Shipowners’ free reserves rise despite financial...
June 28, 2010
THE Shipowners’ protection and indemnity (P&I) club has managed to increase its free reserves by more than 41% year-on-year despite the ongoing financial problems experienced by the shipping industry. As of February 20 this year, the marine mutual’s free reserves stood at $135m, a figure boosted by the 4.5% year on year increase in Shipowners’ gross premiums earned during the 2009 policy year to $174.2m. Net of reinsurance, premiums earned increased by $2.1m compared with the prior year to $150m, while an investment return of $41.6m, an improved of $102.4m when compared with the prior year loss, further fuelled the increase in free reserves. This return came about following a change in the club’s strategy which saw it limiting the amount of equities contained within its investment portfolio. The amount of tonnage entered with the club also increased, this time by 4.5%,...