Professional Documents
Culture Documents
CONTENTS
01
03
OWNERS MARKET
Introduction.......................................... 54
Executive Summary............................... 08
Income Development............................. 56
Per GT Development.............................. 60
02
INDUSTRY STATISTICS
CHARTERERS MARKET
P&I Charterers & Traders
British Marine....................................... 24
Carina................................................... 26
Hanseatic Underwriters......................... 30
Hydor AS.............................................. 32
Lodestar Ltd......................................... 36
Navigators P&I...................................... 38
Raetsmarine BV.................................... 42
Rosgosstrakh Ltd.................................. 44
NON-IG MUTUAL MARKET FACTS & FIGURES
Korean Shipowners Mutual P&I............. 46
04
Charterama BV..................................... 48
Charterers P&I Club.............................. 50
Norwegian Hull Club............................. 52
05
CONTACTS
Marine Division Contacts....................... 88
01 COMMERCIAL
P&I MARKET
REVIEW 2015
MALCOLM GODFREY
EXECUTIVE DIRECTOR
WELCOME TO OUR
ANNUAL COMMERCIAL
P&I MARKET REVIEW
Arthur J. Gallagher is one of the leading global marine
insurance brokers in the P&I industry sector. One of
our key principles is transferring all pertinent market
statistics, information and views on the various P&I
insurers to our clients and business partners, which is
essential to remain successful this competitive market
environment.
The Arthur J. Gallagher Commercial P&I Market Review
is the first in-depth review of its kind and compliments
our mutual IG Club Annual Pre-Renewal P&I Review
offering, which will be published later this autumn.
We closely monitor and analyse the P&I market, as it
continues to evolve with its ever changing products,
service, security, strength and flexibility. Our view at
Arthur J. Gallagher is that the Non-IG market is an
important part of the maritime insurance industry, offering
products and services to the small ship sector, where
in previous years IG-P&I Clubs have in the past lacked
enthusiasm to participate in this risk profile.
As part of the markets evolution, we note however that
some of the IG-Club managers have developed new fixed
P&I facilities and moved into the commercial market to
diversify their product range, in order to increase revenue
streams to enhance their free-reserves further.
Malcolm Godfrey
Executive Director
Marine Division | Specialty Risks
NORWAY, ARENDAL
Gard AS
UK, NEWCASTLE
North of England
UK, LONDON
UK, LONDON
American Club
GREECE, ATHENS
Aigaion Insurance Co. SA
NORWAY, BERGEN
Norwegian Hull Club
NORWAY, OSLO
NORWAY, OSLO
Hydor AS
Skuld P&I
SWEDEN, GOTHENBURG
Swedish Club
RUSSIA, MOSCOW
Ingosstrakh
Rosgosstrakh Ltd
JAPAN, TOKYO
Japan P&I Club
GERMANY, HAMBURG
KOREA, SEOUL
Hanseatic Underwriters
NETHERLANDS, ROTTERDAM
RaetsMarine BV
Charterama BV
COMMERCIAL
P&I MARKET
INTERNATIONAL
GROUP P&I CLUB
CHINA, BEIJING
China P&I Club
EXECUTIVE SUMMARY
ALEX VULLO
ASSOCIATE DIRECTOR
OWNED TONNAGE
+4.56%
(2.1M GT)
10
TOTAL NON-IG
SPENDING AT
US$ 400M
2.87%
AVERAGE RATE
PER GT
US$ 6.516
OWNED P&I
MARKET PREMIUM
+ 1.56%
(US$ 4.6M)
50,000
$7,600
$7,200
40,000
$7,000
$6,800
35,000
$6,600
$6,400
Tonnage (000s)
45,000
$7,400
30,000
$6,200
$6,000
2008
2009
2010
2011
2012
2013
2014
25,000
Total Owned GT
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$0
2008
2009
2010
2011
2012
2013
2014
11
MARKET CYCLE
6%
4%
2%
Percentage
0%
-2%
-4%
-6%
-8%
-10%
2009
2010
2011
2012
2013
2014
TWELVE MONTH MARKET DEVELOPMENT BY OWNED P&I PREMIUM INCOME (USD 000)
12
MARKET
2013 P&I
owned income
USD 000s
British Marine
2014 Change
MARKET
2014 P&I
owned income
USD 000s
Result
+/ (USD
000d
$100,000
British Marine
$97,500
-$2,500
Raetsmarine
$52,000
Raetsmarine
$52,500
+$500
Osprey
$30,000
Lodestar
$30,000
+$5,000
Lodestar
$25,000
Osprey
$27,500
-$2,500
Ingosstrakh
$21,800
Navigators
$20,000
-$1,430
Navigators
$21,430
Hanseatic
$19,500
+$1,200
Hanseatic
$18,300
Ingosstrakh
$16,500
-$5,300
Hydor AS
$9,000
Hydor AS
$14,000
+$5,000
Carina
$7,250
Carina
$10,000
+$2,750
10
Eagle Ocean
$6,500
10
Eagle Ocean
$7,000
+$500
11
Rosgosstrakh
$4,800
11
Rosgosstrakh
$6,200
+$1,400
2014
$10.000
$8.000
2014
Average
$6.000
$4.000
$2.000
$0.000
Navigators
British Marine
Lodestar
Ingosstrakh
RaetsMarine
Carina
Rosgosstrakh Ltd
2014
$100,000
$80,000
$60,000
$40,000
$20,000
$0
Lodestar
Osprey
Underwriting
Agency
Navigators
Hanseatic
Underwriters
Ingosstrakh
Insurance Co
Hydor AS
Carina
Eagle Ocean
Marine
Rosgosstrakh
Ltd
13
BUSINESS ENVIRONMENT
The market is flooded with new business enquiries in
the fixed premium sector; however the hit ratio for the
majority of insurance providers is between 10% and
20%. The individual markets retention rate is, however,
more important for insurers to have a reasonable level of
stability in their portfolios. The chase for premium income
continues to promote market volatility driving rates down
further and therefore this portfolio volatility will prove to
be a fundamental challenge for all insurers in the coming
years.
CONSOLIDATION
Market consolidation would help to drive the challenge,
posing a threat to the IG P&I Clubs whilst, however,
it would seem as if the majority of business transfer
still remains within the commercial market itself. With
fixed market underwriters grappling for market share,
the focus for growth will predominately stay within the
sector taking the immediate focus away from competing
with the IG market. Once a commercial market reaches
the established category we have observed that their
premium income generally tends to fall each year, feeding
the next group of new entrants diluting premiums further.
Two examples of this are British Marine the largest fixed
premium insurer underwrote US$ 133M in 2010 and
in 2014 this dropped down to US$ 97M (-36.92%)
and Osprey also have seen a 47.27% drop in premium
income since 2010. The new entrant example however
is Hydor AS starting with US$ 2 million in 2011 and in
2014 reporting premium an income of US$ 14 million.
In more recent news, Mitsui Sumitomo has acquired
Amlin for 3.5bn, market sources suggest that Amlin
will remain as the go-to London syndicate at Lloyds.
We at AJG do not expect to see any major changes at
RaetsMairne.
BILLION DOLLAR LEAGUE
In our last commercial market review, we at AJG talked
about the need for diversification becoming important
for future success. Whilst there havent been any
fundamental changes in respect of new products on offer,
a number of fixed premium providers have joined the
USD 1 billion league - having the ability to offer larger
limits of liability in an attempt to challenge International
14
$12,000
48,000
$11,800
46,000
$11,600
44,000
$11,400
42,000
$11,200
40,000
$11,000
38,000
$10,800
36,000
$10,600
$10,400
34,000
$10,200
32,000
$10,000
2009
2010
2011
2012
2013
2014
Tonnage (000s)
$80,000
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
2008
2009
2010
2011
2012
2013
30,000
$0
2014
15
There is an expectation at
AJG for the market cycle
to continue on this current
trajectory with the average
(owned) rate likely to reduce
further in the region of 2%
to 3% in 2015.
