The London P&I Club announced its financial results for 2023/24, reporting an operating surplus of US$36.3m, strengthening its free reserves to US$149.8m. Gross Earned Premium increased by 4.5% from the previous year and with positive underwriting contributions from all product lines the Club’s combined ratio was 83.1%. At the same time there was a positive investment return of US$17.4m, equivalent to 5.0%.
The positive result follows action to bring pricing into line with claims and associated expenses and to improve the Club’s risk profile. There was a favourable claims outturn across all severity bands, notably in the US$1million+ as well as the highest frequency, sub-US$100,000 layers.
Ian Gooch, CEO of The London P&I Club, commented: “The work over recent years to address discrepancies between fleet premiums and risk profiles has helped to restore rates and deductibles to more sustainable levels. These measures have fed into the result especially at the attritional, day-to-day end of the claims range. It has been a concerted – and ongoing – effort with the strongest backing of the Board and we are grateful for the continued support and confidence of all of Members, Assureds and Brokers’’.
The announcement of the improved financial results follows a positive renewal for the Club in February 2024, with targets met on rating and deductible increases and an 8.9% growth in mutual tonnage compared to the previous year. Post renewal, the Club’s mutual book stood at 44.1m gt, up from the 40.5m gt seen 12 months prior.
Later this year Ian Gooch, will be stepping down after 15 years as CEO and 21 years as a Director of A. Bilbrough & Co., Managers of The London P&I Club. Ian Gooch will be succeeded by James Bean, from NorthStandard P&I Club. To ensure an orderly transition, Ian will remain with the Bilbrough team.
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