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MARINE P&ICOMMERCIAL MARKET REVIEW | SEPTEMBER 2015

FOUNDED BY ARTHUR GALLAGHER IN CHICAGO IN 1927, ARTHUR J. GALLAGHER & CO HAS GROWN TO BE ONE OF THE LARGEST, MOST SUCCESSFUL INSURANCE BROKERAGE AND RISK MANAGEMENT COMPANIES IN THE WORLD. WITH EXTRAORDINARY REACH AND DEPTH ACROSS INTERNATIONAL BORDERS, OUR PARENT GROUP EMPLOYS OVER 20,000 PEOPLE AND ITS GLOBAL NETWORK PROVIDES SERVICE IN MORE THAN 140 COUNTRIES.

Outside the US, we use the brand name Arthur J. Gallagher.

Wherever and whenever there is an issue of risk we’re there for our clients – from individuals to small businesses to international conglomerates. Our people, our depth of technical expertise and our global reach is critical in delivering unrivalled coverage, risk management and placement expertise.

We work seamlessly across countries and international territories. Where we do encounter difficulties and complexities we meet them head on. We dismantle barriers never letting them get in the way.

We work tirelessly to provide solutions that drive value and competitive advantage for the benefit of all our clients and we liberate our people to do what they do best: promoting and protecting our clients’ interests. We just do not give up; whether it’s sourcing cover for the thatched cottage in England; cyber risks across European borders; complex coverage for the international supermarket chain; marine cargo in Australia; political risk coverage in developing economies; energy cover in extreme environments; or helping our banking partners with their comprehensive homeowner offer.

Family values have been core to our culture since our company was founded and this drives the way in which we, Arthur J. Gallagher, look after our clients. Since 1927 we have built our business for today. For tomorrow, we continue to invest in our business.

A BUSINESS WITHOUT BARRIERS

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CONTENTSCOMMERCIAL P&I MARKET REVIEW 2015

Welcome from the Executive Director .... 05

The World of P&I According to AJG....... 06

Executive Summary .............................. 08

Fixed Premium P&I Insurance Explained . 16

P&I Market Facilty Variations ................ 17

Commericial P&I Market Today ............. 18

P&I Commercial Market News .............. 19

Commercial P&I Market Overview ......... 20

MARKET FACTS & FIGURES

Introduction to Facts & Figures ............. 22

British Marine ...................................... 24

Carina .................................................. 26

Eagle Ocean Marine ............................. 28

Hanseatic Underwriters ........................ 30

Hydor AS ............................................. 32

Ingosstrakh Insurance Co. .................... 34

Lodestar Ltd ........................................ 36

Navigators P&I ..................................... 38

Osprey Underwriting Agency Ltd ........... 40

Raetsmarine BV ................................... 42

Rosgosstrakh Ltd ................................. 44

NON-IG MUTUAL MARKET FACTS & FIGURES

Korean Shipowners Mutual P&I............. 46

NON-IG CHARTERERS FACTS & FIGURES

Charterama BV .................................... 48

Charterers P&I Club ............................. 50

Norwegian Hull Club ............................ 52

INDUSTRY STATISTICS

OWNERS MARKET

Introduction ......................................... 54

P&I Owned Premium

Income Development ............................ 56

P&I Owned GT Development ................. 58

P&I Owned Average P&I Rate

Per GT Development ............................. 60

CHARTERERS MARKET

P&I Charterers & Traders

Premium Income Development ............. 62

P&I Charterers & Traders Number

of Vessels Insured Development ........... 64

P&I Charterers & Traders Average

Premium Per Vessel Development ......... 66

NON-IG MUTUAL MARKET

Non-IG Mutual P&I

Premium Income Development ............. 67

Non-IG Mutual P&I GT Development ..... 68

Non-IG Mutual P&I Average

P&I Rate Per GT Development ............. 69

Rating Agency Analysis ......................... 70

MAJOR LIMITING CONVENTIONS

AND STATUTES AFFECTING P&I RISKS

Developments in the past 12 months .... 74

CONTACTS

Marine Division Contacts ...................... 88

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04

05

02

COMMERCIAL P&I MARKET REVIEW 2015

01

COMMERCIAL P&I MARKET REVIEW SEPTEMBER 2015

5

COMMERCIAL P&I MARKET REVIEW 2015

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.

With the shipping market still continuing to struggle through this prolonged depressed trading environment, the commercial P&I markets may offer an opportunity for a segment of the world’s small ship operators to reduce their operational expenditure, which this review will offer more detail on. The “AJG Commercial P&I Market Review” will focus on the leading fixed premium, non-IG mutual and charterers liability facilities, which are generally accessed via London brokers.

Arthur J. Gallagher P&I remains at the forefront as industry leaders, this is something we are extremely proud of and demonstrates our unrivalled value added service and commitment to our clients and partners alike.

Yours sincerely,

Malcolm Godfrey Executive Director Marine Division | Specialty Risks

WELCOME TO OUR ANNUAL COMMERCIAL P&I MARKET REVIEW

MALCOLM GODFREY EXECUTIVE DIRECTOR


6

THE WORLD OF P&I ACCORDING TO AJG

USA, NEW YORK

• Eagle Ocean Marine

UK, LONDON

• British Marine (QBE Group)• Carina• Lodestar Ltd• Navigators P&I• Osprey Underwriting Agency• Charterers P&I Club

USA, NEW YORK

• American Club

UK, LONDON

• Britannia P&I Club• London P&I Club• Shipowners P&I Club• Standard Club• Steamship Mutual P&I• The UK Club• West of England

UK, NEWCASTLE

• North of England

GREECE, ATHENS

• Aigaion Insurance Co. SA

NORWAY, ARENDAL

• Gard AS


7

COMMERCIAL P&I MARKET NON-IG MUTUAL P&I CLUB

RUSSIA, MOSCOW

• Ingosstrakh• Rosgosstrakh Ltd

GERMANY, HAMBURG

• Hanseatic Underwriters

NETHERLANDS, ROTTERDAM

• RaetsMarine BV• Charterama BV

NORWAY, BERGEN

• Norwegian Hull Club

NORWAY, OSLO

• Hydor AS

NORWAY, OSLO

• Skuld P&I

JAPAN, TOKYO

• Japan P&I Club

KOREA, SEOUL

• Korea P&I Club

CHINA, BEIJING

• China P&I Club

SWEDEN, GOTHENBURG

• Swedish Club

INTERNATIONAL GROUP P&I CLUB


8

OWNED TONNAGE +4.56% (2.1M GT)

TOTAL NON-IG SPENDING AT US$ 400M

OWNED P&I AVERAGERATE REDUCES BY

–2.87%

OWNED P&I MARKET PREMIUM

+ 1.56% (US$ 4.6M)

AVERAGE RATE PER GT

US$ 6.516

COMMERCIAL P&I MARKET INDICATORS FINANCIAL HIGHLIGHTS 2014 YEAR

EXECUTIVE SUMMARY

“Name your price!”… Underwriters operating within the commercial P&I market may as well forget rating models and underwriting guidelines, whilst the “survival of the fittest” trading environment continues. When will the boxing gloves really come off? Underwriters say they are in the middle of a rating war in an ever softening market, yet there are no victims or forced market exits in the commercial P&I arena. Every year we at AJG observe the new entrants win new business at cheaper prices and the established markets continue to mitigate their premium losses. Isn’t it time for the established heavyweights to react and kill off the competition? You might say that underwriting principals must be upheld and that risks should not be underwritten at unsustainable levels, some underwriters will just say that “we cannot justify and will not compete at those premium levels” or may also criticise a particular market stating that they will not survive the next year as they are “desperate for income”– yet a client will move to a facility who will “buy in the business” and market continues as if nothing has really changed.

The commercial P&I market continues to evolve as new entrants re-shape the market environment, feeding from the established market players who continue to see premiums diminish over a five year period.

What does this all mean? Well… Shipping companies, charterers and operators continue to have more choice, buying power and can opt to save money in the fixed premium market – some ship owners will ask “why should a 20 year old panamax bulker pay in excess of US$ 150k in premium to an IG Mutual Club when a fixed market offering a U$ 1 billion limit can do it for a fraction of the cost”, with A-rated security? There are pro’s and con’s in this strategic scenario, the choice here needs to be carefully reviewed.

Collectively the non-IG commercial markets account for over $400 million in premium income (at 2014), which approximately makes up 10% of the total IG and non-IG market spend, if you add the IG Club fixed premium portfolios, we at AJG anticipate the total premium generated would be in the region of $700 million, which is certainly something not to be underestimated in terms of attention that should be given to this market sector.

“THE CHASE FOR PREMIUM CONTINUES, PROMOTING

FURTHER MARKET VOLATILITY AND RATE REDUCTIONS”

ALEX VULLO ASSOCIATE DIRECTOR


9

OWNED TONNAGE +4.56% (2.1M GT)

TOTAL NON-IG SPENDING AT US$ 400M

OWNED P&I AVERAGERATE REDUCES BY

–2.87%

OWNED P&I MARKET PREMIUM

+ 1.56% (US$ 4.6M)

AVERAGE RATE PER GT

US$ 6.516

OWNED RATE PER TON HITS A NEW LOW WITH OWNED GT RISING STEADILYContinued market competition and oversupply has again seen the commercial P&I market average owned rate per GT reduced by -2.87% in 2014. When analysing the compound effect since 2010 the average rate has fallen by -14.92% (or US$1.143 PGT) during this period. The owned market rate per ton has reduced further from the -9.84% average reported in our last 2013 market review. This new market low sees the average rate per GT at US$6.51, which is down from US$ 6.708 reported in 2013. The overall market owned premium increased by another 1.56%, up to US$ 300 million, which is 8.99% greater than the 2010 policy year overall premium position. The Owned GT development has also seen a progressive increase of 4.56% in 2014 (similar to 2013 at +4.9%) to 46.15 million GT, which is a 21.9% increase since 2010.

On the whole the commercial fixed premium P&I market has strengthened steadily in terms of premium and also tonnage underwritten over a five year period, a reflection that these markets continue to mature. However, in relative terms this growth over the period accounts for a modest $27.36M in gross premiums written. By way of comparison, this is equivalent to half of the annual fixed P&I premium from owned tonnage placed with RaetsMarine (at 2014) representing 10.1M GT, which is equivalent to the fixed P&I tonnage insured by the British Marine (at 2014). Whilst we can observe that the five year growth has been modest, it would suggest that the 13 International Group Clubs should not be overly concerned. One exception may be Shipowners’ P&I Club, with their core business focusing on smaller and specialised tonnage, who reported a 96% retention rate at the 2015 renewal. The theme therefore would appear to demonstrate that the fixed premium commercial insurers are more often than not competing against each other on existing business written. Likewise as a changing fixed premium market now looking at larger tonnage emerges this has also seen the majority of IG Clubs establishing their own defensive mechanisms through the creation of fixed premium products for specific vessel types. We anticipate greater use of such schemes, despite the IG’s drive to promote mutuality and the pooling of risks, should the threat of losing tonnage to the fixed premium providers becomes more prevalent.

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

2008 2009 2010 2011 2012 2013 2014

$6,200

$6,400

$6,600

$6,800

$7,000

$7,200

$7,400

$7,600

$7,800

USD

Per

Ton

Tonn

age

(’000

s)25,000

30,000

35,000

40,000

50,000

45,000

Average Rate PGT

2009 2010 2011 2012 2013

Total Owned GT

2008 2014$6,000

AVERAGE RATE PER GT VS OWNED GT

PREMIUM DEVELOPMENT USD (‘000s)

“On the whole the commercial market has strengthened steadily in terms of premium and tonnage underwritten over a five year period”


10

COMMERCIAL MARKET CYCLICAL DEVELOPMENTThe commercial market prolonged soft market cycle continues in 2014, where AJG has observed the average reduction fall below the expiring premium level. In 2014 the average reduction was in the region of -2.87%.

The chart below indicates the annual average rate change per ton development, which provides an overview of the market cycle, demonstrating that business continues to be either won at lower premium levels or business that is being renewed at a cheaper premium to the prior policy year.

MARKET CYCLE

-10%

-8%

-6%

-4%

-2%

0%

2%

4%

6%

2010 2011 2012 2013 2014

Perc

enta

ge

2009

“Continued market competition and oversupply has again seen the commercial P&I market average owned rate per GT reduced by -2.87% in 2014”

TWELVE MONTH MARKET DEVELOPMENT BY OWNED P&I PREMIUM INCOME (USD ‘000)

# MARKET 2013 P&I owned income USD ‘000s

2014 Change # MARKET 2014 P&I owned income USD ‘000s

Result +/– (USD ‘000d

1 British Marine $100,000 1 British Marine $97,500 -$2,500

2 Raetsmarine $52,000 2 Raetsmarine $52,500 +$500

3 Osprey $30,000 3 Lodestar $30,000 +$5,000

4 Lodestar $25,000 4 Osprey $27,500 -$2,500

5 Ingosstrakh $21,800 5 Navigators $20,000 -$1,430

6 Navigators $21,430 6 Hanseatic $19,500 +$1,200

7 Hanseatic $18,300 7 Ingosstrakh $16,500 -$5,300

8 Hydor AS $9,000 8 Hydor AS $14,000 +$5,000

9 Carina $7,250 9 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


11

$0.000

$2.000

$4.000

$6.000

$8.000

$10.000

$12.000

Navigators British Marine Lodestar Hydor AS Eagle Ocean Marine Hanseatic Ingosstrakh RaetsMarine Carina Rosgosstrakh Ltd

2014Average

2013 2014

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120.000

British Marine RaetsMarine Lodestar Osprey Underwriting

Agency

Navigators HanseaticUnderwriters

IngosstrakhInsurance Co

Hydor AS Eagle OceanMarine

Carina RosgosstrakhLtd

2013 2014

OWNED RATE PER GT DEVELOPMENTThe commercial market average owned P&I rate for 2014 stands at US$ 6.516 per GT. Navigators P&I has the highest rate per GT at US$ 10.53, however, this figure has fallen from US$ 11.51 (-8.54%) since 2008. The Navigators fixed premium average rate has been on the increase since 2011, where AJG has observed

that premiums and GT levels have reduced annually causing the average rate to maintain at a higher level. Ingosstrakh, RaetsMarine, Carina and Rosgosstrakh have the lowest average rate per GT values, which range between US$ 3.929 down to USD 3.033 and are therefore perceived to underwrite at more competitive premium levels.