16
THE OMNIBUS RULE - The fixed premium market does not benefit
from the IG Club Omnibus Rule, which allows the individual IG Club
boards to decide whether they can indemnify a Member in difficulty.
on the assureds individual merits and loss record, although there may
appropriate level. This is where a strong broker like AJG will add value!
have seen many P&I Clubs insert annual mandatory uplifts/ requirements,
the servants of the Club, the overall control of the Clubs are in the
hands of its Members and its ship owner boards, who decide on policy
blue cards which are not approved by a number of flag states or port
business. All of the non-IG facilities are free from the constraints of
Act), where any vessel over 300 GT requires a valid COFR and COFR
International Group P&I Club, most of the fixed premium facilities are
onto the assured. It is important to note that the ability of each individual
18
DIVIDENDS - Some of the P&I Clubs pass back dividends, in the form
and may come with additional costs, which would ordinarily be passed
The following table identifies the current facilities that are able to provide fixed premium P&I insurance:
International Group P&I Club
Insurance Company
Gard Offshore
British Marine
(a brand of QBE Europe)
Carina
(Lloyds of London)
Navigators P&I
(Navigators)
Charterama BV
(Royal Sun Alliance)
North of England
and Sunderland Marine
Raetsmarine BV
(Amlin Europe)
Rosgosstrakh Ltd
Hanseatic P&I
(Lloyds of London)
Hydor AS
(Brit Syndicate)
19
INTERMEDIATE
(5-10yrs)
MARKET EXIT
Ingosstrakh
(Est. 1974)
Charterama BV (RSA)
(Est. 2009)
UK P&I Club
InterCoastal Shipowners BV
(2011)
Osprey Underwriting
Agency (Est. 1991)
Rosgosstrakh P&I
(Est. 2010)
Raetsmarine BV (Amlin)
(Est. 1993)
Korea P&I Club
(Est. 2000)
Navigators P&I
(Est. 2004)
Hanseatic P&I
(Est. 2005)
20
2014
OCTOBER
Navigators P&I announce the recruitment of Jason Riley from the UK P&I Club
MSA of P.R. China approves Blue Cards issued by Hanseatic P&I. Chinese flagged
vessels may now be underwritten by Hanseatic P&I accordingly.
2015
NOVEMBER
DECEMBER
Royal Sun Alliance provides the first USD 500M of cover for Lodestar Underwriting
Agency, where previously only offered the first USD 100M.
JANUARY
Mr Bay Moon appointed as Chief Operating Officers of the Korean P&I Club
FEBRUARY
Navigators P&I announce their ability to offer USD 1 Billion limit of liability
Lodestar Ltd announce their ability to offer USD 1 Billion limit of liability
MARCH
Lodestar Post Renewal Report: Pleasingly the hard work has once again paid off with
premium retention exceeding 97%. Weve also welcomed 36 new Assureds and 213
new vessels, pushing us over the 2,000 insured vessels mark for the first time.
APRIL
MAY
JUNE
The Norwegian Hull Club is upgraded by the Standard & Poors (S&P) to an A rating.
JULY
Hanseatic Underwriters and its corporate body ZAM, the German fixed premium
facility announce that Mr Tobias Braun will assume the role as Managing Director and
joins the Board of Directors with effect from 1st July 2015.
AUGUST
SEPTEMBER
Mitsui Sumitomo acquires Amlin for 3.5bn, market sources suggest that Amlin will
remain as the go-to London syndicate at Lloyds. We at AJG do not expect to see any
major changes at RaetsMairne.
21
FACILITY
CARRIER
ANNUAL PREMIUM
INCOME 2014 (USD)
TONNAGE/VESSELS
INSURED
BRITISH MARINE
US$ 97,500,000
10,600,000 GT
15,500,000 GT
US$ 32,323,000
21,090,000 GT
US$ 30,000,000
3,500,518 GT
US$ 28,300,000
12,200 VSL
US$ 27,500,000
2,100 VSL
2,850,000 GT
US$ 20,000,000
1,900,000 GT
US$ 16,500,000
4,200,000 GT
US$ 14,000,000
1,657,000 GT
US$ 10,500,000
10,500 VSL
US$ 10,000,000
3,000,000 GT
4,825 VSL
US$ 9,000,000
1,557 VSL
US$ 7,000,000
898,000 GT
US$ 6,200,000
2,044,000 GT
S&P: A+
RAETSMARINE BV
LODESTAR LTD
CHARTERERS P&I
OSPREY
Lloyds of London
S&P: A+
HANSEATIC P&I
Insurance Consortium
See Page 72.
S&P: Various A Rated
NAVIGATORS P&I
INGOSSTRAKH
Ingosstrakh
S&P: BBB-
HYDOR A/S
Lloyds of London
(Brit Syndicate 2987)
S&P: A+
CHARTERAMA BV
CARINA
Lloyds of London
S&P: A+
American Club
S&P: BBB-
ROSGOSSTRAKH LTD
22
MAXIMUM
LIMIT
COVER AMENDMENTS
IN 2014
LOCATION
US$ 1 Billion
US$ 1 Billion
<40,000 GT
US$ 1 Billion
No limit
US$ 1 Billion
<40,000 GT Non-Tanker
<10,000 GT Tanker
US$ 2,320 PV
No limit
LONDON, UK
US$ 13,095 PV
US$ 500,000
Million
<25,000 GT Non-Tank
<10,000 GT - Tankers
LONDON, UK
<30,000 GT Bulkers
<20,000 GT Tankers
N/A
HAMBURG,
GERMANY
US$ 1 Billion
<10,000 GT
LONDON, UK
US$ 1 Billion
<10,000 GT
US$ 1 Billion
25,000 GT
BERGEN,
NORWAY
US$ 1,000 PV
No limit
ROTTERDAM, NL
<5,000 GT
US$ 5,780 PV
No Limit
OSLO, NORWAY
<12,500 GT
Increase in vessel GT
covered
Tankers <8,500 GT
All others <25,000 GT
LONDON, UK
ROTTERDAM, NL
SEOUL, KOREA
LONDON, UK
MOSCOW, RUSSIA
LONDON, UK
MOSCOW, RUSSIA
23
02 MARKET FACTS
& FIGURES
BRITISH MARINE
www.britishmarine.com
INTRODUCTION
Established in 1876, British Marine is a specialist hull &
machinery, protection and indemnity and legal expenses
insurer for small to medium sized vessels. At the turn of
the 21st Century British Marine was de-mutualised and
more recently in 2005 the privately held fixed premium
insurer was successfully acquired by the QBE Group. With
effect from 31st March 2010, all of British Marines assets
and liabilities, including its current and past contracts of
insurance and reinsurance were transferred to QBE Insurance
(Europe) Limited. The British Marine brand name has now
become a trading name for QBE.
Today British Marine provides fixed cost P&I insurance
solutions, as well as H&M and charterers liability insurance
products, offering P&I limits up to USD 500 million (limits
up to USD 1 Billion are also available). The insurer typically
writes vessels up to 10,000 GT, with 90% of their portfolio
consisting of medium size merchant vessels and the balance
of the portfolio being made up of fishing vessels and super
yachts. On the Charterers Liability side, limits for P&I are
available up to USD 100 million with Charterers Damage
to Hull being limited up to USD 50 million. There is
however a guideline tonnage maximum level of 30,000 GT.
12%
North America
3% Africa
3%
Yatchs
34%
Northern
Europe
7%
Tankers
3% Australia
8%
Fishing
1%
Dredgers
23%
General
Cargo
5% South
America
8%
Tugs &
Barges
11%
Middle East
22%
Bulkers
13%
Southern
Europe
26
19%
Far East
28%
Others
-2.5%
-9.1%
+1.2%
120%
130,000,000
100%
120,000,000
80%
110,000,000
60%
100,000,000
40%
2014
2013
2012
2011
2010
80,000,000
2009
0%
2008
90,000,000
20%
P&I
TONNAGE DEVELOPMENT
150,000,000
10.50
10.00
9.50
100,000,000
9.00
8.50
50,000,000
2014
2013
2012
2011
2010
2009
7.50
2008
2014
2013
2012
2011
2010
2009
2008
8.00
2008
2009 2010 2011 2012 2013 2014
P&I Premium Income 93,007,720 125,000,000 133,500,000 125,000,000 106,000,000 100,000,000 97,500,000
2008
2009 2010 2011 2012 2013 2014
11,000,000
13,500,000 13,520,000 12,600,000 12,000,000 11,000,000 10,000,000
27
CARINA
www.carinapandi.com
INTRODUCTION
Carina is one of the most recent fixed premium new entrants
starting in the early part of 2013. The facility is managed by
Tindall Riley Marine (UK) Limited (who are the managers of
the Britannia P&I Club), trading as Carina Managers. This
facility offers fixed premium P&I coverage for Owners and
Charterers of smaller vessels ranging up to 5,000 gross tons,
operating in domestic or inland waters, worldwide. Policy
limits of up to USD 500 million are available for Owners,
whereas Charterers will be able to purchase limits up to USD
50 million.
CARINA SAYS
Over the past 12 months, the facility has seen its book
of business grow by 50 % in terms of tonnage. This has
been due to existing insureds adding to their existing
fleets and new insureds purchasing cover from Carina. The
products offered include owners and charterers P&I cover
of up to USD500 million and a variety of ancillary covers.
Last year we launched the Carina Yachts P&I Cover, which
is a fixed-premium product for yacht owners, managers
and charterers. Once again, all policies are backed by
underwriters at Lloyds.
