Theincrease by the second biggest of the P&I mutuals is in line withexpectations, with the club reporting to members that it anticipates a smalldeficit for the year to February 2014.
Theclub deferred collection of the final instalment of the current year’s premiumto December 2014 and will repeat the practice at the renewal, with the finalpayment not required until December 2015.
Thedelayed payment is designed to assist members cash flow, at a time of depressedfreight rates and tough times for many shipowners.
Butthe deferred amount due in December 2015 drops to 20%, rather than the 30% allowedat the last renewal.
Clubchairman, Pratap Shirke of the ASP ship management group, says the ‘A’ ratedmutual remains financially strong and notes members have not faced a cash callfor more than 20 years.
Hesaid the general increase reflected a renewal strategy designed to maintain thefinancial health and stability of the club and ensure the record of notimposing unbudgeted supplementary calls was maintained.
“However,the club has not been immune to the impact of volatile investment markets,premium dilution associated with fleet renewal programmes and a deterioratingclaims environment, which has seen an escalation in the number and cost ofclaims, particularly over US$1 million,” added Shirke.
“Investmentmarkets were particularly volatile in the first half of the year, andconsequently the contribution from investments is likely to be lower than inprevious years. As a result a smallreduction in total free reserve is therefore currently anticipated,” warn jointmanaging directors, Alan Wilson and Paul Jennings, in a notice to members.
The7.5% general increase applies to the North of England’s P&I class, with alldeductibles below $25,000 to be increase by $1,000.
Allexternal fees, costs and expenses are also to be subject to a 25% deductibleper claim or incident with a minimum contribution of $1,000 and the maximumcapped at $10,000.
Ratesfor freight, demurrage and defence (FD&D) cover are to be increased by 5%.
TheNorth of England Club insuring an owned fleet of 130m gross tons, with 40m gt ofchartered tonnage on top, had a free reserve of $312m at the start of this yearfollowing a deficit of $1.8m.
Theclub is currently in merger discussions with neighbouring fishing industrymutual, Sunderland Marine.
SteamshipMutual meanwhile confirmed it would be seeking a 10% general increase against abackground of high overall claims.
Thesaid it had achieved a positive but modest investment return for the year todate.