OWNED MARKET DEVELOPMENT INDICATOR BY PREMIUM INCOMEThe 2014 policy year saw Lodestar take the third place spot, with a premium income of US$ 30 million. Osprey (4th) has continued to reduce their US market share in the fish boat sector taking their premium income down by US$ 2.5 million during the year. Ingosstrakh has moved

down from fifth place to seventh with Navigators (5th) and Hanseatic (6th) moving up, albeit both facilities have seen premiums reduce. British Marine still remains the largest fixed premium insurer with premiums in the region of US$ 97 million. The top four fixed premium providers (by income) make up 70% of the marketplace, with British Marine making up 32.4% alone.

RATE PER GT DEVELOPMENT 2014 VS 2013

PREMIUM INCOME DEVELOPMENT 2014 VS 2013

The top four fixed premium providers (by income) make up 70% of the marketplace


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BUSINESS ENVIRONMENTThe 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 Club‘s 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 Lloyd’s. We at AJG do not expect to see any major changes at RaetsMairne.

BILLION DOLLAR LEAGUEIn our last commercial market review, we at AJG talked about the need for diversification becoming important for future success. Whilst there haven’t 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

Group (IG) P&I Club business. Three market facilities Lodestar Ltd, Navigators P&I and RaetsMarine have joined forces to collectively purchase the additional US$ 500 million layer of reinsurance in order to satisfy the minimum and deposit premiums requested by the Lloyd’s market. The focus here, as we see it, is to offer cheaper fixed premium solutions using the USD 1 billion limit for vessels up to 40,000GT, however, the release call hindrance may still slow down business transfer, despite a number of Clubs having relatively low release call margins. It is our understanding from market sources that plans are afoot for some fixed premium facilities to offer a release call bank guarantee facility, as part of a package of leaving the IG Club system, which would certainly be attractive proposition for a number of shipowners who many not have access to an A-Rated Bank. Earlier in the year AJG called for the IG Club market to accept each other’s security guarantees as a provision for release calls, this is something we understand is now being discussed by the IG committee. The effective date of the limit change was the 20th February 2015; therefore the three fixed premium facilities were unable to compete during the IG Club 20th February 2015 renewal. AJG does envisage that a number of Mutual members may look elsewhere this year if Clubs continue to apply a further general increase in 2016. We at AJG however envisage the 20th February 2016 renewal to being relatively soft with lower general increases (if any) being applied, therefore it will remain to be seen whether the fixed premium insurers will be able to capitalise at the end of the IG Club hard market cycle in 2016.

THE BILLION DOLLAR LEAGUEThe following facilities are able to offer limits of liability up to USD 1Billion:

• British Marine• Hydor AS*• Ingosstrakh• Korean P&I Club• Lodestar Ltd*• Navigators P&I*• RaetsMarine BV*

*With effect from 20/02/2015


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$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

2008 2009 2010 2011 2012 2013 2014

$10,000

$10,200

$10,400

$10,600

$10,800

$11,000

$11,200

$11,400

$11,600

$11,800

$12,000

USD

Per

Ton

Tonn

age

(’000

s)

30,000

34,000

32,000

40,000

38,000

36,000

42,000

48,000

46,000

44,000

2009

Average Premium per vessel

2010 2011 2012 2013 2014

Number of vessels on risk

AVERAGE PREMIUM PER VSL VS NO. VSL ON RISK CHARTERER & TRADERS The average premium per vessel fell by a substantial -14.98% in 2014, as the average premium per vessel hit a six year low to US$ 10,282 (2013PY US$ 11,823), which equates to a 30 day minimum of USD 845.09 per vessel on risk.

This significant average rate fall is mainly down to the sudden reduction of the Norwegian Hull Club average premium reducing by 21.39% in one year (2013: US$ 7,353 to 2014: US$ 5,780).

The total charters specialist premium income was reported at US$ 75.1 million in 2014, which is -0.99% down from the previous policy year, however, is 9.87% up from 2010. The other specialist charterer’s insurers saw a very small increase in average rate per vessel in the region of 0% and 1.96%. In the same year the number of vessels on risk increased by 1.25% (45,557 vessels). Looking back over the past five years to 2010, the number of vessels on risk was reported in the region of 39,501, therefore the growth over this period was 15.33%.

The Charterers P&I Club saw a modest growth in premium income by 0.35%, with RaetsMarine reporting increases in the region of 1.96%, whereas Charterama BV saw the largest increase in premium growth reporting an increase of 5%. The Norwegian Hull Club however has reported a deficit of -18.18%.

PREMIUM DEVELOPMENT USD (‘000s)

“The average premium per vessel fell by a substantial -14.98% in 2014 (an average 30 day minimum period is in the region of US$ 845 per vessel)”


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EXPECTATIONS FOR 2015We have previously written that the market is trading in a “survival of the fittest” environment. Therefore, if the market requires further income revenues the key growth will come from making serious inroads into the IG Club market. There appears, however, to be no fundamental change in the prevailing market conditions. Oversupply, mixed with increased competition and cheap reinsurance capacity will continue to allow rates to fall. Therefore 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.

It will however remain to be seen what impact the “billion dollar league” will have on the 2016/17 IG P&I renewal to determine whether the collective strategy to buy bigger limits of reinsurance capacity will actually pay off. We do however expect to see some movement between the IG sectors to the commercial market; however we suspect that Owners considering a change will be operators with tonnage less than 10,000 GT.

MORE TRANSPARENCYWe at AJG believe now is the time for all commercial P&I markets to provide full and transparent reporting data. All of the International Group P&I Clubs provide a transparent overview in their annual report an account and the commercial P&I market still appears to be decades behind in providing accurate up-to-date information on a calendar year basis. The manner in which IG Club currently account for their fixed premium business is not always clear and this is something that we would also like to understand better. This will enable AJG to provide an even more comprehensive overview of both IG and commercial markets. We at AJG believe this to be significant as we anticipate the total fixed call income would account for almost 15%-17.5% of the entire P&I premium spend across all markets.

In particular AJG and our clients would like to see more information on claims trends, reinsurance costs as well as profitability in the non-IG market. We strongly feel that the more we and our clients know about a market the more confidence the buyer will have, along with giving the market as a whole further credibility.

NOTE: The Commercial P&I Market continues to play an important role in the marine insurance industry and as this market expands, so does awareness, credibility and desirability. All fixed facilities ultimately offer the same product and compete for the same business; however clients will need to be carefully guided on a suitable market candidate in the selection process. There are many factors and disparities offered by each carrier, such as service, reputation, flexibility at renewal, ability to put up a letter of security and more importantly a track record for reimbursing their clients on claims. With rate reductions and more capacity on the horizon clients will need to choose wisely to take advantage for this prevailing soft market. We at Arthur J Gallagher are certainly here to help!

“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

WHAT IS FIXED PREMIUM INSURANCE?

Fixed premium P&I insurance indemnifies ship owners, operators and charterers for third party liabilities arising from a fortuitous event or a marine peril.

Third party risks include a carrier’s liability to a cargo owner for damage to cargo, a ship’s liability after a collision, environmental pollution, the ship’s

liability to its crew, fines and war risks etc. The term “fixed premium” means exactly that, as the terms and conditions offered by a commercial insurance

company, do not expose clients to potential excess supplementary calls, unlike IG Group Clubs.

The premiums involved in this market sector are often more competitive, compared to an IG Group Club option, as insurance packages are specifically

tailored to meet the demands of the risk entailed, on a reduced limit of liability basis.

DO IG P&I CLUBS PROVIDE FIXED PREMIUM INSURANCE?

Fixed premium insurance contracts are typically provided by insurance companies or underwriting agents outside of the International Group of P&I Clubs,

however some of the IG P&I Clubs do provide “Owners P&I” fixed premium terms for some longstanding fleets, US flagged fleets and Government fleets,

which have been approved by the International Group.

A number of P&I Clubs, such as American, Gard, Skuld, SOP and Steamship Mutual also have fixed P&I premium facilities in place for smaller inland

craft and U.S. yachts. AJG will focus on these facilities in our “AJG International Group Club P&I Review 2015” which will be published towards the end

of this year. All of the IG Clubs provide alternative fixed insurance products, such as Charterers’ Liability Insurance and other marine related products,

which do not fall under the conventional IG Group P&I product or IG group reinsurance programme.

DIFFERENCES BETWEEN COMMERCIAL P&I MARKETS AND IG

GROUP CLUB P&I INSURANCE?

• GENERAL INCREASES - The fixed premium market does not adopt

the annual general increase philosophy, which is a tradition practiced

amongst most of the IG P&I Clubs. Renewals are instead underwritten

on the assureds’ individual merits and loss record, although there may

be increases sought on the basis of exposure, operating costs or the

overall performance of the insurers portfolio.

• ANNUAL MANDATORY REQUIREMENTS - Over the last few years we

have seen many P&I Clubs’ insert annual mandatory uplifts/ requirements,

which are often non-negotiable, such as deductible increases etc.

This is a practice which the commercial market does not follow.

• PROSPECTS FOR SUPPLEMTARY OR EXCESS CALLS - IG Group

Clubs have the power to make excess supplementary calls if there

is a need to raise funds, which are non-negotiable. The non-mutual

commercial insurance companies do not have this capability.

• RELEASE CALLS – The Commercial Market gives clients freedom

to change insurer without having to release themselves from future

liabilities to supplementary calls or excess supplementary calls, which

is inherent within the IG Club rules.

• COMPETITION - The commercial insurance companies are able to

offer independent terms as well as competing with each other to win

business. All of the non-IG facilities are free from the constraints of

the International Group Agreement, something which the IG Clubs

voluntarily abide by.

• SECURITY GUARANTEES – IG P&I Clubs have an integral advantage

over the commercial insurance market, with the ability to put up an

immediate letter of guarantee to secure the release of an arrested vessel,

without additional cost. However, fixed premium insurers typically need to

contact their reinsurers to obtain security guarantees, which can take time

and may come with additional costs, which would ordinarily be passed

onto the assured. It is important to note that the ability of each individual

insurance company differs, when it comes to issuing letters of security.

• THE “OMNIBUS RULE” - The fixed premium market does not benefit

from the IG Club “Omnibus Rule”, which allows the individual IG Club

board’s to decide whether they can indemnify a Member in difficulty.

• UNDERWRITING FOR PROFIT - IG Group Clubs are focused on

“not for profit service”, whereas a commercial insurance company

can be more profit focused, which is an important factor to consider,

when handling claims to ensure that the claimant is indemnified at an

appropriate level. This is where a strong broker like AJG will add value!

• SERVICE PHILOSOPHY - In an IG Group Club, the managers are

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

changes, scope of cover, claims payments and premiums calls.

• LIMITS OF LIABILITY - Without access to the International Group

Pool, fixed premium coverage will be limited to a specific limit of

liability, however clients may still be exposed to catastrophes, which

could potentially exceed smaller limits. Choosing the appropriate level

of cover is something that AJG can help you with.

• BLUE CARDS - Some fixed premium insurance companies issue

blue cards which are not approved by a number of flag states or port

authorities. It is vital to ensure that Bunker Blue Cards and/or

CLC Blue Cards are accepted by the shipping authorities prior to trading.

• CERTIFICATES OF FINANCIAL RESPONSIBILITY (COFR) – A

requirement under the US OPA 90 Act (United States Oil Pollution

Act), where any vessel over 300 GT requires a valid COFR and COFR

guarantee cover in place. Guarantee coverage is provided by several

COFR guarantee companies, which require letters of undertaking by an

International Group P&I Club, most of the fixed premium facilities are

not approved by these guarantee companies. Therefore it is important

to check this prior to trading to U.S. waters.

• DIVIDENDS - Some of the P&I Clubs pass back “dividends”, in the form

of premium returns or not calling budgeted supplementary calls in full to

the Membership if the Club has experienced a good underwriting year.

FIXED PREMIUM P&I INSURANCE EXPLAINED


17

FIXED PREMIUM P&I PROVIDERSThere are three “facility types” that offer fixed premium P&I insurance, as follows:

THE INTERNATIONAL GROUP OF P&I CLUBSAll of the International Group of P&I Clubs offer alternative fixed premium solutions for their clients. These may include non-pooled insurance products such as charterer’s liabilities, offshore P&I, contractual liabilities, specialist operations etc., however, some of the IG P&I Club managers can provide fixed premium P&I covers aimed at smaller tonnages on a limited liability basis.

INSURANCE COMPANIESInsurance companies are business entities that generally look at multiple lines of insurance, be it marine or non-marine related risks. Insurance companies that provide marine insurances typically can provide hull and machinery, cargo, ports and terminals, kidnap

and ransom covers etc. some of these companies also provide fixed cost P&I insurance. In the past some of the demutualised P&I facilities and managing general agents have been purchased by independent insurance companies.

MANAGING GENERAL AGENTS (MGA)An MGA is an individual or business entity appointed by an insurance company to conduct and arrange insurance contracts on their behalf. An MGA generally acts as a fronting company for the insurer, as well as providing the insured with evidence of cover within the defined underwriting authority. MGA’s also service policies and most importantly handle claims. Traditionally MGA’s were formed where insurance companies wanted to expand their markets, but did not have their own resources or technical knowledge to open and staff offices, therefore utilising the services of an MGA.