7%
South America
2%
Others
4%
Northern
Europe
4% General Cargo
9%
Tankers
5%
Russia &
Ukraine
4%
Passenger
2% Fishing
4% Tug
26%
Far East
58%
Southern
Europe
28
75%
Barges
+8%
+37.9%
+50%
120%
11,000,000
10,500,000
100%
10,000,000
9,500,000
80%
9,000,000
8,500,000
60%
8,000,000
40%
7,500,000
6,500,000
2014
2013
7,000,000
20%
6,000,000
0%
P&I
GROSS TONNAGE
3,500,000
3.70
3,000,000
3.60
2,500,000
3.50
2,000,000
1,500,000
3.40
1,000,000
2014
2013
2014
3.30
2013
500,000
3.20
2011
2012
2013
7,250,000
2014
10,000,000
2011
Gross Tonnage
2012
2013
2,000,000
2014
3,000,000
29
www.eagleoceanmarine.com
INTRODUCTION
Eagle Ocean Agencies, Inc. is an affiliated company of The
Shipowners Claims Bureau, Inc., who are the managers of
the American P&I Club, and Atlantic Marine Associates, Inc.,
which is a general marine adjusting and claims handling
company. In 2010, the Directors of the American P&I Club
formed a separate fixed premium facility, namely Eagle
Ocean Marine, offering Protection and Indemnity and Freight,
Demurrage and Defence insurance solutions. The facility is
primarily focused on operators of smaller ships, below 12,500
gross tons, operating in regional waters, with policy limits being
available up to $500 million for P&I and $2 million for FD&D.
P&I coverage is available to operators on a worldwide basis;
however coverage is not available to operators based in the
U.S.A. or trading exclusively in U.S. waters (this is however
dealt with by Eagle Ocean Agencies the sister company of
SCB). At present the facility is more Far East focused, with
70% of their portfolio emanating from this region.
1% Fishing
6%
South America
7%
Containers
6%
Southern Europe
32%
Tugs & Barges
10%
Bulkers
3% Middle
East
5%
Others
15% Africa
70%
Far East
30
35%
General Cargo
10%
Tankers
8.8%
+7.6%
+18.2%
120%
8,000,000
100%
6,000,000
80%
4,000,000
60%
40%
2,000,000
20%
TONNAGE DEVELOPMENT
1,000,000
12.00
2014
2013
FD&D
2012
2010
P&I
2011
0%
800,000
11.00
600,000
10.00
400,000
2014
2013
2012
8.00
2011
2014
2013
2012
2011
2010
2010
9.00
200,000
898,000
31
HANSEATIC UNDERWRITERS
www.hanseatic_pandi.com
INTRODUCTION
Hanseatic P&I celebrate its 10th anniversary this year. The
insurance consortium was originally supported by five German
insurance companies but has developed substantially in recent
years and as of April 2015 the primary USD50m layer became
a 100% Lloyds placement. The facility writes up to a limit of
USD500m with A+ or AA security throughout.
The consortium is managed under the brand name Hanseatic
Underwriters by Zeller Associates Management Services
GmbH of Hamburg. Hanseatic P&I provide ship owners
and charterers liability as well as inland craft P&I cover. The
consortium also provides FD&D legal expenses insurance,
either as an additional or a separate cover, under the brand
name Hanseatic Defence.
The core risk appetite of Hanseatic P&I is small and medium
size general cargo and container vessels, as well as liquid
cargo and dry bulk. Additionally Hanseatic has expertise in
traditional, offshore and specialist vessels of any type. The
underwriting philosophy at Hanseatic was originally focused
on German and Northern European interests and expanded
its operation with regional offices in London and Shanghai. At
present, Hanseatic P&I core business emanates from all parts
of Europe, Far East, Middle East, Africa, Australia and South
America.
HANSEATIC SAYS
The business continues to grow on the back of sensible
and sustainable pricing and the on-going development of
our geographical presence has been highly encouraging.
We have managed a growth in written business of over
10% in 2014 and anticipate another 15% overall in 2015.
The underwriting result has also developed exceptionally
well. We have always believed that a cautious and
technically sound approach to our operations would
reward our participants, a view reflected in their continued
support. Being able to offer a fully Lloyds-backed product,
with a team which adds benefit for our clients by both
its general marine expertise as well as specific insurance
pedigree, bodes well in the actual market environment.
We are the only international P&I insurer to have been
approved by China beyond the International Group
clubs which tells its own story. This is a good year to be
celebrating the 10th anniversary of Hanseatic Underwriters
Made in Germany.
3% Offshore
4% Australia
5% South
America
14%
Far East
24%
Southern
Europe
32
1% Dredgers
45%
Northern
Europe
3% Fishing
1% Tankers
7% Tugs
& Barges
46%
General
Cargo
15%
Containers
8%
Middle East
2% Others
22%
Bulkers
+7.4%
+5.6%
+1.6%
90%
25,000,000
80%
20,000,000
70%
60%
15,000,000
50%
40%
10,000,000
30%
20%
Charterers/ FD&D
DTH
War
SOL to
Cargo
H&M
Other
Risks
2014
2013
2012
2011
2010
0
P&I
2009
0%
2008
5,000,000
10%
Ports &
Terminals
TONNAGE DEVELOPMENT
3,000,000
8.50
8.00
2,500,000
7.50
2,000,000
7.00
1,500,000
6.50
6.00
1,000,000
2014
2013
2012
2011
2010
4.50
2009
2014
2013
2012
2011
2010
2009
2008
5.00
2008
5.50
500,000
2008
2009 2010 2011 2012 2013 2014
P&I Premium Income 7,700,000 11,200,000 14,700,000 15,800,000 19,700,000 18,300,000 19,650,000
P&I Claims Incurred 7,900,000 7,200,000 12,900,000 14,700,000 13,700,000 8,700,000 8,250,000
Surplus/ Deficit
-200,000 4,000,000 1,800,000 1,100,000 6,000,000 9,600,000
11,400,000
2008
2009 2010 2011 2012 2013 2014
Charterers Premium Income 1,200,000 850,000 900,000 950,000 1,000,000 1,200,000 1,350,000
Charterers Claims Incurred 1,800,000
700,000 200,000 150,000 170,000 154,000 355,000
Surplus/ Deficit
-600,000
150,000 700,000 800,000 830,000 1,046,000
995,000
2008
2009 2010 2011 2012 2013 2014
1,400,000
1,600,000 1,900,000 2,100,000 2,400,000 2,700,000 2,850,000
33
HYDOR AS
www.hydor.no
INTRODUCTION
Established in 2010, Hydor is an underwriting agent on
behalf of the Brit Syndicate 2987 (Lloyds of London) offering
fixed premium Owners Protection & Indemnity, Charterers
P&I, FD&D and other marine related insurance products.
Hydor is licensed and regulated by the Financial Supervisory
Authority (FSA) of Norway.
Through Lloyds of London the Brit Syndicate 2987 holds
security ratings from Standard & Poors A+ (Strong). The
fixed premium facility looks at vessels up to 25,000 GT,
providing limits up to USD 1 billion for P&I and Charterers
Liabilities. Whilst Hydor is an underwriting agent for the
Brit Syndicate, the claims service is provided by C Solutions
Limited, which is a legal and claims consultancy staffed by
lawyers from the major UK shipping law firms, former P&I
Club Senior Managers, Master Mariners and Engineers. C
Solutions have been authorised by Hydor to handle all claims
exclusively.
1%
Middle East
HYDOR SAYS
Hydor AS has the past year further positioned themselves
as a professional fixed priced Owners and Charterers
P&I facility, providing customized solutions for clients
internationally. Hydor AS continues to shape their
competitive edge, thus working with the client, rather than
for the client to sustain in a highly competitive market.
We have seen a shift in focus towards fixed P&I and we
attract new segments which traditionally have been placed
100% in the IG system. Our aim is to be complimentary
to IG and attract those who wants an alternative with 1st
class service and security outside the IG.
8%
Tugs & Barges
10% Russia
1% North
America
17%
Fishing
5%
Offshore
3% Africa
3%
Southern
Europe
8%
Tankers
8%
Far East
19%
Containers
9%
South America
65%
Northern
Europe
34
27%
General
Cargo
16%
Bulkers
+22.1%
150%
15,000,000
100%
10,000,000
50%
5,000,000
0%
2012
2011
2014
+27.5%
2013
+55%
P&I
TONNAGE DEVELOPMENT
2,000,000
10.00
8.00
6.00
1,000,000
4.00
2014
2013
2012
0.00
2011
2014
2013
2012
0%
2011
2.00
35
INGOSSTRAKH SAYS
Ingosstrakh continues to apply a particularly thorough
approach to risk assessment, conservative selection
of clients, regular monitoring, purge of portfolio and
implementing preventive measures, which enables
Ingosstrakh to maintain the leading position in the
Russian marine market.
INTRODUCTION
Ingosstrakh Insurance Co. is a private federal level Insurance
Company, which was founded in 1947, based in Moscow,
Russia. The facility offers P&I, FD&D, H&M and other marine
related insurance solutions.
The insurer has an international portfolio, however it holds
a leading share of the Russian P&I Market giving particular
preference to ship owners from Russia, CIS and East
European Countries. The facility offers limits up to USD 1
Billion for P&I and US$ 1 Million for FD&D.
Ingosstrakh covers in excess of 1,000 units, handling a
large range of vessels from smaller inland and coastal craft,
to larger ocean going vessels in excess of 20,000 GT. The
company is rated BBB- by Standard & Poors and a National
Scale rating of ruAA++.
