Good news for shipowners as IG reinsurance rates down.
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 |
| CHARTERED DRY VESSELS | US$ 0.1163 | % – 5.29 |
For a more in depth analysis of the Group’s reinsurance renewal, please click on the below link.