P&I MARKET FACILTY VARIATIONS

The following table identifies the current “facilities” that are able to provide fixed premium P&I insurance:

International Group P&I Club Insurance Company Managing General Agent

Gard OffshoreBritish Marine (a brand of QBE Europe)

Carina (Lloyds of London)

Japan Club Naiko (Coastal) Class Japan Club Gaiko (Ocean Going) Class

Navigators P&I (Navigators)

Charterama BV (Royal Sun Alliance)

North of England and Sunderland Marine

Ingosstrakh Insurance Co.Charterers P&I Club (Munich Re)

Shipowners P&I ClubRaetsmarine BV (Amlin Europe)

Eagle Ocean Marine (American Club)

Skuld P&I Club Rosgosstrakh LtdHanseatic P&I (Lloyds of London)

Standard P&I ClubHydor AS (Brit Syndicate)

Steamship Yacht FacilityLodestar Marine Ltd (Royal Sun Alliance)

Swedish Club OffshoreNorwegian Hull Club (Lloyds of London)

West of England P&I ClubOsprey Underwriting Agency (Lloyds of London)


18

MORE CAPACITY AND MORE COMPETITION THAN EVER BEFOREThe commercial P&I market has more than doubled in size since 2009, with seventeen non-IG P&I fixed premium and charterer’s liability specialist markets competing for business. With the over-supply of choice, we at AJG have observed P&I fixed rates reducing year on year, providing owners, operators and traders with an opportunity to reduce operating expenditure annually. In the last three years the market has seen more of the IG-P&I Clubs “awaken” in their attempts to diversify into this market sector, to increase revenues and free-reserves. In response to this change in appetite, the well-established commercial market facilities claim not to be intimidated by this change in stance, however they generally see it as an opportunity for the shipping community to become more aware of alternative P&I products and markets available.

The commercial market is still aimed at the smaller vessel operators, short-trade vessels, principally operating in coastal or inland waters typically within a tonnage range below 10,000 GT. Market facilities are available for vessels up to 40,000 gross tons (higher GT caps and limits are also available depending on the facility). For charterer’s liabilities, there are no vessel type or size restrictions among the specialist charterer’s liability facilities. Limits up to USD 1 Billion are available, however typically the larger limit of choice is USD 500

million, where the majority of assureds are usually insured below USD 50 Million. All fixed premium facilities target ship owners, operators, charterers and traders emanating from all geographical areas (subject to EU/US Sanctions), however certain facilities tend to shy away from passenger, cruise and U.S. flagged, trans-Atlantic and trans-Pacific business. Coverage for over-age and non-IACS classed tonnage is also available from the majority of fixed premium facilities.

WHY CHOOSE FIXED PREMIUM?We at Arthur J. Gallagher believe that some of the key advantages of insuring with a fixed premium insurer are that they can offer certainty of cost and lower, more accessible limits of liability, with no liabilities for unbudgeted supplementary calls or annual general increases. Not all of the alternative non-IG facilities offer fixed premium covers, some are mutual. In addition to this there are also exclusive charterer’s liability specialist insurers, which cater for charterers and traders. The fixed premium P&I market has continued to evolve considerably over the last five years, with more new entrants than exits from this industry sector. This is perhaps to be expected given the IG Group system’s workings and the competitive nature of the commercial market.

The following table provides a snapshot for the last five years market development:

COMMERICIAL P&I MARKET TODAY

ESTABLISHED MARKET (10yrs +)

INTERMEDIATE (5-10yrs)

NEW ENTRANT (<5yrs) SPECULATIVE MARKET EXIT

British Marine (QBE) (Est. 1876)

Norwegian Hull Club (Est. 2008)

Lodestar Marine Ltd (RSA) (Est. 2012)

London P&I Club Terra Nova Insurance Co. (2006)

Ingosstrakh (Est. 1974)

Charterama BV (RSA) (Est. 2009)

India Ocean P&I Club (Est. 2013)

UK P&I Club Axa Corporate Solutions(2008)

China P&I Club (Est. 1984)

Hydor (Brit Syndicate) (Est. 2009)

Carina – Tindal Riley (Est. 2013)

InterCoastal Shipowners BV (2011)

Charterers P&I Club (Munich Re) (Est. 1986)

Eagle Ocean Marine (Est. 2010)

Skuld P&I Club (Fixed) (Est. 2013)

South of England Mutual (2011)

Osprey Underwriting Agency (Est. 1991)

Rosgosstrakh P&I (Est. 2010)

North Group (Sunderland Marine Merger) (Est. 2014)

Ceylon P&I Club(2012)

Raetsmarine BV (Amlin) (Est. 1993)

Standard Club Fixed Facility (Est. 2014)

HEMPIRA (2014, due to consolidation with Aigaion)

Korea P&I Club (Est. 2000)

Navigators P&I (Est. 2004)

Hanseatic P&I (Est. 2005)

NON-IG MARKET DEVELOPMENT (YEARS 2009 – 2015)


19

COMMERCIAL P&I MARKET NEWS – REVIEW OF THE LAST 12 MONTHS

2014

2015

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.

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 Lodestar announce ability to offer coverage up to Panamax size vessels (40,000GT/75,000 DWT)

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

RaetsMarine BV announce their ability to offer USD 1 Billion limit of liability

Jason Riley joins as the International Head of Navigators P&I

MARCH Lodestar Post Renewal Report: “Pleasingly the hard work has once again paid off with premium retention exceeding 97%. We’ve also welcomed 36 new Assureds and 213 new vessels, pushing us over the 2,000 insured vessels mark for the first time.”

APRIL Hanseatic Underwriters changed to a 100% Lloyd’s of London consortium.

MAY –

JUNE The Norwegian Hull Club is upgraded by the Standard & Poor’s (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 Lloyd’s. We at AJG do not expect to see any major changes at RaetsMairne.


20

COMMERCIAL P&I MARKET OVERVIEW

FACILITY CARRIER ANNUAL PREMIUM INCOME 2014 (USD)

TONNAGE/VESSELS INSURED

AVERAGE RATE PER GT/ PER VESSEL

MAXIMUM LIMIT

MAX SIZE VESSEL COVER AMENDMENTS IN 2014

LOCATION

BRITISH MARINE QBE Insurance (Europe) Ltd

S&P: A+

US$ 97,500,000 10,600,000 GT US$ 9.20 PGT 7,300 VSL

US$ 1 Billion No Cap. However focus on small & medium GT

LONDON, UK

RAETSMARINE BV Amlin Europe N.V.

S&P: A+

US$ 52,500,000 (P&I) US$ 26,000,000 (CL)

15,500,000 GT US$ 3.39 PGT US$ 1 Billion <40,000 GT Limit increased to USD 1B from USD500M.

ROTTERDAM, NL

KOREAN P&I CLUB Mutual Insurance Company

AMB: A-

US$ 32,323,000 21,090,000 GT US$ 1.533 PGT US$ 1 Billion No limit SEOUL, KOREA

LODESTAR LTD Royal Sun Alliance

S&P: A

US$ 30,000,000 3,500,518 GT US$ 8.57 PGT US$ 1 Billion <40,000 GT Non-Tanker <10,000 GT Tanker

Limit change from USD 500M to USD 1B

LONDON, UK

CHARTERERS P&I Great Lakes/ Munich Re

S&P: AA-

US$ 28,300,000 12,200 VSL US$ 2,320 PV US$ 500 Million No limit LONDON, UK

OSPREY Lloyds of London

S&P: A+

US$ 27,500,000 2,100 VSL US$ 13,095 PV US$ 500,000 Million

<25,000 GT – Non-Tank <10,000 GT - Tankers

LONDON, UK

HANSEATIC P&I Insurance Consortium – See Page 72.

S&P: Various A Rated

US$ 19,500,000 (P&I) US$ 1,350,000 (CL)

2,850,000 GT US$ 6.842 PGT US$ 500 Million <30,000 GT Bulkers <20,000 GT Tankers

N/A HAMBURG, GERMANY

NAVIGATORS P&I Navigators Insurance Co.

S&P: A

US$ 20,000,000 1,900,000 GT US$ 10.53 PGT US$ 1 Billion <10,000 GT Limit increased to USD 1B from USD500M.

LONDON, UK

INGOSSTRAKH Ingosstrakh

S&P: BBB-

US$ 16,500,000 4,200,000 GT US$ 3.93 PGT US$ 1 Billion <10,000 GT MOSCOW, RUSSIA

HYDOR A/S Lloyds of London (Brit Syndicate 2987)

S&P: A+

US$ 14,000,000 1,657,000 GT US$ 8.45 PGT US$ 1 Billion 25,000 GT Limit increased to USD 1B from USD500M.

BERGEN, NORWAY

CHARTERAMA BV Royal Sun Alliance

S&P: A

US$ 10,500,000 10,500 VSL US$ 1,000 PV US$ 350 Million No limit Limit change from USD 150M to USD 350M

ROTTERDAM, NL

CARINA Lloyds of London

S&P: A+

US$ 10,000,000 3,000,000 GT 4,825 VSL

US$ 3.33 PGT US$ 500 Million <5,000 GT LONDON, UK

NORWEGIAN HULL CLUB Norwegian Hull Club

S&P: A

US$ 9,000,000 1,557 VSL US$ 5,780 PV US$ 500 Million No Limit Limit increased to USD 500M. S&P A Rated.

OSLO, NORWAY

EAGLE OCEAN MARINE American Club

S&P: BBB-

US$ 7,000,000 898,000 GT US$ 7.795 PGT US$ 500 Million <12,500 GT Increase in vessel GT covered

NEW YORK, USA

ROSGOSSTRAKH LTD Rosgosstrakh Ltd Local

Rating: BB-/RU AA

US$ 6,200,000 2,044,000 GT US$ 3.033 PGT US$ 500 Million Tankers <8,500 GT All others <25,000 GT

MOSCOW, RUSSIA


21

FACILITY CARRIER ANNUAL PREMIUM INCOME 2014 (USD)

TONNAGE/VESSELS INSURED

AVERAGE RATE PER GT/ PER VESSEL

MAXIMUM LIMIT

MAX SIZE VESSEL COVER AMENDMENTS IN 2014

LOCATION

BRITISH MARINE QBE Insurance (Europe) Ltd

S&P: A+

US$ 97,500,000 10,600,000 GT US$ 9.20 PGT 7,300 VSL

US$ 1 Billion No Cap. However focus on small & medium GT

LONDON, UK

RAETSMARINE BV Amlin Europe N.V.

S&P: A+

US$ 52,500,000 (P&I) US$ 26,000,000 (CL)

15,500,000 GT US$ 3.39 PGT US$ 1 Billion <40,000 GT Limit increased to USD 1B from USD500M.

ROTTERDAM, NL

KOREAN P&I CLUB Mutual Insurance Company

AMB: A-

US$ 32,323,000 21,090,000 GT US$ 1.533 PGT US$ 1 Billion No limit SEOUL, KOREA

LODESTAR LTD Royal Sun Alliance

S&P: A

US$ 30,000,000 3,500,518 GT US$ 8.57 PGT US$ 1 Billion <40,000 GT Non-Tanker <10,000 GT Tanker

Limit change from USD 500M to USD 1B

LONDON, UK

CHARTERERS P&I Great Lakes/ Munich Re

S&P: AA-

US$ 28,300,000 12,200 VSL US$ 2,320 PV US$ 500 Million No limit LONDON, UK

OSPREY Lloyds of London

S&P: A+

US$ 27,500,000 2,100 VSL US$ 13,095 PV US$ 500,000 Million

<25,000 GT – Non-Tank <10,000 GT - Tankers

LONDON, UK

HANSEATIC P&I Insurance Consortium – See Page 72.

S&P: Various A Rated

US$ 19,500,000 (P&I) US$ 1,350,000 (CL)

2,850,000 GT US$ 6.842 PGT US$ 500 Million <30,000 GT Bulkers <20,000 GT Tankers

N/A HAMBURG, GERMANY

NAVIGATORS P&I Navigators Insurance Co.

S&P: A

US$ 20,000,000 1,900,000 GT US$ 10.53 PGT US$ 1 Billion <10,000 GT Limit increased to USD 1B from USD500M.

LONDON, UK

INGOSSTRAKH Ingosstrakh

S&P: BBB-

US$ 16,500,000 4,200,000 GT US$ 3.93 PGT US$ 1 Billion <10,000 GT MOSCOW, RUSSIA

HYDOR A/S Lloyds of London (Brit Syndicate 2987)

S&P: A+

US$ 14,000,000 1,657,000 GT US$ 8.45 PGT US$ 1 Billion 25,000 GT Limit increased to USD 1B from USD500M.

BERGEN, NORWAY

CHARTERAMA BV Royal Sun Alliance

S&P: A

US$ 10,500,000 10,500 VSL US$ 1,000 PV US$ 350 Million No limit Limit change from USD 150M to USD 350M

ROTTERDAM, NL

CARINA Lloyds of London

S&P: A+

US$ 10,000,000 3,000,000 GT 4,825 VSL

US$ 3.33 PGT US$ 500 Million <5,000 GT LONDON, UK

NORWEGIAN HULL CLUB Norwegian Hull Club

S&P: A

US$ 9,000,000 1,557 VSL US$ 5,780 PV US$ 500 Million No Limit Limit increased to USD 500M. S&P A Rated.

