NorthStandard has declared a 5% general increase in premiums for the 2025 – 2026 period. The club cites multiple reasons for this decision, including higher claim volumes, an augmented exposure to large claims, and persistent supply chain challenges. This move comes as the club anticipates a net combined ratio exceeding 110% for the year ending February 20, 2025, after achieving sub – 100% performances in 2023 and 2024.
By mid – 2024, NorthStandard had registered 14 large claims surpassing $1 million. Out of these, seven were submitted to the International Group (IG) pool. Five Pool claims had been declared by mid – year, which, although significant, is in line with the club’s larger scale. Chair Cesare d’Amico has attributed these claims to alterations in navigational routes, international conflicts, and geopolitical challenges.
In spite of the projected combined ratio increase, NorthStandard forecasts a 6% return on investments and has reported enhanced free reserves, retaining its S&P Global A rating. The club has also been actively expanding its specialty sector business. It has made investments in key maritime hubs such as Tokyo, Piraeus, New York, and has opened a new office in Seoul. Managing director Paul Jennings has affirmed that the 5% general increase will be applicable to all P&I and FD&D members, with custom adjustments based on individual risk profiles. He emphasized that this step is crucial for maintaining equity within the mutual P&I system and for adhering to robust governance norms.
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