NorthStandard's annual review highlights positive progress across key performance indicators.
The global marine insurer recorded increases in premium income, investment returns, and free reserves for the 2023/24 policy year. The combined net ratio, used to measure underwriting performance, also improved from the previous year.
With its enhanced ‘A’ stable rating from S&P, NorthStandard is now one of the world’s largest providers of mutual maritime cover. At the February 2024 renewal date, mutual poolable tonnage increased to over 260 million GT.
NorthStandard’s Annual Review confirmed premium income increased to US$836 million in 2023/24, following the merger of North P&I and The Standard Club in February 2023. This is a significant increase compared to a consolidated premium of US$796 million in 2022/23 and US$700 million in 2021/22. It also recorded a positive 4.9% annual return on investments.
The solid financial performance was confirmed in a sharp increase in free reserves, which reached US$803 million at 20 February 2024, against US$686 million the year before. Net combined ratio performance continued to improve, standing at 93% for the year against the 95% recorded last year.
“Financial stability and resilience in P&I provide the basis for shipping to trade with confidence and this is a robust set of figures “said Cesare d’Amico, Chair, NorthStandard.
Jeremy Grose, Managing Director, NorthStandard, said the club’s six geographically structured ‘bluewater’ sectors delivered positively against targets.
“Confidence in the club was shown with the addition of six new ‘bluewater’ mutual members as of 20 February, while 180 additional ships have been committed, either as of renewal or as new builds and acquisitions due for delivery during the current Policy Year,” he said.
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Grose reiterated that the club would continue to offset mutual P&I volatility by strategically building its diversified Specialty business across its Coastal & Inland, Strike & Delay, Offshore & Renewables, Hull & War, Fishing & Small Vessel and Aquaculture sectors. This approach has led to an overall growth of almost 10% in Specialty premiums.
NorthStandard’s conservative investment policy remained “heavily weighted toward a fixed-income portfolio”, added Grose.
The club’s financial strength and stability are the basis of its continuing growth and development. In April 2024, the global office network expanded with the opening of NorthStandard Marine Consultants Korea Co., Ltd. in Seoul, South Korea.
Investment in new and innovative digital services continued with the launch of its ‘Get SET!’ initiative. Get SET! offers a portfolio of vessel-based loss prevention technologies to enhance situational awareness onboard ships. The club is collaborating with key partners in the development and rollout of these AI-enhanced tools and resources.
“Our excellent renewal in February 2024 emphasised the tremendous support we received from our members, customers, and brokers, for which we are tremendously grateful,” commented Paul Jennings, Managing Director, NorthStandard. “We are committed to leading the market through excellent service, capital strength and innovation and these results provide a healthy foundation in our first year of operation.”