OSLO, NORWAY

EAGLE OCEAN MARINE American Club

S&P: BBB-

US$ 7,000,000 898,000 GT US$ 7.795 PGT US$ 500 Million <12,500 GT Increase in vessel GT covered

NEW YORK, USA

ROSGOSSTRAKH LTD Rosgosstrakh Ltd Local

Rating: BB-/RU AA

US$ 6,200,000 2,044,000 GT US$ 3.033 PGT US$ 500 Million Tankers <8,500 GT All others <25,000 GT

MOSCOW, RUSSIA

The information contained in the Arthur J. Gallagher P&I facts and figures pages has been compiled by the various insurance providers contained in this report. As part of our assessment in choosing an appropriate fixed premium insurer(s) for our clients, amongst other key factors such as claims service, pricing, flexibility etc. AJG also considers the following parameters as essential indicators in the selection process. Reinsurance Carrier: The underlying security or insurance company providing the market capacity. Standard and Poor’s (S&P) Rating: Arthur J. Gallagher operates a market security policy which sets a minimum standard for insurance markets which can be included on its acceptable market security list. A number of criteria are utilised to evaluate the financial condition of these markets and one of the criteria used is the ratings allocated by either Standard & Poor’s (S&P) or A M Best. The AJG (UK) security policy sets a minimum rating level of A- from these agencies as an indicator of acceptable security. See Page 70 for more information on this policy. The specified rating attached to each facility is a credit rating based on S&P’s independent opinion regarding the ability of an issuer, corporation or association to meet its financial obligations. Such ratings are provided by organisations such as S&P and AM Best, also known as credit rating agencies. Each organisation applies its own merits in measuring credit and use a rating scale to publish their individual findings. Ratings are expressed as a letter grade for example AAA being the highest level.

Maximum Limit of Liability Available: It is very common to see a limit of liability in insurance contracts, which stipulate limitations on the maximum amount payable under the contract. Further, the cost of defence, supplementary payments, and punitive damages may or may not be paid in addition to the limits. Separate limits often apply to claims for pollution and/or passenger or seamen claims. An annual aggregate limit may also be offered, which puts a maximum on the amount an insurer must pay in any one policy period.

Vessel Type/ Size (GT) Cap: This is the maximum size (gross ton) of vessel that can be insured by the facility.

Facility Location(s): The primary business location of the facility and various support and claims offices available. Local claims liaison offices are important to ensure that clients in different time zones can access claims or loss prevention assistance in a timely manner.

Geographical Spread of Business: This is an indicator to show where business revenues derive from a geographical overview.

Type of Entered Vessel: This indicator demonstrates what type of vessel a facility tends to write.

Annual Premium Income, Gross Tonnage and Premium Per GT Development Indicators: AJG analyses three key performance indicators over a twelve month period to determine a financial year result. Historical information can be in the industry statistic pages 54-69.

INTRODUCTION TO FACTS & FIGURES


02


24

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 Marine’s 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 charterer’s 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 Charterer’s Liability side, limits for P&I are available up to USD 100 million with Charterer’s Damage to Hull being limited up to USD 50 million. There is however a guideline tonnage maximum level of 30,000 GT.

BRITISH MARINE SAYS“The proliferation of fixed premium providers following the British Marine business model has gathered pace and a number of new P&I facilities surfaced during 2013 to compete in the small and medium-sized ships sector. British Marine’s renewing business, and other tonnage within our appetite considering a change of insurer was strongly contested and, with most ship owners continuing to experience difficult trading conditions, price was often a decisive consideration. We were well satisfied with a successful renewal. Business retention was at its long-term historical level, with overall renewing premium flat. We were disappointed not to renew the cover for a number of owners, predominantly because we considered that the competitive terms we were asked to match in order to retain the business were unsustainable. We welcomed 32 new Assureds, and 10 existing Assureds added tonnage to their British Marine placement. In all, a further 194 vessels and 680,000 GT was introduced. Pleasingly, among our new Assureds were two large fleets and a number of small operations which returned to British Marine following an interlude insured elsewhere.”

GEOGRAPHICAL SPREAD OF BUSINESS TYPE OF ENTERED VESSEL

BRITISH MARINEwww.britishmarine.com

Reinsurance Carrier: QBE Insurance (Europe) LtdStandard and Poor’s Rating: A+

Maximum Limit Offered: USD 1 BillionVessel Type/ Size Cap: Up to 10,000 GT and Charterers up to 30,000 GT

Facility Location: London, United Kingdom

34% Northern Europe

12% North America

19% Far East

13% Southern

Europe

11% Middle East

5% South America

3% Australia

3% Africa

23% General Cargo

28% Others

22%Bulkers

8%Tugs & Barges

8%Fishing

7%Tankers

3% Yatchs

1% Dredgers


25

Policy Year: 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

OWNED P&I PREMIUM INCOME USD

Policy Year: 2008 2009 2010 2011 2012 2013 2014

Gross Tonnage 11,000,000 13,500,000 13,520,000 12,600,000 12,000,000 11,000,000 10,000,000

ENTERED GROSS TONNAGE USD

150,000,000

100,000,000

50,000,000

0

TONNAGE DEVELOPMENT

20

08

20

09

20

10

20

11

20

12

20

13

20

14

PREMIUM INCOME (US$)2013 PY: 100,000,0002014 PY: 97,500,000

GROSS TONNAGE (GT)2013 PY: 11,000,0002014 PY: 10,000,000

AVERAGE RATE PER GT (PGT)2013 PY: US$ 9.092014 PY: US$ 9.20

TWELVE MONTH DEVELOPMENT PERFORMANCE INDICATORS

+1.2%-2.5% -9.1%

120%

100%

80%

60%

40%

20%

0%P&I

BUSINESS PORTFOLIO SPREAD

10.50

10.00

9.50

9.00

8.50

8.00

7.50

AVERAGE RATE PER GT

20

08

20

09

20

10

20

11

20

12

20

13

20

14

130,000,000

120,000,000

110,000,000

100,000,000

90,000,000

80,000,000

P&I PREMIUM INCOME

20

08

20

09

20

10

20

11

20

12

20

13

20

14


26

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.

The focus of the facility targets small ship sector operators only. Legal Defence Cover is also available together with additional ancillary covers that may be required. Carina will benefit from Tindall Riley Marine Limited’s vast experience in underwriting, claims and support services. Carina’s polices are backed by Lloyd’s of London syndicates, which hold an S&P A+ rating.

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 insured’s adding to their existing fleets and new insured’s 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 Lloyd’s.

The vast majority of shipowners insured by Carina trade regionally. Around 75% of insured ships are below 500 g.t.; most of these ships are harbour craft or operate in inland waterways.

We are very pleased with Carina’s excellent renewal retention rates in a market that is extremely competitive. Our aim continues to be the provision of a first class service to insured’s and their brokers.”

CARINAwww.carinapandi.com

Reinsurance Carrier: Lloyd’s of London Standard and Poor’s Rating: A+

Maximum Limit Offered: Up to USD 500 MillionVessel Type/ Size Cap: Up to 5,000 GT



4% Tug

2% Fishing

4% Passenger

9% Tankers

4% General Cargo

75% Barges

2% Others7%

South America 4% Northern Europe

58% Southern Europe

26% Far East

5% Russia & Ukraine


27

Policy Year: 2011 2012 2013 2014

P&I Premium Income – – 7,250,000 10,000,000

PREMIUM INCOME DEVELOPMENT USD

Policy Year: 2011 2012 2013 2014

Gross Tonnage – – 2,000,000 3,000,000

GROSS TONNAGE DEVELOPMENT USD

3,500,000

3,000,000

2,500,000

2,000,000

1,500,000

1,000,000

500,000

0

GROSS TONNAGE

20

13

20

14



AVERAGE RATE PER GT (PGT)2013 PY: 3.622014 PY: 3.33


+50% +8%+37.9%

11,000,000

10,500,000

10,000,000

9,500,000

9,000,000

8,500,000

8,000,000

7,500,000

7,000,000

6,500,000

6,000,000

P&I PREMIUM INCOME

20

13

20

14

3.70

3.60

3.50

3.40

3.30

3.20

AVERAGE RATE PER GT

20

13

20

14


120%

100%

80%

60%

40%

20%

0%P&I


28

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. The agency re-structured its insurance and reinsurance arrangements, with American Steamship Owners Mutual Protection and Indemnity Association, Inc. providing the primary security. This in turn will allow Eagle Ocean to put up American Club security guarantees up to its primary limits, as well as providing American Club blue cards.

EAGLE OCEAN MARINE SAYS“EOM continues to make steady progress. The market remains soft, not assisted by the continued increase in capacity and the weak freight market. Fixed price P&I insurance appeals to an increasingly large number of operators who like the certainty of cost and who are now attracted to the higher limits of liability on offer. Since February 2015 EOM has increased its capacity to offer cover up to $ 500m. This gives EOM the ability to compete for accounts requiring higher limits. The drive for higher limits is primarily fuelled by commercial pressure placed on ship operators by their contracting partners. The outlook for the fixed premium facilities remains bright and EOM is well placed to compete in what remains a challenging market. EOM remains fully committed to providing a first class product at sustainable rates.”

EAGLE OCEAN MARINEwww.eagleoceanmarine.com

Reinsurance Carrier: American P&I Club Standard and Poor’s Rating: BBB-

Maximum Limit Offered: Up to USD 500 Million Vessel Type/ Size Cap: Up to 25,000 GT

Facility Location: New York, United States of America


6% South America

6% Southern Europe

70% Far East

15% Africa

3% Middle East

5%Others

32% Tugs & Barges

10% Tankers

35%General Cargo

10%Bulkers

7%Containers

1% Fishing


29

Policy Year: 2010 2011 2012 2013 2014

P&I Premium Income 500,000 5,000,000 6,000,000 6,500,000 7,000,000P&I Claims Incurred 50,000 3,000,000 5,500,000 1,000,000 800,000


Policy Year: 2010 2011 2012 2013 2014

Gross Tonnage 50,000 461,000 601,000 760,000 898,000


120%

100%

80%

60%

40%

20%

0%P&I FD&D


1,000,000

800,000

600,000

400,000

200,000

0

TONNAGE DEVELOPMENT

20

10

20

11

20

12

20

13

20

14


GROSS TONNAGE (GT)2013 PY: 760,0002014 PY: 898,000



+7.6% +18.2% –8.8%

8,000,000

6,000,000

4,000,000

2,000,000

0

P&I PREMIUM INCOME

20

10

20

11

20

12

20

13

20

14

12.00

11.00

10.00

9.00

8.00

AVERAGE RATE PER GT

20

10

20

11

20

13

20

14

20

12


30

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% Lloyd’s 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’’”.

HANSEATIC UNDERWRITERSwww.hanseatic_pandi.com

Reinsurance Carrier: Allianz Global Corporate & Speciality AG and Lloyds of London

Standard and Poor’s Rating: AA or A+ Maximum Limit Offered: Up to USD 500 Million

Vessel Type/ Size Cap: Up to 25,000 GT Facility Location: Hamburg, Germany


15%Containers

2% Others3% Offshore

1% Dredgers

3% Fishing1% Tankers

7% Tugs & Barges

22%Bulkers

46% General Cargo

45% Northern Europe

4% Australia

24% Southern

Europe

8% Middle East

14% Far East

5% South America


31

Policy Year: 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 19,650,000P&I Claims Incurred 7,900,000 7,200,000 12,900,000 14,700,000 13,700,000 8,700,000 8,250,000Surplus/ Deficit -200,000 4,000,000 1,800,000 1,100,000 6,000,000 9,600,000 11,400,000


Policy Year: 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 1,350,000Charterers Claims Incurred 1,800,000 700,000 200,000 150,000 170,000 154,000 355,000Surplus/ Deficit -600,000 150,000 700,000 800,000 830,000 1,046,000 995,000

CHARTERERS LIABILTIY INCOME USD

Policy Year: 2008 2009 2010 2011 2012 2013 2014

Gross Tonnage 1,400,000 1,600,000 1,900,000 2,100,000 2,400,000 2,700,000 2,850,000


90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

P&I FD&D H&MWarCharterers/ DTH

Ports & Terminals

SOL to Cargo

Other Risks


3,000,000

2,500,000

2,000,000

1,500,000

1,000,000

500,000

0

TONNAGE DEVELOPMENT

20

08

20

09

20

10

20

11

20

12

20

13

20

14





+7.4% +5.6% +1.6%

25,000,000

20,000,000

15,000,000

10,000,000

5,000,000

0

P&I PREMIUM INCOME

20

08

20

09

20

10

20

11

20

12

20

13

20

14

8.50

8.00

7.50

7.00

6.50

6.00

5.50

5.00

4.50

AVERAGE RATE PER GT

20

09

20

10

20

11

20

12

20

13

20

14

20

08


32

INTRODUCTION Established in 2010, Hydor is an underwriting agent on behalf of the Brit Syndicate 2987 (Lloyd’s of London) offering fixed premium Owner’s Protection & Indemnity, Charterer’s P&I, FD&D and other marine related insurance products. Hydor is licensed and regulated by the Financial Supervisory Authority (FSA) of Norway.

Through Lloyd’s of London the Brit Syndicate 2987 holds security ratings from Standard & Poor’s 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 Charterer’s 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.

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.”

HYDOR ASwww.hydor.no

Reinsurance Carrier: Brit Syndicate 2987 – Lloyds of London Standard and Poor’s Rating: A+

Maximum Limit Offered: USD 1 Billion Vessel Type/ Size Cap: Up to 25,000 GT, Unlimited for Charterers Liability

Facility Location: Oslo, Norway


17% Fishing

27% General Cargo

16%Bulkers

19%Containers

8%Tankers

5%Offshore

8% Tugs & Barges

65% Northern Europe

9% South America

8% Far East

3% Africa

3% Southern

Europe

1% Middle East

1% North America

10% Russia


33

Policy Year: 2011 2012 2013 2014

Gross Tonnage 1,000,000 1,200,000 1,300,000 1,657,000


150%

100%

50%

0%P&I


2,000,000

1,000,000

0%

TONNAGE DEVELOPMENT

20

11

20

12

20

13

20

14

Policy Year: 2011 2012 2013 2014

P&I Premium Income 2,000,000 5,000,000 9,000,000 14,000,000P&I Claims Incurred 250,000 750,000 6,000,000 5,000,000Surplus/ Deficit 1,750,000 4,250,000 3,000,000 9,000,000






+55% +27.5% +22.1%

15,000,000

10,000,000

5,000,000

0

P&I PREMIUM INCOME

20

12

20

13

20

14

20

11

10.00

8.00

6.00

4.00

2.00

0.00

AVERAGE RATE PER GT

20

11

20

12

20

13

20

14


34

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 & Poor’s and a National Scale rating of ruAA++.