2% Northern Europe
2% Bulkers
5% South America
3% Dregers
3%
Offshore
1% Middle East
7%
Southern
Europe
53%
Russia
25%
General
Cargo
11%
Tankers
13%
Others
32%
Far East
17%
Tugs &
Barges
27%
Fishing
36
16%
24.3%
9.88%
120%
30,000,000
100%
25,000,000
80%
60%
Charterer/DTH
FD&D
2014
2013
2012
2011
2010
15,000,000
0%
2009
20%
2008
20,000,000
40%
P&I
TONNAGE DEVELOPMENT
10,000,000
5.00
8,000,000
4.50
6,000,000
4.00
4,000,000
2014
2013
2012
2011
2010
3.00
2009
2014
2013
2012
2011
2010
2009
2008
2008
3.50
2,000,000
2008
2009 2010 2011 2012 2013 2014
2008
2009 2010 2011 2012 2013 2014
7,895,016
5,879,400 6,024,524 4,730,800 5,001,155 5,001,155 4,200,000
37
LODESTAR LTD
www.lodestar-marine.com
LODESTAR SAYS
3 years in to our adventure we are delighted with our
progress in a very tricky market. We continue to grow at a
steady pace focusing on quality business aided by sensible
pricing and a robust loss prevention survey program. We
maintain that price is not always the defining factor when
choosing Lodestar, demonstrated by a +95% retention
record of renewing business. Whilst we continue to provide
a quality service with A rated security (RSA) we cant
afford to stagnate and have been busy developing our
offering over the last 12 months. Headline improvements
include the ability to insure dry cargo/bulker vessels up
to 40,000GT and to offer limits of liability up to USD 1
Billion. We listen to our clients and act on their requests!
We are very excited about the next 12 months having
reached a point of maturity and have plenty of more
improvements in the pipeline which we hope will benefit
current and new clients wishing to insure with Lodestar.
INTRODUCTION
Lodestar Marine Limited (Lodestar) was established in 2012,
providing fixed premium P&I insurance solutions. Lodestar is
a partnership, backed by Tawa Plc, part of Groupe Artmis,
a family owned investment company with consolidated
assets in excess of Euro 27 Billion. Lodestar comprises of
a team of experienced underwriters and claims executives
plus in-house surveyors, supported by further administration
staff based in Gloucester, under contract with Pro Insurance
Solutions Limited. The facility will write Fixed Premium P&I
risks, with limits up to USD 500 Million in co-operation with
RSA and other A rated insurers who will provide security.
Typical vessels insured by Lodestar will not exceed 10,000
gross tons.
A global network of over 250 Correspondents has been
established. In the event of a claim, security can be
provided by either a letter of undertaking or bank guarantee.
Furthermore, Lodestar is in the process of finalising
Flag State approval for the issuance of Blue Cards with
acceptance already received from a number of Authorities
including United Kingdom, Netherlands, Hong Kong and
Australia etc. Lodestar is authorised and regulated by the
FSA as an appointed representative of Pro Insurance
Solutions Limited.
1% North America
1% Australia
4% Yachts
6% Africa
2% Dredgers
9% Fishing
14%
Northern
Europe
29%
Southern
Europe
4%
Others
43%
Dry Cargo
19%
Tugs &
Barges
19%
South
America
7%
Middle East
38
23%
Far East
12%
Offshore
7%
Tankers
5.51%
+20%
+27%
100%
40,000,000
80%
30,000,000
60%
20,000,000
40%
Charterers/DTH
Other Risks
FD&D
2014
2013
2012
0%
2011
10,000,000
20%
P&I
TONNAGE DEVELOPMENT
4,000,000
9.50
3,000,000
9.00
2,000,000
8.50
2014
2013
8.00
2012
2014
2013
2012
1,000,000
2008
2009 2010 2011 2012 2013 2014
-
2008
2009 2010 2011 2012 2013 2014
-
39
NAVIGATORS P&I
www.navpandi.com
INTRODUCTION
Established in 2004, the Navigators Insurance Group set
up a fixed premium P&I facility protecting ship owners,
managers and charterers against liabilities arising out of
operating their vessels. Today Navigators P&I, based in
London, offers fixed-cost Protection & Indemnity cover to
vessels in coastal, short-sea and limited Ocean trades. The
facility offers limits up to USD 1 billion and looks to insure
vessels up to 10,000 gross tons. Navigators underwriting
profile looks at all types of vessels, excluding passenger
vessels and those with U.S. Flag, cover is also available
on a worldwide trading basis, excluding U.S. waters. In
addition to Owners P&I, Navigators can also offer contractual
liabilities as an extension of the main P&I coverage.
Charterers Liability is also available to vessels below 10,000
GT. Furthermore, in addition also offers coverage for bunker
convention and MLC 2006 risks. Navigators have office
locations in US, London, Antwerp, Stockholm, Copenhagen
and Lloyds representative offices in Shanghai and Rio. More
recently Navigators have opened office locations in Rotterdam
and Milan and also looking to shortly expand in Paris and
Dubai. Furthermore, as part of the companys expansion
strategy Navigators is in the process of establishing a
separate European Insurance Company in London enabling
the acceptance of business from any EU country.
NAVIGATOR SAYS
Navigators P&I division celebrated our 10th anniversary
in November, confirming us as one of the more established
Fixed Premium providers in the Market. We remain one of
the few non-MGA providers, giving us long-term stability
that few in the marketplace enjoy; we are fully in control of
our own destiny. With the recent hire of Jason Riley from
the UK Club, to head up the operation, our P&I product is
undergoing a series of enhancements. There are a number of
projects in the pipeline that will take us forward in line with
the changing needs of our clients. Now being able to offer
cover up to $1bn, we are becoming a very credible threat to
the P&I Clubs, although for the time being we will stick to
our core vessel tonnage category of around 10,000 GT. The
soft market conditions make it difficult in a very crowded
Market, especially as most of the P&I Clubs themselves
have woken up the threat on their doorsteps, and Owners
still look to price being a significant factor in their insurance
decision making. More owners realise that in their particular
trade they may not need to pay for such high limits, so our
bespoke cover offers a sensible option. Whilst Navigators
has not grown in market share over the last few years, we are
confident that if we stick to our principals, and do not get
into growth for growths sake, we will prevail as one of the
stronger Fixed Premium providers.
2% Container
10% Europe
10%
Fishing
16% Other
3%
Others
31%
General
Cargo
6%
Tankers
8%
South America
4%
Bulker
15%
North America
51%
Far East
40
44%
Tugs & Barges
6.6%
0.5%
1.8%
120%
29,000,000
28,000,000
100%
27,000,000
26,000,000
80%
25,000,000
60%
24,000,000
23,000,000
40%
2014
2013
2012
2011
2010
20,000,000
2009
21,000,000
0%
2008
22,000,000
20%
P&I
TONNAGE DEVELOPMENT
3,000,000
2,500,000
11.50
2,000,000
11.00
1,500,000
10.50
1,000,000
2014
2013
2012
2011
2010
9.50
2009
2014
2013
2012
2011
2010
2009
2008
2008
10.00
500,000
2008
2009 2010 2011 2012 2013 2014
2008
2009 2010 2011 2012 2013 2014
2,450,000
2,300,000 2,100,000 2,200,000 2,100,000 2,000,000 1,900,000
41
OSPREY UNDERWRITING
AGENCY LTD
www.special-risks.co.uk
INTRODUCTION
Established in 1991, Osprey Underwriting Agency is a
specialist P&I fixed premium insurance provider and is the
oldest P&I fixed premium insurer in London. The Agency
provides insurance services to ship owners on a variety of
vessel types and operations, with a focused portfolio of tugs,
barges and fishing vessels. The facility caters for vessels of
up to 25,000 GT, engaged in the carriage of dry cargoes and
up to 10,000 GT for all other vessel types. Osprey avoids
writing tankers carrying persistent cargoes and passenger
vessels. For business emanating from the USA the policy
limit is USD 1 Million.
Coverage can be provided on a worldwide basis, which is
backed up by an extensive global network of correspondents
and Lloyds agents. Osprey is actively looking to expand
its non-US book of business with a focus on Asia, whilst
maintaining its leading position as providers of U.S. Primary
P&I Insurance.
OSPREY SAYS
The past year has continued to be a competitive
environment for the development of new business, with
competing markets more determined on market share at
any price. That said we have been successful in positive
expansion, albeit with high regard for risk and exposure.
