S&P Global ratings has downgraded financial strength rating of West of England P & I Club and Swedish Club due to negative investment returns. The move reflects the impact turmoil in the equity and bond markets is having on the financial strength of P & I clubs. 

After three years of record Pool claims, no Pool claims have been submitted for this policy year. S&P notes that several Clubs have reported their best half-year results for five years. However, this has been negated somewhat by the losses in the investment portfolios.

WOE had been A- rating since 2016 and was recently re-affirmed by S&P in August 2022. Due to 2.9% investment loss on capital, the club’s capital remains below the AAA benchmark of S&P rating agency. Swedish club had been A- rating since 2019. The Swedish club still remains A- rated as per AM best. 

Since end of 2021, most of the P&I Clubs including Britannia, Gard, North of England, Standard, Steamship, Skuld have been placed on ‘Negative Outlook’ by the rating agency, with now 4 Clubs downgraded (UK Club from A to A- stable, Japan P&I Club from BBB+ to BBB stable in addition to WOE and Swedish).

Tagged with: , , ,