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.”

INGOSSTRAKH INSURANCE CO.www.ingos.ru

Reinsurance Carrier: Lloyds of London Standard and Poor’s Rating: BBB-

Maximum Limit Offered: Up to USD 1 Billion Vessel Type/ Size Cap: No Limit, but 97% of

vessels covered are below 10,001 GT Facility Location: Moscow, Russia


2% Northern Europe

5% South America

1% Middle East

7% Southern Europe

32% Far East

53% Russia

3% Offshore

25% General Cargo

17% Tugs & Barges

27%Fishing

13%Others

11%Tankers

3% Dregers

2% Bulkers


35

Policy Year: 2008 2009 2010 2011 2012 2013 2014

P&I Premium Income 25,400,000 27,250,000 23,000,000 19,228,453 23,523,685 21,800,000 16,500,000P&I Claims Incurred 19,500,000 25,000,000 16,200,000 16,075,518 17,326,411 14,000,000 15,800,000


Policy Year: 2008 2009 2010 2011 2012 2013 2014

Gross Tonnage 7,895,016 5,879,400 6,024,524 4,730,800 5,001,155 5,001,155 4,200,000


10,000,000

8,000,000

6,000,000

4,000,000

2,000,000

0

TONNAGE DEVELOPMENT

20

08

20

09

20

10

20

11

20

12

20

13

20

14

120%

100%

80%

60%

40%

20%

0%Charterer/DTH FD&D P&I






–24.3% –16% –9.88%

30,000,000

25,000,000

20,000,000

15,000,000

P&I PREMIUM INCOME

20

08

20

09

20

10

20

11

20

12

20

13

20

14

5.00

4.50

4.00

3.50

3.00

AVERAGE RATE PER GT

2009

2010

2011

2012

2013

2014

2008


36

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 Artémis, 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.

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 can’t 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.”

LODESTAR LTDwww.lodestar-marine.com

Reinsurance Carrier: Royal Sun Alliance Group Standard and Poor’s Rating: A

Maximum Limit Offered: USD 1 Billion Vessel Type/ Size Cap: Up to 40,000 for non-tanker

vessels and up to 10,000 GT for tankers Facility Location: London, United Kingdom


43% Dry Cargo

7% Tankers

12%Offshore

19%Tugs & Barges

4% Yachts

4% Others

2% Dredgers

9% Fishing

23% Far East7%

Middle East

19% South

America

14% Northern

Europe

6% Africa

29% Southern Europe

1% Australia1% North America


37





–5.51%+20% +27%

Policy Year: 2008 2009 2010 2011 2012 2013 2014

P&I Premium Income - - - - 16,500,000 25,000,000 30,000,000


Policy Year: 2008 2009 2010 2011 2012 2013 2014

Gross Tonnage - - - - 1,777,512 2,756,154 3,500,518


40,000,000

30,000,000

20,000,000

10,000,000

0

P&I PREMIUM INCOME

20

11

20

12

20

13

20

14

9.50

9.00

8.50

8.00

AVERAGE RATE PER GT

20

12

20

13

20

14

100%

80%

60%

40%

20%

0%


Other Risks FD&DCharterers/DTH P&I

4,000,000

3,000,000

2,000,000

1,000,000

0

TONNAGE DEVELOPMENT

20

12

20

13

20

14


38

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 Owner’s P&I, Navigators can also offer contractual liabilities as an extension of the main P&I coverage. Charterer’s 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 company’s 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 growth’s sake’, we will prevail as one of the stronger Fixed Premium providers.”

NAVIGATORS P&Iwww.navpandi.com

Reinsurance Carrier: Navigators Insurance Company Standard and Poor’s Rating: A

Maximum Limit Offered: Up to US$ 1 Billion Vessel Type/ Size Cap: Up to 10,000 GT



31% General Cargo

44% Tugs & Barges

4% Bulker

6% Tankers

10% Fishing

2% Container

3% Others

10% Europe

51% Far East

15% North America

8% South America

16% Other


39

Policy Year: 2008 2009 2010 2011 2012 2013 2014



Policy Year: 2008 2009 2010 2011 2012 2013 2014

Gross Tonnage 2,450,000 2,300,000 2,100,000 2,200,000 2,100,000 2,000,000 1,900,000


120%

100%

80%

60%

40%

20%

0%P&I


3,000,000

2,500,000

2,000,000

1,500,000

1,000,000

500,000

0

TONNAGE DEVELOPMENT

20

08

20

09

20

10

20

11

20

12

20

13

20

14





–0.5% –1.8%–6.6%

12.00

11.50

11.00

10.50

10.00

9.50

AVERAGE RATE PER GT

20

08

20

09

20

10

20

11

20

12

20

13

20

14

29,000,000

28,000,000

27,000,000

26,000,000

25,000,000

24,000,000

23,000,000

22,000,000

21,000,000

20,000,000

P&I PREMIUM INCOME

20

08

20

09

20

10

20

11

20

12

20

13

20

14


40

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 Lloyd’s 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

our account. We are fortunate to have the backing of our Lloyds’ Syndicate support firmly behind our longer term aims and ambitions. Fortunate also to be unique in the market as a Lloyds’ Cover Holder offering the excellent A+ rated security and a name that is recognised worldwide. In addition to P&I, the Agency continues to offer P&I war risks, Hull & Machinery to USD5m value, Marine General Liability and Maritime Employers liability coverage. We offer an MLC financial guarantee product that is already compliant with the proposed amendments due to be implemented by December 2016 as well as the provision of ‘Blue Cards’ that Owners are required to provide in respect of Wreck Removal and Bunker Pollution conventions, all secured by Lloyds’. In the US we have continued to reduce our market share in the fish boat account due to the performance of certain sectors of the industry, though it still remains a significant proportion of our US business. We of course also have the benefit of a Claims Service office in the U.S. providing dedicated ‘local’ claims support to all of Osprey’s U.S. Clients and also those who may visit/trade to the U.S. Our US account remains the most significant part of our overall account, which does set us apart from our fixed premium peers and allows Osprey to offer a truly worldwide spread of account. Market conditions remain soft across all classes and we continue to see what we perceive as unsustainable premium rating for long term commercial success in certain sectors.”

OSPREY UNDERWRITING AGENCY LTDwww.special-risks.co.uk

Reinsurance Carrier: Lloyds of London (various syndicates) Standard and Poor’s Rating: A+

Maximum Limit Offered: Up to US$ 500 Million Vessel Type/ Size Cap: Up to 25,000 GT (dry bulk)

and 10,000 GT all other vessel types Facility Location: London, United Kingdom


6% Europe

6% South America 54%

North America

32% Asia/

Middle East

2% Other

40% Tugs & Barges

16% Fishing

18% Offshore

24% Others

2% General Cargo


41


GROSS TONNAGE (GT)2013 PY: 1,8002014 PY: 2,100

AVERAGE RATE PER GT (PGT)2013 PY: 16,6672014 PY: 13,095


–26.5%–21.8% +6.3%

Policy Year: 2008 2009 2010 2011 2012 2013 2014



Policy Year: 2008 2009 2010 2011 2012 2013 2014

Number of Vessels On-Risk 2,350 2,660 2,849 3,095 2,450 1800 2100

VOLUME OF BUSINESS UNDERWRITTEN USD

4,000

3,000

2,000

1,000

0

VOLUME OF BUSINESS UNDERWRITTEN

20

08

20

09

20

10

20

11

20

12

20

13

20

14

50,000,000

45,000,000

40,000,000

35,000,000

30,000,000

25,000,000

P&I PREMIUM INCOME

20

08

20

09

20

10

20

11

20

12

20

13

20

14

18,000

17,000

16,000

15,000

14,000

13,000

AVERAGE PREMIUM PER VSL

20

08

20

09

20

10

20

11

20

12

20

13

20

14

100%

80%

60%

40%

20%

0%H&M Other Risks P&I



42

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, NVOCC’s 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 Lloyd’s, where RaetsMarine writes on the Amlin Syndicate 2001 which is A+ rated by S&P.

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

diversification of some members of the International Group into fixed premium. The question to be answered in the near future is how the members of these Clubs will react on the fixed premium placements within these Clubs. IG Clubs will have to come up with an explanation why some are in the mutuality and others are fixed premium as they are servicing both markets. Our clients are facing a difficult economic environment and an increasing complexity of marine risks. This next to the increasing limits on conventions and the increasing cost of casualties. Our solution to that is to work closely together with our clients on risk management and tailor-made insurance solutions in order to keep the insurance cost as low as possible and at the same time give our clients seamless cover. Despite pressure on the rates and increased competition we see plenty of opportunities of growing in our markets as clients are looking for service and solutions to their problems. RaetsMarine will continue to develop new products and tailor-made solutions, together with our service proposition to our clients. This has always been the approach of RaetsMarine and is in our DNA. This approach has proven to be rewarded by our clients and is reflected by high retention rates.”

RAETSMARINE BVwww.raetsmarine.com

Reinsurance Carrier: Amlin Europe N.V. Standard and Poor’s Rating: A-

Maximum Limit Offered: Up to US$ 1 Billion Vessel Type/ Size Cap: Up to 40,000 GT. Unlimited for Charterers Liability

Facility Location: Rotterdam, Netherlands





–2.3%+0.9% +0.02%


1% North America

46% Europe

34% Far East

5% Middle East

5% South America

1% Russia & CIS

2% Africa

20%Bulkers

2% Offshore

19% General Cargo

29% Others

17%Tugs & Barges

6% Tankers

1% Containers3% Fishing

1% Dredgers2% Yatchs


43

20,000,000

15,000,000

10,000,000

5,000,000

0

TONNAGE DEVELOPMENT

20

08

20

09

20

10

20

11

20

12

20

13

20

14

70%

60%

50%

40%

30%

20%

10%

0%

P&I

FD&

D

WarPo

rts

& T

erm

inal

s

Cha

rter

ers/

DTH

SOL

to C

argo


Policy Year: 2008 2009 2010 2011 2012 2013 2014

P&I Premium Income 28,600,000 35,500,000 36,400,000 51,700,000 50,000,000 52,000,000 52,500,000P&I Claims Incurred 11,553,523 11,074,573 12,290,837 25,766,775 18,892,617 18,214,323 21,638,190Surplus/ Deficit 17,046,477 24,425,427 24,109,163 25,933,225 31,107,383 33,785,677 30,861,810


Policy Year: 2008 2009 2010 2011 2012 2013 2014

P&I Premium Income 24,500,000 24,500,000 26,000,000 25,700,000 27,000,000 25,500,000 26,000,000P&I Claims Incurred 11,298,008 8,678,617 12,661,622 10,028,183 11,144,971 8,357,932 7,226,730Surplus/ Deficit 13,201,992 15,821,383 13,338,378 15,671,817 15,855,029 17,142,068 18,773,270

CHARTERERS PREMIUM INCOME USD

Policy Year: 2008 2009 2010 2011 2012 2013 2014

Gross Tonnage 5,298,502 12,178,942 11,390,104 16,262,048 15,806,600 15,366,000 15,500,000

ENTERED GROSS TONNAGE (SO ONLY) USD

Policy Year: 2008 2009 2010 2011 2012 2013 2014

# vessels 18,061 22,371 23,783 23,000 21,000 21,500

NO. CHARTERER VESSELS INSURED USD

57,000,000

52,000,000

47,000,000

42,000,000

37,000,000

32,000,000

27,000,000

22,000,000

P&I PREMIUM INCOME

20

08

20

09

20

10

20

11

20

12

20

13

20

14

28,000,000

27,000,000

26,000,000

25,000,000

24,000,000

23,000,000

CL PREMIUM INCOME

20

09

20

10

20

11

20

12

20

13

20

14

5.80

4.80

3.80

2.80

1.80

AVERAGE RATE PER GT

20

08

20

09

20

10

20

11

20

12

20

13

20

14

1,400.00

1,300.00

1,200.00

1,100.00

1,000.00

AVERAGE PREMIUM PER VSL2

00

9

20

10

20

11

20

12

20

13

20

14

25,000

20,000

15,000

10,000

5,000

0

VESSELS ON RISK (CL ONLY)

20

14

20

09

20

10

20

11

20

12

20

13


44

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.

ROSGOSSTRAKH LTD SAYS“We see the ongoing competition among fixed-premium providers, specifically after new facilities were launched and softened the market in terms of premium rates. This however doesn’t affect our book as we feel strong being a niche player, while being first choice Insurer for the Russian shipowners. During the past year we kept growing our P&I book and strengthened our position in the Russian market. RGS today is the leading P&I insurance provider with the largest share for inland Russian fleets and a growing portfolio for FSU clients.

I would expect no further growth in number of P&I providers, not counting those IG Clubs who have not yet launched their fixed premium facility. In regards to the Russian marine insurance market, we feel, there will be fewer number of players in the next couple of years. It is becoming more difficult however to keep the level of premium rates within overall decline in the shipping industry.”