Our proportion of Non US business has increased as we
have sought to continue the development of this part of
2%
General Cargo
2% Other
24%
Others
40%
Tugs &
Barges
32%
Asia/
Middle East
18%
Offshore
6%
South America
6%
Europe
42
54%
North
America
16%
Fishing
21.8%
26.5%
+6.3%
60%
40,000,000
40%
35,000,000
20%
30,000,000
25,000,000
0%
H&M
Other Risks
2014
45,000,000
2013
80%
2012
50,000,000
2010
100%
2009
2008
2011
P&I
4,000
18,000
17,000
3,000
16,000
2,000
15,000
1,000
2014
2013
2012
2011
2010
2009
13,000
2008
2014
2013
2012
2011
2010
2009
2008
14,000
2008
2009 2010 2011 2012 2013 2014
41,100,000
38,400,000
30,000,000 27,500,000
2008
2009 2010 2011 2012 2013 2014
43
RAETSMARINE BV
www.raetsmarine.com
RAETSMARINE SAYS
Fixed premium P&I has developed into our mature market
and has become a real alternative to the IG Clubs for
small to medium size tonnage. The best proof of this is the
INTRODUCTION
RaetsMarine BV was founded in 1993, initially writing
charterers liability insurance. RaetsMarine BV were
independent underwriting agents of Amlin Corporate
Insurance BV before they were absorbed by Amlin Europe
N.V. in 2013, RaetsMarine continues to be responsible for
P&I, FD&D, Charterers Liability insurances. The Owners
P&I facility targets small to medium sized vessels, up to
40,000 GT, as well as supply vessels, fishing boats, tugs
and barges and other specialist units. For Charterers Liability,
RaetsMarine has no restrictions on vessel type, size, age or
territory. The facility currently serves over 1,000 charterers,
including traders, operators, NVOCCs and others chartering
vessels, offering limits up to US$ 500 Million (for both
owned and chartered business). RaetsMarine BV owned is
a cover holder at Lloyds, where RaetsMarine writes on the
Amlin Syndicate 2001 which is A+ rated by S&P.
2% Africa
2% Offshore
1% North America
46%
Europe
1% Dredgers
3% Fishing
1% Containers
2% Yatchs
29%
Others
6% Tankers
5%
Middle East
17%
Tugs &
Barges
34%
Far East
19%
General
Cargo
20%
Bulkers
+0.9%
2.3%
44
+0.02%
TONNAGE DEVELOPMENT
57,000,000
20,000,000
5.80
25,000
2014
2013
2012
2011
2014
2013
2012
22,000,000
5,000,000
2011
27,000,000
2010
0%
32,000,000
2009
10%
10,000,000
37,000,000
War
FD&D
20%
42,000,000
SOL to Cargo
30%
40%
15,000,000
2010
47,000,000
2009
50%
2008
52,000,000
Charterers/DTH
60%
2008
70%
P&I
20,000
4.80
15,000
3.80
27,000,000
2014
1,400.00
2014
28,000,000
2013
2013
CL PREMIUM INCOME
2012
2011
5,000
2010
2014
2013
2012
2011
2010
2009
1.80
2008
2.80
2009
10,000
1,300.00
26,000,000
1,200.00
25,000,000
2012
2011
2010
1,000.00
2009
2014
2013
2012
2011
2010
23,000,000
1,100.00
2009
24,000,000
2008
2009 2010 2011 2012 2013 2014
2008
2009 2010 2011 2012 2013 2014
2008
2009 2010 2011 2012 2013 2014
5,298,502 12,178,942 11,390,104 16,262,048 15,806,600 15,366,000 15,500,000
2008
2009 2010 2011 2012 2013 2014
# vessels
45
ROSGOSSTRAKH LTD
www.rgs.ru
INTRODUCTION
Successor of Soviet State Insurance Company Gosstrakh
established in 1921. Rosgosstrakh today is a private
company and a major insurance provider in the Russian
market. 43 million individual and 240 000 corporate
clients are served by RGS with 4 000 offices and 100
000 personnel. RGS has exceptionally strong assets in the
region of US$ 2.8 billion with charter capital of US$ 160
million. RGS P&I represents fixed premium facility targeting
small to medium sized vessels, up to 25 000 GT with
worldwide trading. The US$ 500 million capacity is placed
with reinsurers at Lloyds. RGS has a growing P&I portfolio
of predominantly Russian and FSU Clients. The current
P&I book of RGS represents over 1,800 units generating
US$ 6.2 million P&I premium. RGS also provides cover for
Charterer`s Liability, FD&D, marine hull, cargo and other
marine related insurance solutions.
1% Far East
2% Dredgers
4% Northern Europe
1% Bulkers
1% Offshore
2% Middle East
7% Southern
Europe
33%
Tankers
6%
Fishing
22%
Others
86%
Russia
46
23%
General Cargo
10.1%
+29.1%
+43.5%
120%
8,000,000
100%
6,000,000
80%
60%
4,000,000
40%
2,000,000
2014
2013
2012
2011
2010
0
P&I
2009
0%
2008
20%
Charterers/DTH
TONNAGE DEVELOPMENT
2,500,000
4.500
2,000,000
4.000
1,500,000
1,000,000
3.500
2014
2013
2012
2011
2010
2009
3.000
2008
2014
2013
2012
2011
2010
2009
2008
500,000
2008
2009 2010 2011 2012 2013 2014
2008
2009 2010 2011 2012 2013 2014
235,258 562,170 1,038,500 1,055,019 1,002,000 1,424,486 2,044,800
47
KOREAN SHIPOWNERS
MUTUAL P&I
www.kpiclub.or.kr
INTRODUCTION
The Korea Shipowners Mutual P&I Association was
established in 2000, offering fixed premium P&I solutions,
as well as other marine related insurances. KPI operates as a
mutual organisation (not for profit), covering in excess of 996
vessels, commanding a collective market share of 21 Million
GT, with a premium income of approximately US$ 31.8
million (based on 2014 results). The facility offers P&I limits
of liability up to US$ 1 Billion, backed by reinsurers from
Lloyds of London, Korean Re and Kuwait Re.
KPI targets a large tonnage range of merchant vessels
ranging up to 100,000 GT for dry cargo vessels and up
to 10,000 GT for tanker tonnages. The majority of their
portfolio consists of Korean Members, which makes up 93%
of the Club.
0.2%
Middle East
99.8%
Far East
9% Tugs &
Barges
22%
Bulkers
8%
Tankers
11%
Containers
16%
Fishing
13%
General
Cargo
21%
Others
48
11.9%
+2.2%
+15.9%
120%
40,000,000
100%
30,000,000
80%
20,000,000
60%
40%
FD&D
Charterers/DTH
2014
2013
2012
2011
2010
2009
0%
2008
10,000,000
20%
P&I
TONNAGE DEVELOPMENT
25,000,000
3.00
20,000,000
2.00
15,000,000
10,000,000
1.00
2014
2013
2012
2011
2010
2009
0.00
2008
2014
2013
2012
2011
2010
2009
2008
5,000,000
2008
2009 2010 2011 2012 2013 2014
2008
2009 2010 2011 2012 2013 2014
4,996,000 7,338,000 8,685,000 10,007,000 11,043,000 18,192,000 21,090,000
49
CHARTERAMA BV
www.charterama.com
INTRODUCTION
Charterama BV was established in March 2009, based in
Rotterdam, Netherlands, as an underwriting agency offering
a full range of Charterers P&I coverage. The facility is able
to respond worldwide, with their extensive global network
of correspondents. Charterama BV is backed by its primary
carrier Royal Sun Alliance, who holds an A Standard and
Poors rating. The facility specialises in Charterers Liability,
Damage to Hull and FD&D coverage, offering limits up to
US$ 350 Million and US$ 2 Million for FD&D, additional
covers, such as War and Bunkers insurance are also
available. The facility has grown tremendously from a
premium income of US$ 3 Million in 2009, to US$ 10.5
Million in 2014. More recently in April 2014, Charterama
BV opened a new office in Hong Kong, to expand their
network and support services in Asia where 12% of the
agencies portfolio current emanates from.
1% Australia
2% Middle East
47%
Bulkers
12%
Far East
18%
Tankers
81%
Europe
50
2% Others
2% Containers
5% North America
30%
General
Cargo
+16%
+5%
+5.2%
NO OF VESSELS INSURED
2013 PY: 10,000
2014 PY: 10,500
80%
12,000,000
10,000,000
60%
8,000,000
6,000,000
40%
4,000,000
20%
Charterers/DTH
FD&D
War
2014
2013
2012
2011
0%
2010
2009
2,000,000
Other Risks
TONNAGE DEVELOPMENT
12,000
1,300
10,000
1,200
8,000
1,100
6,000
4,000
1,00
2014
2013
2012
2011
2010
900
2009
2014
2013
2012
2011
2010
2009
2,000
51
www.exclusivelyforcharterers.com
INTRODUCTION
The Charterers P&I club was founded in 1986, as a mutual
insurance company, specialising in charterers liability
insurance and defence coverage. In 1999 the Club was
demutualised and an underwriting agency was formed,
backed by Lloyds of London security, offering fixed premium
charterers liability and other marine related products. In
2009 the agency switched its security to Great Lakes
Munich Re Group, which holds an S&P AA- rating. Michael
Else & Co., are the managers of the Club and provide
all underwriting and claims support, though its global
correspondent network. The facility provides limits of liability
up to USD 500 million for charterers liability and up to USD
2 million for FD&D. The agency employs experience maritime
lawyers and commercial claims handlers, with offices in
London, Shanghai and a claims handling office in Dubai. In
the late part of 2013, the managers of the Charterers P&I
Club set up a strategic hub in Dubai as Sextant Marine to
service the overseas markets more efficiently.
