London Club ahead of the pack on underwriting performance

Marine mutual the London P&I Club has come out ahead of the pack on its underwriting performance for the 2024/25 policy year, with an outcome significantly better than most of its rivals.

The development was confirmed this week as the marine mutual published its financial results for the period, which saw an operating surplus of $21.3m and free reserves strengthened to $171.2m. Gross earned premium income increased 12% to hit $159.8m.

The combined ratio was 101.7%, giving a three-year weighted average of 103.9%.

This compares with combined ratios of 104% for West of England, 112% for Skuld, 113% for Steamship Mutual, 114% for NorthStandard, 116% for the UK Club and 138% at Britannia.

Meanwhile, the London Club’s investment return on assets under management and cash was 6.3%, contributing $24.7m to the operating result.

“This positive result reinforces the London Club’s planned approach to focus on the sustainability of its rating and deductible levels, alongside growth based on attracting quality shipowners from markets worldwide,” the club said in a statement.

There was another boost in the shape of an outlook upgrade from rating agency S&P Global Ratings, which improved the outlook from BBB (negative) to BBB (stable) last December, following a sustained period of  improved operating performance.

Last February’s renewal also led to a 12.6% growth in entered tonnage compared to the previous year.

The club’s mutual book now stands at 49.5 million gross tonnes, regaining the volume it lost over the past four years, but with a significantly stronger premium base.

This article first appeared in Lloyd’s List, a sister publication of Insurance Day