ROSGOSSTRAKH LTDwww.rgs.ru

Reinsurance Carrier: Reinsurance Treaty Standard and Poor’s Rating: BB-/RuAA (P&I Reinsurance Treaty A+)

Maximum Limit Offered: Up to USD 500 Million Vessel Type/ Size Cap: Tankers up to 8,500 GT and All other vessels up to 25,000 GT

Facility Location: Moscow, Russia


86% Russia

7% Southern Europe

2% Middle East

1% Far East 4% Northern Europe

33% Tankers

23% General Cargo

22%Others

6%Fishing

2% Dredgers

1% Offshore

12% Tugs & Barges

1% Bulkers


45

Policy Year: 2008 2009 2010 2011 2012 2013 2014

P&I Premium Income 744,480 1,943,532 3,286,643 3,885,055 4,008,499 4,800,000 6,200,000P&I Claims Incurred 101,532 274,745 195,519 2,090,796 975,731 1,366,700 1,207,000Surplus/ Deficit 642,948 1,668,787 3,091,124 1,794,259 3,032,768 3,433,300 4,993,000


Policy Year: 2008 2009 2010 2011 2012 2013 2014

Gross Tonnage 235,258 562,170 1,038,500 1,055,019 1,002,000 1,424,486 2,044,800


120%

100%

80%

60%

40%

20%

0%P&I Charterers/DTH


2,500,000

2,000,000

1,500,000

1,000,000

500,000

0

TONNAGE DEVELOPMENT

20

08

20

09

20

10

20

11

20

12

20

13

20

14





+29.1% +43.5% –10.1%

8,000,000

6,000,000

4,000,000

2,000,000

0

P&I PREMIUM INCOME

20

08

20

09

20

10

20

11

20

12

20

13

20

14

4.500

4.000

3.500

3.000

AVERAGE RATE PER GT

20

08

20

09

20

10

20

11

20

12

20

13

20

14


46

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 Lloyd’s 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.

KOREAN P&I CLUB SAYS“In our view, the biggest challenge in the P&I market sector is increasing size of the marine accident, in particular wreck removal or oil pollution clean-up costs to which limit of shipowners’ liability regime is not applied. Also, there was the Sewol ferry incident last year which triggers our high attention to substantial safety issues. Actually, safety recognition of people and the industry in Korea has improved a lot. About 70 laws related to maritime industry were revised and laws related to safety have been strengthened enormously.

In Korean market, Korean shipowners sold many aged small and middle sized vessels of which P&I premium are high and limitedly purchased newly built large sized vessels. There have been fierce price competitions for newly purchased vessels. Facing the cramped domestic market environment, we are going to extend KP&I’s membership in Asia and greatly looking forward to overseas markets to secure future growth, and accomplish the vision “Acceptable to the world”. So far, 48 vessels from China, Taiwan, Vietnam, Indonesia, UAE, and Singapore have been entered to KP&I. Partnerships with foreign insurance companies would bring us to achieve a remarkable growth and we will not stop continuing to try to become a reliable partner of Global Shipping Industry.”

KOREAN SHIPOWNERS MUTUAL P&I www.kpiclub.or.kr

Reinsurance Carrier: Lloyds of London, Korean Re and Kuwait Re Standard and Poor’s Rating: A- (excellent)

Maximum Limit Offered: USD 1 Billion Vessel Type/ Size Cap: No Limit Facility Location: Seoul, Korea


22% Bulkers

16% Fishing

21%Others

13%General

Cargo

11%Containers

8%Tankers

9% Tugs & Barges

0.2% Middle East

99.8% Far East


47

TONNAGE DEVELOPMENT

25,000,000

20,000,000

15,000,000

10,000,000

5,000,000

0 20

08

20

09

20

10

20

11

20

12

20

13

20

14

120%

100%

80%

60%

40%

20%

0%FD&D P&ICharterers/DTH


Policy Year: 2008 2009 2010 2011 2012 2013 2014

P&I Premium Income 13,248,000 19,509,000 26,002,000 28,894,000 29,653,000 32,119,000 31,323,000 P&I Claims Incurred 7,734,000 10,619,000 10,477,000 20,161,000 15,715,000 19,705,000 23,632,000 Surplus/ Deficit 5,514,000 8,890,000 15,525,000 8,733,000 13,938,000 12,414,000 7,691,000


Policy Year: 2008 2009 2010 2011 2012 2013 2014

Gross Tonnage 4,996,000 7,338,000 8,685,000 10,007,000 11,043,000 18,192,000 21,090,000






+2.2% +15.9% –11.9%

40,000,000

30,000,000

20,000,000

10,000,000

0

P&I PREMIUM INCOME

20

08

20

09

20

10

20

11

20

12

20

13

20

14

3.00

2.00

1.00

0.00

AVERAGE RATE PER GT

20

08

20

09

20

10

20

11

20

12

20

13

20

14


48

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 Poor’s 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.

CHARTERAMA BV SAYS“Service and knowledge/experience: our main strengths. Despite a highly competitive market we are glad to attract quality clients, who’s choice is not driven by price only. We take our clients serious and we get respect in return. Also the combination of having an office in Hong Kong, the strong security of RSA and our increased limits contributed to being a recognized provider in the higher segment of the charterers liability market with top end operators/traders amongst our clients.”

CHARTERAMA BVwww.charterama.com

Reinsurance Carrier: Royal Sun Alliance Standard and Poor’s Rating: A

Maximum Limit Offered: Up to USD 350 Million Vessel Type/ Size Cap: No restrictions

Facility Location: Rotterdam, Netherlands


81% Europe

12% Far East

5% North America

2% Middle East

1% Australia

47% Bulkers

30%General

Cargo

18% Tankers

2% Containers

1% Tugs & Barges 2% Others


49

Policy Year: 2009 2010 2011 2012 2013 2014

Charterers Premium Income 3,000,000 5,000,000 6,000,000 8,000,000 9,500,000 10,500,000


Policy Year: 2009 2010 2011 2012 2013 2014

No. Vessels 2,500 4,000 5,800 8,300 10,000 10,500


12,000

10,000

8,000

6,000

4,000

2,000

0

TONNAGE DEVELOPMENT

20

09

20

10

20

11

20

12

20

13

20

14

80%

60%

40%

20%

0%


FD&D WarCharterers/DTH Other Risks


NO OF VESSELS INSURED2013 PY: 10,0002014 PY: 10,500

AVG PREMIUM PER VSL (US$)2013 PY: 9502014 PY: 1,000


+16% +5% +5.2%

12,000,000

10,000,000

8,000,000

6,000,000

4,000,000

2,000,000

0

P&I PREMIUM INCOME

20

09

20

10

20

11

20

12

20

13

20

14

1,300

1,200

1,100

1,00

900

AVERAGE RATE PER GT

20

09

20

10

20

11

20

12

20

14

20

13


50

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 charterer’s liability and up to USD 5 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.

CHARTERERS P&I CLUB SAYS“Despite an intensively competitive market and a persistent downturn in the shipping industry, the Charterers P&I Club goes from strength to strength and is expecting to grow by over 20% by the end of 2015. The Club has strongly defined USPs, its policies are underwritten 100% by the Munich Re Group with an S&P rating of AA- and Michael Else and Company enjoys an excellent reputation for professionalism and service. The Charterers P&I Club is the largest and most well-resourced specialist in the Charterers market. Its success lies in the quality of the product and the scale and depth of experience of a well-resourced team. The restructuring of the business into ‘three hubs one team’ across offices in London, Dubai and Shanghai has enhanced the regional distribution model and enabled the provision of more locally tailored services. Risk consultants and client servicing Managers are also employed in the Americas and Australasia. This, combined with a significant investment in new staff and infrastructure has underpinned the successful performance against current trends. The Charterers P&I Club is the obvious choice for professional charterers that understand the value to them of its specialisation and want the highest quality without the compromise and conflict of being insured by an Owners P&I Club.”

CHARTERERS P&I CLUBwww.exclusivelyforcharterers.com

Reinsurance Carrier: Munich Re Standard and Poor’s Rating: AA-

Maximum Limit Offered: Up to USD 500 Million Vessel Type/ Size Cap: No restrictions



26% Northern Europe

3% Middle East

12% Australia/

New Zealand

9% Southern

Europe

4% Africa

42% India/Asia

2% South America2% North America

64% Bulkers

16%General

Cargo

13%Liner

5%Tankers

2% Others


51



AVG PREMIUM PER VSL (US$)2013 PY: 2,256.002014 PY: 2,320.00


+3.6% +4.1% –0.5%

Policy Year: 2008 2009 2010 2011 2012 2013 2014

Charterers Premium Income 25,500,000 28,000,000 27,000,000 25,500,000 27,200,000 28,200,000 28,300,000

CHARTERERS LIABILTIY INCOME USD

Policy Year: 2008 2009 2010 2011 2012 2013 2014

No. Vessels - 11,000 11,500 11,000 12,000 12,500 12,200

NO. VESSELS INSURED USD

100%

80%

60%

40%

20%

0%P&I Charterers/DTH


13,000

12,500

12,000

11,500

11,000

10,500

10,000

VESSELS ON RISK

20

09

20

10

20

11

20

12

20

13

20

14

29,000,000

28,000,000

27,000,000

26,000,000

25,000,000

24,000,000

P&I PREMIUM INCOME

20

08

20

09

20

10

20

11

20

12

20

13

20

14

2,600

2,500

2,400

2,300

2,200

2,100

AVERAGE PREMIUM PER VESSEL

20

09

20

10

20

11

20

12

20

13

20

14


52

INTRODUCTION In 2008 the Club commenced underwriting Charterer’s Liability risks, today their portfolio commands a premium income of around US$ 9 Million, with approximately 150 charterers & traders clients. The Clubs’ charterer’s facility offers limits up to US$ 500 Million for traditional Charterer’s 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.

NORWEGIAN HULL CLUB SAYS“The Norwegian Hull Club’s P&I facility is exclusively for charterers, including chartering operations for commodity traders and producers.

The P&I team has considerable experience in bulk and tanker trades and, as an integrated part of one of the world’s leading marine underwriters, is able to draw on the technical and nautical expertise available within the rest of the Club. The considerable resources of the Club’s Loss Prevention Department are also available. The team has significant knowledge and experience of maritime law and is able to offer extensive advice and assistance to its’ chartering clients regarding all pre- and post-fixture issues.

With its’ exclusive focus on chartering clients, the facility is able to avoid conflicts within the Club between owners’ and charterers’ P&I interests and the tension that inevitably results from a provider concentrating on its owner clients.The Club’s remains committed to be a long-term strategic partner to its chartering clients, not a pure capacity provider and the decision in 2014 to alter the focus of its portfolio away from small-scale traders and towards industrial clients has had a positive impact in a difficult market.”

NORWEGIAN HULL CLUBwww.norclub-no

Reinsurance Carrier: Lloyds of London Standard and Poor’s Rating: A

Maximum Limit Offered: USD 500 Million Vessel Type/ Size Cap: No restrictions

Facility Location: Oslo, Norway


17% South America 31%

Europe

48% Asia-Pacific

3% North America

1% Middle

East

66%Bulkers

20%General

Cargo

13%Others


53

Policy Year: 2008 2009 2010 2011 2012 2013 2014

Charterers Premium Income 4,800,000 8,700,000 9,500,000 11,000,000 11,500,000 10,000,000 9,000,000


Policy Year: 2008 2009 2010 2011 2012 2013 2014

No. Vessels 890 1,340 1,630 1,880 1,960 1,496 1,557


80%

60%

40%

20%

0%Other Risks WarH&M Charterers/DTH


2,500

2,000

1,500

1,000

500

0

VESSELS ON RISK

20

08

20

09

20

10

20

11

20

12

20

13

20

14



AVG PREMIUM PER VSL (US$)2013 PY: 6,684 2014 PY: 5,780


+4.1% –13.5%–10%

14,000,000

12,000,000

10,000,000

8,000,000

6,000,000

4,000,000

2,000,000

0

P&I PREMIUM INCOME

20

08

20

09

20

10

20

11

20

12

20

13

20

14

7,700

7,200

6,700

6,200

5,700

5,200

4,700

AVERAGE PREMIUM PER VESSEL

20

08

20

09

20

10

20

11

20

12

20

13

20

14

Examining and comparing industry statistics on the various International Group Club’s 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.

