February 2023 P&I Renewals update

22 February 2023

Statement from Ian Gooch, CEO of the Club’s management team

Our renewal strategy focused on the sustainability of rating and deductible levels for each fleet taking into account individual loss records, risk profiles and the part that all Members have to play in balancing the Club’s underwriting results.

We can now report a positive renewal outcome, in line with these objectives. In addition to tailored increases to fleet ratings achieved as and where appropriate, there were important upward adjustments to deductible levels, particularly in respect of the most high frequency claim types and reflecting the impact of inflation on claims costs. We were also pleased to receive the entry of over 1m gt of new mutual business at the renewal from new as well as existing Club Members.

Our renewal strategy meant that there were some cases in which 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. However there was a retention rate of over 90% for those Members that were offered terms - and we are grateful for their confidence and support. The Club’s mutual entry following the renewal stands at 40.5m gt; the comparative position 12 months ago was 44.1m gt.