A combination of 4 years’ profits for International Group reinsurers, increased market capacity, increased risk retention by the Group’s captive, Hydra, and the use of a third multi-year fixed placement has enabled the Group to negotiate a successful renewal of the General Excess of Loss programme and the excess War P&I cover, resulting in rate reductions for shipowners and charterers across all tonnage categories.

As a side note, the individual club retention will increase with effect from 20 February 2016 to US $10 million, and the attachment point on the GXL contract will remain unchanged, at US $80 million, for the 2016/17 policy year.

The below table show the breakdown of the rate reductions per vessel category.


2016 / 17 rates summary
Vessel Category 2016 rate per gt % change from 2015
DIRTY TANKERS US$ 0.6567 % -10.25
CLEAN TANKERS US$ 0.2816 % -10.26
DRY CARGO VESSELS US$ 0.4537 % – 7.18
PASSENGER VESSELS US$ 3.5073 % – 7.19
CHARTERED TANKERS US$ 0.2380 % – 5.63

For a more in depth analysis of the Group’s reinsurance renewal, please click on the below link.