Two more P&I Clubs of the International Group have posted positive financial results for 2014/15, beefing up their free reserves.
Newcastle-headquartered North P&I – the International Group’s second-largest mutual, on a par with the UK P&I Club – reported a net surplus of USD25million which allowed it to increase its free reserve by 8% to USD338.1million.
Its P&I operation made a loss last year due to a combined ratio of 109% and another USD23.9million pension impairment. Investment income was not enough to cover the technical deficit and impairments. However, a USD41million profit contribution from group affiliate Sunderland Marine Insurance, which North acquired last year, turned losses into profits.
According to North’s chairman, Pratap Shirke, “While Sunderland continues as a separate regulated company, we are beginning to reap the mutual benefits of combining the two businesses – not least in being able to pool reserves.”
The smaller American Club, managed out of New York, saw its net income drop to USD1.25million – from USD3.11million in 2013, chiefly due to reduced investment gains last year while claims and operating expenses were marginally higher.
Following another good first quarter, the American Club said it was able to lift its statutory free reserves to USD65million by 31 March, which is up 11% year on year.