INTRODUCTION

INDUSTRY STATISTICS

03


56

USD ‘000

INSURER 2008 2009 2010 2011 2012 2013 2014 Variance on 5 Year Cumulative 2013 PY Result

British Marine $93,000 $125,000 $133,500 $125,000 $106,000 $100,000 $97,500 -2.50% -36.92%

RaetsMarine $28,600 $35,500 $36,400 $51,700 $50,000 $52,000 $52,500 0.96% 30.67%

Lodestar - - - - $16,500 $25,000 $30,000 20.00%

Osprey Underwriting Agency $31,000 $36,000 $40,500 $41,100 $38,400 $30,000 $27,500 -8.33% -47.27%

Navigators $28,200 $25,000 $24,000 $22,500 $22,000 $21,430 $20,000 -6.67% -20.00%

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% -39.39%

Hydor AS - - - $2,000 $5,000 $9,000 $14,000 55.56%

Carina - - - - - $7,250 $10,000 37.93%

Eagle Ocean Marine - - $500 $5,000 $6,500 $6,500 $7,000 7.69% 92.86%

Rosgosstrakh Ltd $744 $1,943 $3,286 $3,885 $4,008 $4,800 $6,200 29.17% 47.00%

TOTAL $214,644 $261,893 $275,886 $286,213 $291,631 $296,080 $300,700 1.56% 8.99%

AVERAGE $30,663 $37,413 $34,486 $31,801 $29,163 $26,916.36 $27,336.36 1.56% 8.99%

P&I OWNED PREMIUM INCOME DEVELOPMENT

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

British Marine RaetsMarine Lodestar OspreyUnderwriting

Agency



Hydor AS Carina Eagle OceanMarine

RosgosstrakhLtd

2013 2014

$210,000

$220,000

$230,000

$240,000

$250,000

$260,000

$270,000

$280,000

$290,000

$300,000

$310,000

2009 2010 2011 2012 2013 20142008

MARKET VARIANCE ON 2014 POLICY YEAR BY PREMIUM INCOME (US$)

INDUSTRY STATISTICS

57

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000


Agency




RosgosstrakhLtd

2013 2014

$210,000

$220,000

$230,000

$240,000

$250,000

$260,000

$270,000

$280,000

$290,000

$300,000

$310,000

2009 2010 2011 2012 2013 20142008

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000


Agency




RosgosstrakhLtd

2013 2014

$210,000

$220,000

$230,000

$240,000

$250,000

$260,000

$270,000

$280,000

$290,000

$300,000

$310,000

2009 2010 2011 2012 2013 20142008

PREMIUM INCOME DEVELOPMENT (US$)

MARKET SHARE BY PREMIUM INCOME (2014)

10%Lodestar

32% British Marine

17% RaetsMarine

9%Osprey

Underwriting Agency

7%Navigators

6%Hanseatic

Underwriters

5% Ingosstrakh Insurance Co

5% Hydor AS

2% Eagle Ocean Marine

3% Carina

2% Rosgosstrakh Ltd


58

GT ‘000


RaetsMarine 5,298 12,178 11,390 16,262 15,806 15,366 15,500 0.87% 26.52%

British Marine 11,000 13,500 13,520 12,600 12,000 11,000 10,600 -3.64% -27.55%

Ingosstrakh Insurance Co 7,895 5,879 6,024 4,730 5,001 5,001 4,200 -16.02% -43.43%

Carina - - - - - 2,000 3,000 50.00%

Hanseatic Underwriters 1,400 1,600 1,900 2,100 2,400 2,700 2,850 5.56% 33.33%

Lodestar - - - - 1,777 2,756 3,500 27.00%

Rosgosstrakh Ltd 235 562 1,038 1,055 1,118 1,424 2,044 43.54% 49.22%

Navigators 2,450 2,300 2,100 2,200 2,100 2,000 1,900 -5.00% -10.53%

Hydor AS - - - 1,000 1,200 1,300 1,657 27.46%

Eagle Ocean Marine - - 50 470 650 590 898 52.20% 94.43%

TOTALS 28,278 36,019 36,022 40,417 42,052 44,137 46,149 4.56% 21.94%

AVERAGE 4,713 6,003 5,146 5,052 4,672 4,414 4,615 4.56% -11.51%

P&I OWNED GT DEVELOPMENT

2013 2014

British MarineRaetsMarine Lodestar NavigatorsHanseaticUnderwriters


Hydor ASCarina Eagle OceanMarine

RosgosstrakhLtd

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

Tonn

age

(’000

s)

25,000

30,000

35,000

40,000

50,000

45,000

$5.800

$6.000

$6.200

$6.400

$6.600

$6.800

$7.000

$7.200

$7.400

$7.600

$7.800

USD

Per

Ton

2008

Average Rate PGT

2009 2010 2011 2012 20142013

Total Owned GT

25,000

27,000

29,000

31,000

33,000

35,000

37,000

39,000

41,000

43,000

45,000

47,000

2008 2009 2010 2011 2012 2013 2014

MARKET VARIANCE ON 2014 POLICY YEAR BY GROSS TONNAGE

INDUSTRY STATISTICS

59

2013 2014




RosgosstrakhLtd

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

Tonn

age

(’000

s)

25,000

30,000

35,000

40,000

50,000

45,000

$5.800

$6.000

$6.200

$6.400

$6.600

$6.800

$7.000

$7.200

$7.400

$7.600

$7.800

USD

Per

Ton

2008

Average Rate PGT

2009 2010 2011 2012 20142013

Total Owned GT

25,000

27,000

29,000

31,000

33,000

35,000

37,000

39,000

41,000

43,000

45,000

47,000

2008 2009 2010 2011 2012 2013 2014

2013 2014




RosgosstrakhLtd

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

Tonn

age

(’000

s)

25,000

30,000

35,000

40,000

50,000

45,000

$5.800

$6.000

$6.200

$6.400

$6.600

$6.800

$7.000

$7.200

$7.400

$7.600

$7.800

USD

Per

Ton

2008

Average Rate PGT

2009 2010 2011 2012 20142013

Total Owned GT

25,000

27,000

29,000

31,000

33,000

35,000

37,000

39,000

41,000

43,000

45,000

47,000

2008 2009 2010 2011 2012 2013 2014

GROSS TONNAGE DEVELOPMENT

MARKET SHARE BY GROSS TONNAGE (2014)

AVERAGE RATE PER GT VS OWNED GT

34% RaetsMarine

23% British Marine

9% Ingosstrakh Insurance Co

7%Carina

6%Hanseatic

Underwriters

8%Lodestar

4% Rosgosstrakh Ltd

4% Navigators

4% Hydor AS 2% Eagle Ocean Marine


60

USD PER GT


Navigators $11.510 $10.870 $11.429 $10.227 $10.476 $10.715 $10.526 -1.76% -8.57%

British Marine $8.455 $9.259 $9.874 $9.921 $8.833 $9.091 $9.198 1.18% -7.35%

Lodestar - - - - $9.285 $9.071 $8.571 -5.51%

Hydor AS - - - $2.000 $4.167 $6.923 $8.449 22.04%

Eagle Ocean Marine - - $10.000 $10.638 $10.000 $11.017 $7.795 -29.24% -28.29%

Hanseatic $5.500 $7.000 $7.737 $7.524 $8.208 $6.778 $6.842 0.95% -13.08%

Ingosstrakh $3.217 $4.635 $3.818 $4.065 $4.704 $4.359 $3.929 -9.88% 2.81%

RaetsMarine $5.398 $2.915 $3.196 $3.179 $3.163 $3.384 $3.387 0.09% 5.65%

Carina - - - - - $3.625 $3.333 -8.05%

Rosgosstrakh Ltd $3.166 $3.457 $3.166 $3.682 $3.585 $3.371 $3.033 -10.01% -4.37%

TOTALS $7.590 $7.271 $7.659 $7.082 $6.935 $6.708 $6.516 -2.87% -14.92%

VARIANCE -4.21% 5.33% -7.54% -2.07% -3.27% -2.87% -2.87% -14.92%

P&I OWNED AVERAGE P&I RATE PER GT DEVELOPMENT

$0.000

$2.000

$4.000

$6.000

$8.000

$10.000

$12.000


2014Average

2013 2014

$210,000

$220,000

$230,000

$240,000

$250,000

$260,000

$270,000

$280,000

$290,000

$310,000

2009 2010 2011 2012 2013 20142008

AVERAGE RATE PER GT DEVELOPMENT (LAST 12 MONTHS)

INDUSTRY STATISTICS

61

$0.000

$2.000

$4.000

$6.000

$8.000

$10.000

$12.000


2014Average

2013 2014

$210,000

$220,000

$230,000

$240,000

$250,000

$260,000

$270,000

$280,000

$290,000

$310,000

2009 2010 2011 2012 2013 20142008

$0.000

$2.000

$4.000

$6.000

$8.000

$10.000

$12.000


2014Average

2013 2014

$210,000

$220,000

$230,000

$240,000

$250,000

$260,000

$270,000

$280,000

$290,000

$310,000

2009 2010 2011 2012 2013 20142008

AVERAGE RATE PER GT DEVELOPMENT (US$)

OWNED P&I MARKET CYCLE

-10%

-8%

-6%

-4%

-2%

0%

2%

4%

6%

2009 2010 2011 2012 2013 2014

Perc

enta

ge


62

USD ‘000


Charterama BV - $3,000 $5,000 $6,000 $8,000 $10,000 $10,500 5.00% 52.38%

Charterers P&I Club $25,000 $28,000 $27,000 $25,500 $27,200 $28,200 $28,300 0.35% 4.59%

RaetsMarine BV $0 $24,500 $26,000 $25,700 $27,000 $25,500 $26,000 1.96% 0.00%

Norwegian Hull Club $4,800 $8,700 $9,500 $11,000 $11,500 $11,000 $9,000 -18.18% -5.56%

Hanseatic Underwriters $1,200 $850 $900 $950 $1,000 $1,200 $1,350 12.50% 33.33%

TOTAL $31,000 $65,050 $68,400 $69,150 $74,700 $75,900 $75,150 -0.99% 9.87%

VARIANCE 109.84% 5.15% 1.10% 8.03% 1.61% -0.99% -0.99% 9.87%

P&I CHARTERERS & TRADERS PREMIUM INCOME DEVELOPMENT

2010 2011 2012 2013 2014$64,000

$66,000

$68,000

$70,000

$72,000

$74,000

$76,000

$78,000

2009

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

Charterama BV Charterers P&I Club RaetsMarine BV Norwegian Hull Club

2013 2014

Hanseatic Underwriters

Tonn

age

(’000

s)

30,000

32,000

36,000

40,000

44,000

34,000

38,000

42,000

48,000

46,000

$10,000

$10,200

$10,600

$11,000

$11,200

$10,400

$10,800

$11,400

$11,600

$11,800

$12,000

USD

Per

Ton

2009

Average Premium Development

2010 2011 2012 2013 2014



INDUSTRY STATISTICS

63

2010 2011 2012 2013 2014$64,000

$66,000

$68,000

$70,000

$72,000

$74,000

$76,000

$78,000

2009

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000


2013 2014


Tonn

age

(’000

s)

30,000

32,000

36,000

40,000

44,000

34,000

38,000

42,000

48,000

46,000

$10,000

$10,200

$10,600

$11,000

$11,200

$10,400

$10,800

$11,400

$11,600

$11,800

$12,000

USD

Per

Ton

2009


2010 2011 2012 2013 2014


2010 2011 2012 2013 2014$64,000

$66,000

$68,000

$70,000

$72,000

$74,000

$76,000

$78,000

2009

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000


2013 2014


Tonn

age

(’000

s)

30,000

32,000

36,000

40,000

44,000

34,000

38,000

42,000

48,000

46,000

$10,000

$10,200

$10,600

$11,000

$11,200

$10,400

$10,800

$11,400

$11,600

$11,800

$12,000

USD

Per

Ton

2009


2010 2011 2012 2013 2014


PREMIUM INCOME DEVELOPMENT (US$) PREMIUM INCOME DEVELOPMENT PER GT VS NUMBER OF VESSELS ON RISK

MARKET SHARE BY PREMIUM INCOME (US$)

38% Charterers P&I Club

35%RaetsMarine BV

12% Norwegian Hull Club

2% Hanseatic Underwriters

14% Charterama BV


64


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%

RaetsMarine BV 18,061 22,371 23,783 23,783 21,000 21,000 0.00% -6.53%

Norwegian Hull Club 890 1,340 1,630 1,880 1,960 1,496 1,557 4.08% -4.69%

Hanseatic Underwriters - - - - - - -

TOTAL 890 32,901 39,501 42,463 46,043 44,996 45,557 1.25% 15.33%

VARIANCE 3596.74% 20.06% 7.50% 8.43% -2.27% 1.25% 1.25% 15.33%

P&I CHARTERERS & TRADERS NUMBER OF VESSELS INSURED DEVELOPMENT

MARKET SHARE BY NUMBER OF VESSELS INSURED

27% Charterers P&I Club

46%RaetsMarine BV

3% Norweigan Hull Club

23% Charterama BV

INDUSTRY STATISTICS

65

$0

$5,000

$10,000

$15,000

$20,000

$25,000

Charterama BV Charterers P&I Club RaetsMarine BV Norwegian Hull Club Hanseatic Underwriters

2013 2014

2010 2011 2012 2013 20142009$30,000

$32,000

$34,000

$38,000

$36,000

$40,000

$44,000

$42,000

$46,000

$50,000

$48,000

NUMBER OF VESSELS INSURED DEVELOPMENT

MARKET VARIANCE ON 2014 POLICY YEAR BY NUMBER OF VESSELS INSURED


66

2010 2011 2012 2013 20142009$10,000

$10,200

$10,400

$10,800

$10,600

$11,000

$11,400

$11,200

$11,600

$12,000

$11,800

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$8,000

$7,000

$6,000


2013 2014

2009 2010 2011 2012 2013 2014$10,000

$15,000

$20,000

$25,000

$30,000

2008

$30,500

$31,000

$31,500

$32,000

$32,500

Korean P&I Club

2013 2014


Charterama BV - $1,200 $1,250 $1,034 $964 $1,000 $1,000 0.00% -25.00%

Charterers P&I Club - $2,545 $2,348 $2,318 $2,267 $2,256 $2,264 0.35% -3.70%

RaetsMarine BV - $1,357 $1,162 $1,081 $1,135 $1,214 $1,238 1.96% 6.13%

Norwegian Hull Club $5,393 $6,493 $5,828 $5,851 $5,867 $7,353 $5,780 -21.39% -0.83%

Hanseatic Underwriters - - - - - - -

TOTAL $5,393 $11,595 $10,588 $10,284 $10,233 $11,823 $10,282 -14.98% -2.89%

VARIANCE 114.98% -8.68% -2.87% -0.50% 15.54% -13.03% -14.98% -2.89%

P&I CHARTERERS & TRADERS AVERAGE PREMIUM PER VESSEL DEVELOPMENT

AVERAGE PREMIUM PER VESSEL DEVELOPMENT (US$)

AVERAGE PREMIUM PER VESSEL DEVELOPMENT (LAST 12 MONTHS)

INDUSTRY STATISTICS

67

2010 2011 2012 2013 20142009$10,000

$10,200

$10,400

$10,800

$10,600

$11,000

$11,400

$11,200

$11,600

$12,000

$11,800

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$8,000

$7,000

$6,000


2013 2014

2009 2010 2011 2012 2013 2014$10,000

$15,000

$20,000

$25,000

$30,000

2008

$30,500

$31,000

$31,500

$32,000

$32,500

Korean P&I Club

2013 2014

NON-IG MUTUAL P&I PREMIUM INCOME DEVELOPMENT

PREMIUM INCOME DEVELOPMENT (US$)


