The Club’s board has decided that a standardized increase for 2020 is not the way for the Club to address the need to improve underwriting results , given the difference in risk profile and current premium level of their membership. The Club will however seek to achieve an increase in premium for 2020, based on individual profile.

The Club is also not applying a standard increase to the existing deductibles.

However on the open years 2016 and 2017, the Club is seeking to address the unsatisfactory loss ratios by raising supplementary calls of 22.5% and 17.5% respectively on P&I entries only. It is the first time a P&I Club has levied supplementary calls since 2012 (Japan P&I Club then), whilst the last time the American Club (and 4 other Clubs) raised supplementary calls was in 2008.

The American Club’s free reserves are USD45.2 million as at 20th Feb 2019, thus the lowest level of free reserves amongst all IG Clubs.

The supplementary calls do not apply to the FD&D entries.

Release calls:

2017: 5%

2018: 20%

2019: 20%

2020: 20%

Full details of the Club’s decisions are available in their Circular.

Tagged with: , , , , , , , ,