Posted on: 20 February 2024
NorthStandard reports a rise in premium income with positive market responses to its post-merger scale and global operating structure, as well as its continuing service excellence.
Premium revenues exceeded $825 million for the insurance year ending 20 February 2024, against a combined $796 million at the point of merger 12 months ago. The mutual poolable tonnage increased to 256M GT as of 20 February 2024. Specialty business lines which contribute about 20% of the club’s total premium income also reported growth during the year.
“The growth in NorthStandard’s tonnage and revenues confirmed that post-merger additions from new and existing members outweighed the effect of the collaborative rebalancing of tonnage from one or two large members,” said Jeremy Grose, Managing Director, NorthStandard.
“The last 12 months clearly demonstrate that the service benefits of our combined talents, enhanced resilience of scale and continuing financial discipline are more than meeting member and customer expectations.” said Grose.
Within the year-end results, NorthStandard is expecting to report an underwriting surplus and a sub-100% combined ratio, with a positive investment return adding to the club’s free reserves. The positive outcome follows on from a 95% combined ratio figure posted for the 2022-2023 year.
“We would like to thank our membership for their continuing support and commitment through the merger process and during the first year of NorthStandard,” said Thya Kathiravel, Chief Underwriting Officer, NorthStandard. “Underwriting performance remains both strong and stable with strong member confidence throughout the renewal discussions. The successful negotiations of a modest rise in premiums for 2024-25 are in line with our principles of fair and equitable mutuality.”
With the challenges to free and open seas now a feature of mainstream news reporting, the 12 months since NorthStandard’s formal launch had only amplified the critical role stability in the P&I system plays in world trade, said Paul Jennings, Managing Director NorthStandard.
“Based on these excellent results, NorthStandard will continue to evolve its post-merger strategies on digitalisation, sustainability, portfolio diversification and recruitment, and double down on efforts to help governments, regulators and shipping understand each other’s challenges,” he said.
