SHIPOWNERS’ Club has bucked the trend for renewal rate hikes and is keeping headline P&I premiums and deductibles unchanged at the February 2025 renewal.

However, claims records will be scrutinised closely and there may be adjustments up or down in individual cases.

The price freeze has been made possible by a falling combined ratio and improved underwriting performance, the marine mutual said in a statement announcing the decision.

The move makes the small craft specialist the 11^th affiliate of the 12-member International Group to show its hand.

To date, Britannia is seeking a 7.5% increase, the American Club 7.0% and the UK Club 6.5%.

NorthStandard, Skuld, Steamship Mutual, Swedish Club and West of England are all looking for an additional 5%; and Gard wants a targeted 4% rise in premiums.

Gard, Skuld and Steamship Mutual all have sufficient balance sheet strength to give renewing entries substantial cashbacks, which more than offset the higher premiums sought by that trio of clubs.

All announced premium increases from all clubs are subject to negotiate, with brokers often able to secure discounts for large fleets and good records.

SOP, as the club is otherwise known, said that at the half-year stage, its combined ratio stood at 95.8%, with an underwriting surplus of $ 5.4m.

That represents an improvement on the 98.5% CR and $1.8m surplus seen at the same stage of the prior year.

“Given the margin between premium income and claims costs the board resolved that no general increase would be applied for 2025,” the statement added.

Claims from the members for the current policy year are at a slightly lower level than was the case in 2023, although claims on the IG pool scheme are higher.

Premium income has continued to increase and this has offset the increase in claims activity.

There has also been organic growth, with existing members expanding their entries in the club.

Investment returns in the year to date have been favourable, with a positive investment result forecast.

Next February’s renewal round marks the seventh successive year of inflation-busting increases. Modal average increases came in at 7.5% in 2020, 10% in 2021, 12.5% in 2022, 10% in 2023 and 7.5% in 2024.

Factors at work include increased claims costs for most clubs, with pressure particularly being felt through the pool scheme.

While the overall number of pool claims in the year to date remains confidential, Lloyd’s List understands that they numbered 11 as of the end of October, more than in the entire 2023-24 policy year.

Rates will be adjusted separately to reflect any changes in the cost of the International Group reinsurance programme, which looks likely to rise sharply in the wake of the Baltimore bridge collapse.

Earlier this month, SOP acquired Lloyd’s managing general agent Waterborne for undisclosed consideration.

The deal will allow the club to roll out a hull & machinery product over time, and the cover will shortly be available to selected British and Irish clients.

SOP was established in 1855 and now insures over 35,000 vessels across a range of operating sectors and geographical areas.

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