The Britannia P&I Club has announced it will pay back US$20m to members after declaring a US$80.6m surplus for the 2017/18 year.
Britannia’s P&I members have now benefited from US$61m of deferred call waivers and capital distributions since October 2016 as well as nil General increases for both P&I and FD&D calls for 2017/18 and 2018/19.
Britannia said its ability to continue to assist Members is a consequence of repeated strong underwriting results; with 2017/18 seeing a US$64.6m underwriting surplus and a US$48.6m gain on its investment portfolio. Overall, the Association’s balance sheet reserves rose by US$50.6m, after taking into account the US$30m capital distribution made to Members during 2017.
A relatively benevolent claims environment also contributed to Britannia’s largesse. While higher than in the 2016/17 policy year, claims during the 2017/18 policy year were well within projection.
Large claims expected to cost the Association US$1m or more have remained consistent in number but returned to the higher average seen in earlier years. International Group Pool claims have also seen an increase, with a number of high profile casualties. Nevertheless, they remain within projection.
In April this year Britannia announced a number of strategic appointments to boost its presence in Asia. Club underwriter John O’ Flaherty now heads up the Club’s new Singapore operation. Meanwhile London-based underwriter, Richard Inman is expected to locate to the Club’s Hong Kong office this summer.
“Two of our core values are maintaining our financial strength while supporting mutuality,” said Tindall Riley (Britannia) chief executive, Andrew Cutler.
“The Association’s 2017/18 report and financial statements show another excellent result for the year. More importantly, the Board’s decision, at its meeting in Tokyo, to declare another USD20m capital distribution passes a proportion of the surplus straight back to the membership. To be able in the past 18 months to return USD61m in to our Members through deferred call waivers and capital distributions, while maintaining the Association’s S&P A (stable) rating, re-affirms our mission statement,” he added.