S&P GLOBAL Ratings has upgraded London P&I Club’s outlook from negative to stable, on the back of the marine mutual’s improved operating performance and strengthened capital position.

The prominent ratings agency has also reaffirmed the club’s long-term financial strength rating as BBB.

The development will come as a fillip for the International Group affiliate, which has attracted some unfavourable broker comment after being forced to levy supplementary calls on its shipowner members in recent years.

Following the decision, 10 of the 12 group clubs are now rated stable by S&P. The exceptions are Britannia which is rated negative, and Japan Club, which is the sole club to be rated positive.

S&P said that the revised outlook is a result of more disciplined underwriting practices, with premium rate increases expected to support earnings at breakeven levels over 2025-2026.

London is expected to maintain its capital position above the 99.95% confidence level of S&P Global’s model.

The outlook also noted that the club’s solvency ratio has also improved to 190.5% as of February 2024, up from 129% in February 2023.

“This improved outlook from S&P Global is a clear reflection of the steps the London P&I Club has taken over the past few years to strengthen its capital position by underwriting business at more sustainable rates, whilst concurrently growing the membership across all markets,” said chief executive James Bean.

London recently announced a 5% general increase for the February 2025 renewal round, putting its price hike at the same level as NorthStandard, Skuld, Steamship Mutual, Swedish Club and West of England.

The outliers are Britannia, which is seeking 7.5%; the American Club, which is looking for 7.0%; and the UK Club on 6.5%.

Gard is planning for a 4.0% increase in premium volumes, while small craft specialist Shipowners’ Club has frozen prices. Japan Club is still to declare.

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