2% North America
2% South America
5%
Tankers
4% Africa
9%
Southern
Europe
13%
Liner
42%
India/Asia
12%
Australia/
New Zealand
16%
General
Cargo
3%
Middle East
26%
Northern
Europe
52
2% Others
64%
Bulkers
0.5%
100%
29,000,000
80%
28,000,000
60%
27,000,000
40%
26,000,000
20%
25,000,000
0%
24,000,000
P&I
2009
2008
2014
2013
NO OF VESSELS INSURED
2013 PY: 12,500
2014 PY: 12,200
2012
2011
+4.1%
2010
+3.6%
Charterers/DTH
VESSELS ON RISK
13,000
2,600
12,500
2,500
12,000
2,400
11,500
2,300
11,000
2014
2013
2012
2011
2,100
2010
2014
2013
2012
2011
2010
2009
10,000
2009
2,200
10,500
2008
2009 2010 2011 2012 2013 2014
25,500,000
28,000,000 27,000,000 25,500,000 27,200,000 28,200,000 28,300,000
2008
2009 2010 2011 2012 2013 2014
- 11,000 11,500 11,000 12,000 12,500 12,200
53
www.norclub-no
INTRODUCTION
In 2008 the Club commenced underwriting Charterers
Liability risks, today their portfolio commands a premium
income of around US$ 9 Million, with approximately 150
charterers & traders clients. The Clubs charterers facility
offers limits up to US$ 500 Million for traditional Charterers
P&I and Damage to Hull. FD&D for charterers is also
available in addition to the Clubs extensive marine insurance
product range. The Norwegian Hull Club has a large share
of the Norwegian ocean hull market and ranks amongst the
largest pure marine underwriters in the world.
17%
South America
13%
Others
31%
Europe
3% North
America
1%
Middle
East
20%
General
Cargo
66%
Bulkers
48%
Asia-Pacific
54
10%
13.5%
+4.1%
NO OF VESSELS INSURED
2013 PY: 1,496
2014 PY: 1,557
80%
14,000,000
12,000,000
60%
10,000,000
8,000,000
40%
6,000,000
H&M
Other Risks
War
2014
2013
2012
2011
2010
0%
2009
2,000,000
2008
4,000,000
20%
Charterers/DTH
VESSELS ON RISK
2,500
7,700
7,200
2,000
6,700
1,500
6,200
1,000
5,700
500
2014
2013
2012
2011
2010
2009
4,700
2008
2014
2013
2012
2011
2010
2009
2008
5,200
2008
2009 2010 2011 2012 2013 2014
4,800,000 8,700,000 9,500,000 11,000,000 11,500,000 10,000,000 9,000,000
2008
2009 2010 2011 2012 2013 2014
890 1,340 1,630 1,880 1,960 1,496 1,557
55
INTRODUCTION
Examining and comparing industry statistics on the
various International Group Clubs is relatively easy
due to the transparent and consistent nature in which
the Clubs report on account. By contrast, analysing the
various commercial markets is a more difficult task due
to individual markets willingness to release accurate
premium, GT and claims figures. Furthermore, markets
may also supply information with inconsistent data, as
any declared information may also include other marine
lines, such as H&M, war and charterers liability etc.
03 INDUSTRY
STATISTICS
USD 000
INSURER
2008 2009 2010 2011 2012 2013 2014 Variance on 5 Year Cumulative
2013 PY
Result
British Marine
$310,000
-2.50%
-36.92%
RaetsMarine
$28,600 $35,500 $36,400 $51,700 $50,000 $52,000 $52,500 0.96%
$300,000
Lodestar
-
-
-
- $16,500 $25,000 $30,000 20.00%
$290,000
Osprey Underwriting Agency
$31,000 $36,000 $40,500 $41,100 $38,400 $30,000 $27,500 -8.33%
-47.27%
$280,000
Navigators
-20.00%
$270,000
Hanseatic Underwriters $7,700 $11,200 $14,700 $15,800 $19,700 $18,300 $19,500 6.56%
24.62%
Ingosstrakh Insurance Co
$25,400 $27,250 $23,000 $19,228 $23,523 $21,800 $16,500 -24.31%
$260,000
-39.39%
Hydor AS
$250,000
Carina
$240,000
Eagle Ocean Marine
$230,000
Rosgosstrakh Ltd
TOTAL
$220,000
AVERAGE
$210,000
2008
30.67%
- - - - -
$7,250
$10,000
37.93%
-
92.86%
47.00%
1.56%
2010
2011
2012
8.99%
8.99%
2014
2013
$120,000
2013
2014
$100,000
$80,000
$60,000
$40,000
$20,000
$0
58
Lodestar
Osprey
Underwriting
Agency
Navigators
Hanseatic
Ingosstrakh
Underwriters Insurance Co
Hydor AS
Carina
Eagle Ocean
Marine
Rosgosstrakh
Ltd
INDUSTRY STATISTICS
$310,000
$300,000
$290,000
$280,000
$270,000
$260,000
$250,000
$240,000
$230,000
$220,000
$210,000
2008
2009
2010
2011
2012
2014
2013
$120,000
2%
Rosgosstrakh Ltd
3% Carina
$100,000
$40,000
$20,000
$0
2014
5% Hydor AS
32%
British
Marine
$80,000
$60,000
2013
5% Ingosstrakh
Insurance Co
6%
Hanseatic
Underwriters
7%
Navigators
Lodestar
9%
Osprey
Underwriting
Agency
Osprey
Underwriting
Agency
10%
Lodestar
Navigators
Hanseatic
Ingosstrakh
Underwriters Insurance Co
Hydor AS
Carina
Eagle Ocean
Marine
Rosgosstrakh
Ltd
17%
RaetsMarine
59
GT 000
INSURER
2008 2009 2010 2011 2012 2013 2014 Variance on 5 Year Cumulative
2013 PY
Result
TOTALS
25,000
2008
2009
AVERAGE
Tonnage (000s)
RaetsMarine
47,000
British Marine
45,000
18,000
2013
2014
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
60
RaetsMarine
British Marine
Ingosstrakh
Insurance Co
Carina
Hanseatic
Underwriters
Lodestar
Rosgosstrakh
Ltd
Navigators
Hydor AS
Eagle Ocean
Marine
INDUSTRY STATISTICS
47,000
$7.800
45,000
$7.600
43,000
$7.400
41,000
45,000
37,000
35,000
33,000
$7.000
40,000
$6.800
$6.600
35,000
Tonnage (000s)
$7.200
39,000
$6.400
31,000
29,000
$6.200
27,000
$6.000
25,000
50,000
2008
2009
2010
2011
2012
2013
$5.800
2014
30,000
25,000
Total Owned GT
2%
Eagle Ocean Marine
4% Hydor AS
18,000
16,000
2013
2014
4% Navigators
14,000
4%
Rosgosstrakh Ltd
12,000
10,000
34%
RaetsMarine
8%
Lodestar
8,000
6,000
6%
Hanseatic
Underwriters
4,000
2,000
0
RaetsMarine
7%
Carina
British Marine
Ingosstrakh
Insurance Co
Carina
Hanseatic
Underwriters
Lodestar
Rosgosstrakh
Ltd
Navigators
Hydor AS
Eagle Ocean
Marine
9% Ingosstrakh
Insurance Co
23%
British Marine
61
USD PER GT
INSURER
2008 2009 2010 2011 2012 2013 2014 Variance on 5 Year Cumulative
2013 PY
Result
Navigators
$310,000
British Marine
$290,000
Lodestar
-8.57%
-7.35%
$280,000
Hydor AS
-28.29%
Hanseatic
$260,000
Ingosstrakh
2.81%
$250,000
RaetsMarine
5.65%
Carina
$240,000
- - - - -
$3.625
$3.333
-8.05%
Rosgosstrakh Ltd
$230,000
TOTALS
-4.37%
$220,000
VARIANCE -4.21% 5.33% -7.54% -2.07% -3.27% -2.87% -2.87% -14.92%
$210,000
2008
2014
2009
2010
2011
2012
2013
$12.000
2013
2014
$10.000
$8.000
2014
Average
$6.000
$4.000
$2.000
$0.000
62
Navigators
British Marine
Lodestar
Ingosstrakh
RaetsMarine
Carina
Rosgosstrakh Ltd
INDUSTRY STATISTICS
$310,000
$290,000
$280,000
$270,000
$260,000
$250,000
$240,000
$230,000
$220,000
$210,000
2008
2009
2010
2011
2012
2014
2013
6%
$12.000
2013
4%
2014
$10.000
2%
Percentage
$8.000
0%
2014
Average
-2%
$6.000
-4%
$4.000
-6%
$2.000
-8%
$0.000
-10%
Navigators
2009 British Marine
Lodestar
2010
Hydor AS Eagle
Ocean Marine Hanseatic
2011
2012 Ingosstrakh
RaetsMarine
2013
Carina
Rosgosstrakh
Ltd
2014
63
USD 000
Charterama BV
$78,000
Charterers P&I Club
$76,000
RaetsMarine BV
Norwegian Hull Club
$74,000
52.38%
48,000
4.59%
46,000
0.00%
44,000
-5.56%
42,000
33.33%
Hanseatic Underwriters $1,200 $850 $900 $950 $1,000 $1,200 $1,350 12.50%
$11,200
$72,000
TOTAL
$31,000 $65,050 $68,400 $69,150 $74,700 $75,900 $75,150 -0.99%
$11,000
40,000
9.87%
$70,000
VARIANCE
109.84% 5.15% 1.10% 8.03% 1.61% -0.99% -0.99%
$10,800
$10,600
$68,000
$66,000
$64,000
2009
2010
2011
2012
2013
2014
38,000
9.87%
36,000
$10,400
34,000
$10,200
32,000
$10,000
2009
2010
2011
2012
2013
2014
