnity Clubs (IG) could increase by up to US$100 million, although this rise is barely perceptible when set against the February 2013 total of just under US$4.1 billion, said the international ratings agency. “We foresee results for individual clubs in the IG ranging from a surplus of $50 million down to a deficit of $20 million for February 2014,” said the report.
The IG is a group of 13 mutual marine clubs that provide P&I insurance cover to more than 90 percent of world shipping.
The report added: "However, although last year's record-breaking number of claims reported to the IG pool has reduced significantly, the sector faces increasing claims volatility as well as an inflationary effect on attritional claims. All these factors add further weight to our concerns regarding a potential weakening of capital among IG clubs generally."
"We believe the expected improvement in underwriting could lead to a much-reduced combined (loss and expense) ratio for IG clubs in the 102-105 percent range, with possibly as many as four clubs recording sub-100 percent ratios," said Standard & Poor's credit analyst Ali Karakuyu. "At the other end of the scale, though, we do not discount the possibility of one or two clubs reaching 120 percent."
After a difficult year ended February 2013, total free reserves for the International Group of Protection and Indemnity Clubs (IG) could increase by up to US$100 million, although this rise is barely perceptible when set against the February 2013 total of just under US$4.1 billion, said the international ratings agency. “We foresee results for individual clubs in the IG ranging from a surplus of $50 million down to a deficit of $20 million for February 2014,” said the report.
After a difficult year ended February 2013, total free reserves for the International Group of Protection and Indemnity Clubs (IG) could increase by up to US$100 million, although this rise is barely perceptible when set against the February 2013 total of just under US$4.1 billion, said the international ratings agency. “We foresee results for individual clubs in the IG ranging from a surplus of $50 million down to a deficit of $20 million for February 2014,” said the report.
The IG is a group of 13 mutual marine clubs that provide P&I insurance cover to more than 90 percent of world shipping.
The report added: "However, although last year's record-breaking number of claims reported to the IG pool has reduced significantly, the sector faces increasing claims volatility as well as an inflationary effect on attritional claims. All these factors add further weight to our concerns regarding a potential weakening of capital among IG clubs generally."