February 2023 P&I renewals update

Statement from Ian Gooch, CEO of London P&I's management team

London P&I's renewal strategy was focused on keeping rating and deductible levels sustainable for each fleet. In making those decisions, we took account of individual loss records, risk profiles and the part that all Members play in supporting the Club's underwriting results.

We can now report a positive renewal outcome, in line with those objectives. Alongside tailored increases to fleet ratings where appropriate, there were important upward adjustments to deductible levels, particularly for the most high-frequency claim types and to reflect the impact of inflation on claims costs.

London P&I was also pleased to receive the entry of over 1m gt of new mutual business at renewal from both new and existing Members.

Our renewal strategy meant that, in some cases, terms were not offered to Members with consistently challenging records. It also meant that, in some instances, the level of the required increases could not be agreed. Even so, the retention rate was over 90% for those Members offered terms, and we are grateful for their confidence and support.

The mutual entry following the renewal stands at 40.5m gt. By comparison, the position 12 months earlier was 44.1m gt.