Tonnage (000s)
INSURER
2008 2009 2010 2011 2012 2013 2014 Variance on 5 Year Cumulative
2013 PY
Result
30,000
$30,000
2013
2014
$25,000
$20,000
$15,000
$10,000
$5,000
$0
64
Charterama BV
RaetsMarine BV
Hanseatic Underwriters
INDUSTRY STATISTICS
$78,000
$76,000
$74,000
48,000
$11,800
46,000
$11,600
44,000
$11,400
$72,000
$70,000
42,000
$11,200
40,000
$11,000
38,000
$10,800
36,000
$10,600
$68,000
$66,000
$64,000
$12,000
2009
2010
2011
2012
2013
$10,400
34,000
$10,200
32,000
$10,000
2014
2009
2010
2011
2012
2013
2014
Tonnage (000s)
30,000
$30,000
2% Hanseatic
Underwriters
2013
12% Norwegian
Hull Club
$25,000
2014
14%
Charterama BV
$20,000
$15,000
$10,000
$5,000
$0
35%
RaetsMarine BV
Charterama BV
RaetsMarine BV
Norwegian Hull
Club
38%
Hanseatic Underwriters
Charterers
P&I Club
65
INSURER
2008 2009 2010 2011 2012 2013 2014 Variance on 5 Year Cumulative
2013 PY
Result
Charterama BV 2,500 4,000 5,800 8,300
10,000
10,500 5.00% 61.90%
Charterers P&I Club 11,000 11,500 11,000 12,000 12,500 12,500 0.00%
8.00%
-6.53%
Hanseatic Underwriters - - - - - - -
TOTAL
15.33%
VARIANCE
3596.74%
20.06% 7.50% 8.43% -2.27% 1.25% 1.25% 15.33%
3% Norweigan
Hull Club
23%
Charterama BV
46%
RaetsMarine BV
27%
Charterers
P&I Club
66
INDUSTRY STATISTICS
$50,000
$48,000
$46,000
$44,000
$42,000
$40,000
$38,000
$36,000
$34,000
$32,000
$30,000
2009
2010
2011
2012
2013
2014
$25,000
2013
2014
$20,000
$15,000
$10,000
$5,000
$0
Charterama BV
RaetsMarine BV
Hanseatic Underwriters
67
INSURER
2008 2009 2010 2011 2012 2013 2014 Variance on 5 Year Cumulative
2013 PY
Result
Charterama BV
RaetsMarine BV
6.13%
-0.83%
-3.70%
Hanseatic Underwriters - - - - - - -
TOTAL
-2.89%
VARIANCE
114.98% -8.68% -2.87% -0.50% 15.54%
-13.03%
-14.98%
-2.89%
2014
$7,000
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
$0
Charterama BV
RaetsMarine BV
Hanseatic Underwriters
$12,000
$11,800
$11,600
$11,400
$11,200
$11,000
$10,800
$10,600
$10,400
$10,200
$10,000
68
2009
2010
2011
2012
2013
2014
INDUSTRY STATISTICS
USD 000
INSURER
2008 2009 2010 2011 2012 2013 2014 Variance on 5 Year Cumulative
2013 PY
Result
China P&I Club
TOTAL
19.56%
2014
$32,000
$31,500
$31,000
$30,500
$30,000
$25,000
$20,000
$15,000
$10,000
2008
2009
2010
2011
2012
2013
2014
69
USD 000
INSURER
2008 2009 2010 2011 2012 2013 2014 Variance on 5 Year Cumulative
2013 PY
Result
China P&I Club
Korean P&I Club
TOTAL
58.82%
$22,000
2013
$21,000
$20,000
$19,000
$18,000
$17,000
$16,000
$24,000
$19,000
$14,000
$9,000
$4,000
70
2008
2009
2010
2011
2012
2013
2014
2014
INDUSTRY STATISTICS
USD PER GT
INSURER
2008 2009 2010 2011 2012 2013 2014 Variance on 5 Year Cumulative
2013 PY
Result
China P&I Club
TOTAL
$1,750
2013
2014
$1,700
$1,650
$1,600
$1,550
$1,500
$1,450
$1,400
$3,500
$3,000
$2,500
$2,000
$1,500
$1,000
2008
2009
2010
2011
2012
2013
2014
71
72
P&I FACILITY
CURRENT RATING
P&I FACILITY
CURRENT RATING
BRITISH MARINE
A+
INGOSSTRAKH
BBB-
CARINA
A+
UNRATED BY S&P
CHARTERAMA BV
LODESTAR LTD
AA-
NAVIGATORS P&I
BBB-
HANSEATIC P&I
OSPREY
A+
HELLENIC P&I
UNRATED BY S&P
RAETSMARINE BV
A-
HYDOR AS
A+
ROSGOSSTRAKH LTD
BB-
04 MAJOR LIMITING
CONVENTIONS
AND STATUTES
AFFECTING P&I RISKS
DEVELOPMENTS IN THE LAST 12 MONTHS
At the same time, the end of 2014 saw the 1971 IOPC
Fund being wound up. This proved to be a far from
formal matter, being agreed only by majority vote (2914). The decision had been opposed by the P&I Clubs,
not least on the grounds that there were still pollution
cases outstanding involving them.
76
When it came into force, the MLC did not, extend the
financial security requirements to encompass unpaid
wages in the event of shipowner insolvency. However
in June 2014 the Special Tripartite Committee of the
ILO approved a number of amendments to the MLC
which will effectively extend liability under the MLC to
encompass loss of up to 4 months wages in the event
of shipowner insolvency, and to require certification and
securitisation thereof.
This obligation is not part of current P&I cover unlike
most of the original elements of the MLC which are
presently covered. Indeed, the risk is essentially a
financial guarantee risk and relates to the owners
solvency rather than any characteristic of their fleet.
Nevertheless the Clubs boards have individually
considered the implications of this and have agreed to
find a P&I solution to the new requirements: at least up to
the individual club retention.
FORMULA
500 GT or less
501-3,000 GT
3,001-30,000 GT
30,001-70,000 GT
70,001 GT or more
EXAMPLE
25,000 GT
SDR 8,909,000
75,000 GT
SDR 21,409,000
1.2 PROPERTY
VESSEL SIZE
FORMULA
500 GT or less
501-30,000 GT
30,001-70,000 GT
70,001 GT or more
EXAMPLE
25,000 GT
SDR 4,258,500
75,000 GT
SDR 10,508,500
77
1A. 1996 PROTOCOL TO THE 1976 LLMC (IN FORCE 13 MAY 2004)
This amends the limits of compensation payable and has been adopted by 52 states encompassing 53.58% of world
tonnage at 14 August 2015. Until 8 June 2015 (see below) these limits were as follows:
1A.1 PERSONAL INJURY / LOSS OF LIFE
VESSEL SIZE
FORMULA
2,000 GT or less
2,001-30,000 GT
30,001-70,000 GT
70,001 GT or more
EXAMPLE
25,000 GT
SDR 20,400,000
75,000 GT
SDR 50,400,000
1A.2 PROPERTY
VESSEL SIZE
FORMULA
2,000 GT or less
2,001-30,000 GT
30,001-70,000 GT
70,001 GT or more
EXAMPLE
78
25,000 GT
SDR 10,200,000
75,000 GT
SDR 25,200,000
1B. 2012 AMENDMENTS TO THE 1996 PROTOCOL (IN FORCE 8 JUNE 2015)
This further amended the limits of compensation payable. It was dealt with via the tacit acceptance system
whereby it was deemed acceptable to all contracting states after 18 months following notification, and entered
into force after a further 18 months: it thus came into force on 8 June 2015. The increased limits are 51% higher and
are now as follows:
1B.1 PERSONAL INJURY / LOSS OF LIFE
VESSEL SIZE
FORMULA
2,000 GT or less
2,001-30,000 GT
30,001-70,000 GT
70,001 GT or more
EXAMPLE
25,000 GT
SDR 30,804,000
75,000 GT
SDR 76,104,000
1B.2 PROPERTY
VESSEL SIZE
FORMULA
2,000 GT or less
2,001-30,000 GT
30,001-70,000 GT
70,001 GT or more
EXAMPLE
25,000 GT
SDR 15,402,000
75,000 GT
SDR 38,052,000
79
FORMULA
5,000 GT or less
5,001 GT or more
Maximum
EXAMPLE
25,000 GT SDR 11,400,000 See earlier comment regarding the mechanics of the calculation
75,000 GT
SDR 32,400,000
Following the spill resulting from the loss of the Erika, the limits were increased under an amendment, without
objection, in 2000 as follows:
2.2 LIABILITY UNDER CLC AS AMENDED IN 2000 (IN FORCE 1 NOVEMBER 2003)
VESSEL SIZE
FORMULA
5,000 GT or less
5,001 GT or more
Maximum
EXAMPLE
80
25,000 GT
SDR 17,130,000
75,000 GT
SDR 48,680,000
81
VESSEL SIZE
FORMULA
Other Vessels
EXAMPLE
25,000 GT
75,000 GT
The US Coast Guard has subsequently announced increases in liability limits to reflect inflationary erosions since the
2006 change. These came into effect on a provisional basis on 1 July 2009, and were formally adopted with effect
from 5 February 2010. Further increases are likely every three years.
