Free Reserves Surge To $149.8M For London P&I Club

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Financial Highlights

The London P&I Club has reported a successful financial year for 2023/24, achieving an operating surplus of US$36.3 million. This has strengthened the Club’s free reserves to US$149.8 million. Additionally, the Gross Earned Premium saw an increase of 4.5% from the previous year, contributing to the positive financial outlook. At the same time there was a positive investment return of US$17.4m, equivalent to 5.0%.

The London P&I Club attributed these positive results to strategic actions taken to align pricing with claims and associated expenses, as well as efforts to improve the Club’s risk profile. There was a notably favorable claims outcome across all severity bands, particularly in claims over US$1 million and those under US$100,000.

Ian Gooch, CEO of The London P&I Club, commented: “The work over recent years to address discrepancies between fleet premiums and risk profiles has helped to restore rates and deductibles to more sustainable levels. These measures have fed into the result especially at the attritional, day-to-day end of the claims range. It has been a concerted – and ongoing – effort with the strongest backing of the Board and we are grateful for the continued support and confidence of all of Members, Assureds and Brokers’’.

Positive Renewal and Growth

The announcement of the improved financial results follows a positive renewal for the Club in February 2024, with targets met on rating and deductible increases and an 8.9% growth in mutual tonnage compared to the previous year. Post renewal, the Club’s mutual book stood at 44.1m gt, up from the 40.5m gt seen 12 months prior.

Later this year Ian Gooch, will be stepping down after 15 years as CEO and 21 years as a Director of A. Bilbrough & Co., Managers of The London P&I Club. Ian Gooch will be succeeded by James Bean, from North Standard P&I Club. To ensure an orderly transition, Ian will remain with the Bilbrough team.

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Source: Ajot

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