The chief executive of managers for the Standard P&I club said its policy of diversification remains vital in its efforts to peg P&I premium rates.
Speaking as the club issued its full-year results for 2014/15, Jeremy Grose, chief executive of Charles Taylor & Co, said the launch of its Lloyd’s syndicate to offer hull, cargo and other fixed price liability had played a significant role in the ability of the club to deliver a breakeven performance.
The move by some clubs away from their traditional mutual P&I cover into areas such as hull and cargo has been the source of heated debate within the International Group of P&I clubs, with some clubs saying that to do so risks opening the mutuals and their membership to greater exposures.
The club reported a 3% increase in gross tonnage to 135 million from 131 million. However, it said some of its members had not renewed, due either to unacceptable operating standards or to an unwillingness to align premiums paid with risk brought to the club.
The year also saw the opening of its Lloyd’s syndicate alongside the launch of a Singaporean War Risks Mutual in conjunction with the Singapore Shipping Association.
Grose told IHS Maritime: “The Standard syndicate has got off to a strong start with significant interest from the Standard Club’s members in our range of covers and is bringing new accretive business to the Lloyd’s market. The syndicate has also attracted interest from non-members. We believe our strategy of diversifying the club’s business and income streams from non-P&I covers will add further to the financial strength of the club for the benefit of members.”