6.2 AMENDED LIMITS OF LIABILITY UNDER OPA 1990 WITH EFFECT FROM 5 FEBRUARY 2010
VESSEL SIZE
FORMULA
Other Vessels
EXAMPLE
25,000 GT
75,000 GT
US$ 373.800,000
82
US$ 87,606,000
The US has also established an Oil Spill Liability Trust Fund (OSLTF) administered by the National Pollution Funds
Center which supports OPA 90 and is funded by a tax on oil produced and imported into the USA. The OSLTF
responds where a responsible party denies liability or fails to meet that liability or where the first level of liability is
insufficient to fund all claims. It can provide up to $ 1 billion any one oil pollution incident.
EXAMPLE
A double hull tanker of 25,000 GT will need a COFR of US$ 55 million, comprising US$ 47,500,000 under
OPA 1990 as amended plus US$ 7,500,000 under CERCLA.
83
Through 14 August 2015, 23 contracting states, including the European Union, representing 42.23% of world
tonnage have acceded to this protocol.
Notwithstanding the above, the principle provisions of this protocol came into effect within the European Union and the
European Economic Area via the EU Passenger Liability Regulation # 329/2009 on 31 December 2012.
LIMIT
10. ILO MARITIME LABOUR CONVENTION (MLC) 2006 (IN FORCE 20 AUGUST 2013)
30 countries were required to ratify the Maritime Labour Convention for it to start the 12 month countdown to coming
into force. On 20th August 2012 the 30th country signed up, being the Russian Federation.
At 14 August 2015 there were 66 ratifications, although in some 16 of these jurisdictions the convention is not yet in
force. In the majority of these 4 cases, in force status is expected within the next 12 months. In 2007 the European
Union authorized its member states to ratify the Convention by the end of 2010, but in a number of EU states this
process is still incomplete. Accordingly the MLC came into force in August 2013.
The Convention is kept under continuous review by a tripartite committee including representatives of shipowners,
seafarers and governments. Following the first committee meeting various amendments were agreed to the liability and
financial security rules, which seem likely to come into force in early 2017
Whilst most liabilities under MLC are typically covered by P&I insurance, the amendments to the financial security
requirements include, inter alia, unpaid crew wages following abandonment which is very much not a traditional P&I
risk. It remains to be seen how this develops.
84
VESSEL SIZE
2,000 GT or less
2,001-50,000 GT
50,001 GT or more
Maximum
25,000 GT
SDR 44,500,000
SDR 51,175,000
75,000 G
SDR 91,000,000
SDR 104,650,000
EXAMPLE
85
86
RULE
LIMITATION OF LIABILITY
Hague (1934)
N/A
N/A
Hamburg (1978)
Higher of SDR 2.50 per kg or SDR 835 per 2.5 times freight on goods delayed
package/shipping unit
subject to an upper limit if lost
Rotterdam (2009)
US COGSA (1936)
N/A
05
CONTACTS
MARINE
Pharmaceuticals,Commodity
Business, Frozen & Chilled Goods
(Cargo & StockThroughput)
Port Authorities
(Ports & Terminals)
War Risks
Charterers Liability &
Damage to Hull
(Protection & Indemnity)
88
CONTACTS
Demolition Risk
(Hull & Machinery)
Stevedores
Terminal
Operators
Yachts
Protection &
Indemnity
Marine Liability
Piracy, Kidnap
& Ransom
(War Risks)
AJGINTERNATIONAL.COM
Arthur J. Gallagher (Specialty) is a trading name of Arthur J. Gallagher (UK) Limited which is authorised and regulated by the Financial Conduct Authority. Registered Office:
The Walbrook Building, 25 Walbrook, London EC4N 8AW. Registered in England and Wales. Company Number: 1193013. www.ajginternational.com
89
Richard Sturgeon
Divisional Director
+44 (0)20 7204 1887
richard_sturgeon@ajg.com
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90
Paul Brandram
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timothy_sullivan@ajg.com
CONTACTS
Chris Taylor
Divisional Director
+44 (0)20 7560 3337
Chris_Taylor@ajg.com
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Associate Director
+ 44 (0)207 234 4716
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Associate Director
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Associate Director
+44 (0)20 7560 3657
sophia_quentin@ajg.com
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Divisional Director
+44 (0)20 7560 3655
patrick_wilmot@ajg.com
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Associate Director
+44 (0)20 7204 1841
wayne_godfrey@ajg.com
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Associate Director
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Associate Director
+44 (0)20 7204 6033
edward_remnant@ajg.com
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Associate Director
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william_baynham@ajg.com
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+44 (0)20 7234 4718
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Associate Director
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deniz_nagatay@ajg.com
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Associate Director
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Associate Director
+44 (0)20 7204 6121
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Associate Director
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mike_ingham@ajg.com
Anne Paige
Associate Director
+44 (0)20 7560 3058
anne_paige@ajg.com
Alex Vullo
Associate Director
+44 (0)20 7204 1891
alex_vullo@ajg.com
Dave Clark
Associate Director
+ 44 (0)207 234 4717
dave_clark@ajg.com
Richard Lockwood
Associate Director
+44 (0)20 7204 6198
richard_lockwood@ajg.com
Richard Pinkerton
Associate Director
+44 (0)20 7560 3027
richard_pinkerton@ajg.com
David Waller
Associate Director
+44 (0)20 7560 3898
david_waller@ajg.com
Andrew Albins
Operations Director
+44 (0)20 7560 3454
andrew_albins@ajg.com
Amanda Gray
Account Executive
+44 (0)20 3425 3289
amanda_gray@ajg.com
Wendy Needham
Account Executive
+44 (0)20 7204 1854
wendy_needham@ajg.com
Brian Webster
Account Executive
+44 (0)20 7560 3037
brian_webster@ajg.com
Angus Blayney
Account Executive
+44 (0)20 7204 8312
angus_blayney@ajg.com
Michael Hutchins
Account Executive
+44 (0)20 3425 3406
michael_hutchins@ajg.com
Lauren Osman
Account Executive
+44 (0)20 7204 1885
lauren_osman@ajg.com
Anneliese Campbell
Account Handler
+44 (0)20 7560 3378
anneliese_campbell@ajg.com
Melanie Buitendag
Account Executive
+44 (0)20 3425 3195
melanie_buitendag@ajg.com
Isabel James
Account Executive
+44 (0)20 7204 6210
isabel_james@ajg.com
Clare Stewart
Account Executive
+44 (0)20 7560 3388
clare_stewart@ajg.com
Vincenzo Corsaro
Technician
+44 (0)207 560 3457
vincenzo_corsaro@ajg.com
Liera Doyle
Account Executive
+44 (0)20 7204 8321
liera_doyle@ajg.com
Richard Landers
Account Executive
+44 (0)20 7204 1890
richard_landers@ajg.com
91
Arthur J. Gallagher (UK) Limited is authorised and regulated by the Financial Conduct Authority.
Registered Office: The Walbrook Building, 25 Walbrook, London EC4N 8AW. Registered in England and Wales. Company Number: 1193013. www.ajginternational.com
The information contained in this market has been compiled by Arthur J. Gallagher from information provided by each insurer. This does not purport to be comprehensive or to give
legal advice. While every effort has been made to ensure accuracy, Arthur J. Gallagher cannot be held liable for any errors, omissions or inaccuracies contained within the document.
Readers should not act upon (or refrain from acting upon) information in this document without first taking further specialist or professional advice.
AJGINTERNATIONAL.COM