USD ‘000


China P&I Club $34,941 $44,802 $51,148 $60,012 $67,090 -

Korean P&I Club $13,248 $19,509 $26,002 $28,894 $29,653 $31,127 $32,323 3.84% 19.56%

TOTAL $48,189 $64,311 $77,150 $88,906 $96,743 $31,127 $32,323

VARIANCE 33.46% 19.96% 15.24% 8.81% -67.83% 3.84%


68

$16,000

$17,000

$18,000

$19,000

$20,000

$21,000

$22,000

Korean P&I Club

2013 2014

2010 2011 2012 2013 20142009$4,000

$9,000

$14,000

$24,000

$19,000

2008

$1,400

$1,450

$1,500

$1,550

$1,600

$1,650

$1,700

$1,750

Korean P&I Club

2013 2014

$1,000

$1,500

$2,000

$3,000

$2,500

$3,500

2010 2011 2012 2013 201420092008

NON-IG MUTUAL P&I GT DEVELOPMENT

GROSS TONNAGE DEVELOPMENT

MARKET VARIANCE ON 2014 POLICY YEAR BY GROSS TONNAGE

USD ‘000


China P&I Club 16,510 17,880 24,010 27,800 31,340 -

Korean P&I Club 4,996 7,338 8,685 10,007 11,833 18,192 21,090 15.93% 58.82%

TOTAL 21,506 25,218 32,695 37,807 43,173 18,192 21,090

VARIANCE 17% 30% 16% 14% -58% 16%

INDUSTRY STATISTICS

69

$16,000

$17,000

$18,000

$19,000

$20,000

$21,000

$22,000

Korean P&I Club

2013 2014

2010 2011 2012 2013 20142009$4,000

$9,000

$14,000

$24,000

$19,000

2008

$1,400

$1,450

$1,500

$1,550

$1,600

$1,650

$1,700

$1,750

Korean P&I Club

2013 2014

$1,000

$1,500

$2,000

$3,000

$2,500

$3,500

2010 2011 2012 2013 201420092008

AVERAGE RATE PER GT DEVELOPMENT (US$)

AVERAGE RATE PER GT DEVELOPMENT (LAST 12 MONTHS)

USD PER GT


China P&I Club $2.116 $2.506 $2.130 $2.159 $2.141 -

Korean P&I Club $2.652 $2.659 $2.994 $2.887 $2.506 $1.711 $1.533 -10.43% -95.34%

TOTAL $4.768 $5.164 $5.124 $5.046 $4.647 $1.711 $1.533

VARIANCE 8.31% -0.78% -1.52% -7.92% -63.18% -10.43%

NON-IG MUTUAL P&I AVERAGE P&I RATE PER GT DEVELOPMENT


70

RATING AGENCY ANALYSIS

Arthur J Gallagher (UK) Ltd (“AJG (UK)”) operates a market security policy which sets a minimum standard for insurance markets which can be included on its acceptable market security list. A number of criteria are utilised to evaluate the financial condition of these markets and one of the criteria used is the ratings allocated by either Standard & Poor’s (S&P) or A M Best. The AJG (UK) security policy sets a minimum rating level of A- from these agencies as an indicator of acceptable security.

Accordingly where a security fails to meet the minimum criteria, we would direct your attention to your P&I Insurers financial strength rating, where and when it falls below an S&P or AM Best A- rating and where this security no longer qualifies for inclusion on the AJG (UK) market security list; requesting that you advise us if you wish us to attempt to source an alternative market. In some cases it may be possible to arrange P&I cover with an S&P or AM Best ‘A’ rated carrier on similar terms.

This is something that we can discuss with you on an individual case by case basis. It is important that you carefully consider maintaining your insurance with your current P&I insurer where the rating is below the AJG(UK) minimum of A- and that should you decide to do so that you also understand that AJG (UK) are not responsible for the continuing performance of any security and that any future credit risk associated with renewing the policy with your current insurer will be borne by the assured. We would, therefore, draw your attention to the following ratings and respectfully request that, if you require us to look at other options in respect of your risk here, you advise us accordingly as soon as possible.

Standard and Poor’s Ratings

Ratings BBB or higher are regarded as having financial security characteristics that outweigh any vulnerabilities, and are likely to have the ability to meet financial commitments.

AA: “Very Strong” financial security characteristics.

A: “Strong” financial security characteristics, but is somewhat more likely to be affected by adverse business conditions than are insurers with higher ratings.

BBB: “Good” financial security characteristics, but is more likely to be affected by adverse business conditions than are higher rated insurers.

Ratings BB or lower are regarded as having vulnerable characteristics that may outweigh the strengths.

BB: “Marginal” financial security characteristics. Positive attributes exist, but adverse business conditions lead to insufficient ability to meet financial requirements.

B: “Weak” financial security characteristics. Adverse business conditions will likely impair the ability to meet financial commitments.

+ or – signs show relative standing within the major rating category.

P&I FACILITY CURRENT RATING P&I FACILITY CURRENT RATING

BRITISH MARINE A+ INGOSSTRAKH BBB-

CARINA A+ KOREAN P&I CLUB UNRATED BY S&P

CHARTERAMA BV A LODESTAR LTD A

CHARTERERS P&I CLUB AA- NAVIGATORS P&I A

EAGLE OCEAN MARINE BBB- NORWEGIAN HULL CLUB A

HANSEATIC P&I A OSPREY A+

HELLENIC P&I UNRATED BY S&P RAETSMARINE BV A-

HYDOR AS A+ ROSGOSSTRAKH LTD BB-

MAJOR LIMITING CONVENTIONS AND STATUTESAFFECTING P&I RISKSDEVELOPMENTS IN THE LAST 12 MONTHS

04


74

COMINGS AND GOINGSThe past 12 months has seen the introduction of the Nairobi International Convention on the removal of Wrecks (2007) in April 2015 and the introduction of new, 51% higher, limits of liability under the LLMC 1996: both are covered later in this section.

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 (29-14). The decision had been opposed by the P&I Clubs, not least on the grounds that there were still pollution cases outstanding involving them.

The Fund, which has paid out in excess of $ 350 million in compensation since its creation, had latterly been embroiled in a long standing dispute with Gard over the “Nissos Amorgos” claim. This claim was eventually settled in April 2015, but claims cooperation between the P&I Clubs and the successor Funds is still somewhat sensitive. The Clubs are presently reviewing settlement guidelines and potentially the need for contractually binding agreements to underpin the continuance of interim payments.

SANCTIONSMaintaining the trend of recent years, sanctions continue to be used on an ever expanding basis. 2014 saw the creation or extension of sanctions by the EU, USA and some other individual states: the principal targets of these sanctions remain unchanged Cuba, North Korea, Iran and similar so called “rogue states”. In the past 12 months sanctions have been imposed or extended against Russia, Ukraine Crimea and Syria. However the recently renegotiated JPOA agreement concerning Iran promises an easing of circumstances in the future. In turn the “western bloc” sanctions have spawned “tit for tat” sanctions, in particular by Russia.

Primarily the sanctions are used to prompt regime change, enforce foreign policy objectives or to avoid financing of terrorism. As such, they appear to be part of the international economic, and hence trade, environment, in one form or another, for the foreseeable future, with economic pressures being used to enforce political objectives.

MARITIME LABOUR CONVENTION (“MLC”)As reported last year, the MLC came into force on 20 August 2013 having presented the Clubs with a couple of coverage dilemmas. Most liabilities under the MLC fell under normal Club cover, but there are a number of areas which were considered likely to cause problems.

The MLC requires financial security to be in place to cover abandonment and repatriation of crew where the shipowner becomes insolvent. This issue was addressed by extending Club cover to insure this aspect of “credit risk”, on a non-pooled basis.

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 owner’s 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.

DEVELOPMENTS IN THE PAST 12 MONTHS

MAJOR LIMITING CONVENTIONS & STATUTES AFFECTING P&I RISKS

75

1. CONVENTION ON LIMITATION OF LIABILITY FOR MARITIME CLAIMS (LLMC), 1976 (IN FORCE 1 DEC 1986)

This convention applies to all vessels involved in incidents in signatory states, except such incidents to which the Civil Liability Convention (See Section 2) applies. In effect it replaced the 1957 Brussels Convention. At 14 August 2015, it has been ratified by 53 states, covering 53.68% of world tonnage.

The right to limit losses under this convention is lost if the incident involves a personal act or omission carried out intentionally or recklessly and with the knowledge that loss would result.

Liability under the convention is calculated in accordance with the following formulae (note that, at 14 August 2015, SDR 1 = approximately US$ 1.40):

1.1 PERSONAL INJURY / LOSS OF LIFE

VESSEL SIZE FORMULA

500 GT or less Minimum SDR 333,000

501-3,000 GT Add SDR 500 per GT to the above sum

3,001-30,000 GT Add SDR 333 per GT to the above aggregate


70,001 GT or more Add SDR 167 per GT to the above aggregate

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 Minimum SDR 167,000

501-30,000 GT Add SDR 167 per GT to the above sum



EXAMPLE

25,000 GT SDR 4,258,500

75,000 GT SDR 10,508,500


76

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 Minimum SDR 2,000,000

2,001-30,000 GT Add SDR 800 per GT to the above sum



EXAMPLE

25,000 GT SDR 20,400,000

75,000 GT SDR 50,400,000

1A.2 PROPERTY

VESSEL SIZE FORMULA





EXAMPLE

25,000 GT SDR 10,200,000

75,000 GT SDR 25,200,000

1A.


77

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


2,001-30,000 GT Add SDR 1,208 per GT to the above sum



EXAMPLE

25,000 GT SDR 30,804,000

75,000 GT SDR 76,104,000

1B.2 PROPERTY

VESSEL SIZE FORMULA





EXAMPLE

25,000 GT SDR 15,402,000

75,000 GT SDR 38,052,000

1B.


78

INTERNATIONAL CONVENTION ON CIVIL LIABILITY FOR OIL POLLUTION DAMAGE (CLC), 1969 (IN FORCE 19 JUN 1975); PROTOCOL TO CLC, 1992 (IN FORCE 30 MAY 1996)

The Civil Liability Convention covers those who suffer oil pollution damage resulting from maritime casualties involving oil-carrying ships. The Convention places the liability for such damage on the owner of the ship from which the polluting oil escaped or was discharged.

The original Convention has been largely replaced by the 1992 Protocol, which has been adopted by 134 states, encompassing 96.69% of world shipping as at 14 August 2015. 35 states encompassing 2.70% of world shipping remain under the original 1969 regime. Liability is strict, and insurance is compulsory.

Liability under the convention is calculated in accordance with the following formulae:

2.1 LIABILITY UNDER CLC (1992 PROTOCOL)

VESSEL SIZE FORMULA


5,001 GT or more Add SDR 420 per GT to the above sum

Maximum SDR 59,700,000 (equivalent to 140,000 GT)

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


5,001 GT or more Add SDR 631 per GT to the above sum

Maximum SDR 89,770,000 (equivalent to 140,000 GT)

EXAMPLE

25,000 GT SDR 17,130,000

75,000 GT SDR 48,680,000

2.


79

INTERNATIONAL CONVENTION ON THE ESTABLISHMENT OF AN INTERNATIONAL FUND FOR COMPENSATION FOR OIL POLLUTION DAMAGE (FUND), 1992 PROTOCOL (IN FORCE 30 MAY 1996)

The purpose of this Fund is to provide compensation for pollution damage to the extent that the protection afforded by the 1969 Civil Liability Convention is inadequate. It is also intended to give relief to shipowners in respect of the additional financial burden imposed on them by the 1969 Civil Liability Convention, with such relief being subject to conditions designed to ensure compliance with safety at sea and other conventions.

The Fund is financed by receivers of persistent oil cargoes in signatory states, via a governmental levy. It is managed by an inter-governmental organisation, the IOPC Funds.

The original 1971 Fund was denunciated in 2002 when the number of contracting states fell below 25, being effectively replaced by the 1992 Fund which entered into force in 1996. Subsequently the limits in the 1992 Fund were increased by amendment in 2000, effective November 2003.

114 states have adopted the 1992 Protocol at 14 August 2015 covering 94.16% of the world fleet.

The 2000 protocol increased this maximum sum to SDR 203 million via a tacit approval procedure, inclusive of the primary contribution under the 1992 CLC Protocol.

SUPPLEMENTARY FUND, 2003 (IN FORCE 3 MAR 2005)

The aim of this Fund is to supplement the compensation available under the 1992 Civil Liability and Fund Conventions with an additional, third tier of compensation. The Protocol is optional and participation is open to all States which are party to the 1992 Fund Convention. 31 states have adopted the 2003 protocol at 14 August 2015, covering 18.26% of the world fleet.

As with the 1992 Fund, the Supplementary Fund is financed by levies on receivers of persistent oil cargoes.

The total amount of compensation payable for any one incident will be limited to a combined total of SDR 750 million inclusive of the amount of compensation paid under the existing CLC/Fund Convention system.

TANKER OIL POLLUTION INDEMNIFICATION AGREEMENTS

In recognition of the potential disparities between contributions by shipowners and receivers of cargo towards the cost of pollution incidents, two agreements came into force in 2006 which sought to remedy the situation.

Under STOPIA, owners of small tankers of 29,548 GT or less indemnify the 1992 Fund for the difference between their 1992 CLC liability and SDR 20 million.

Under TOPIA, all tanker owners indemnify the 2003 Supplementary Fund in respect of 50% of any claim falling on that fund.

3.

4.

5.


80

US OIL POLLUTION ACT (OPA), 1990

The USA is not party to any of the above pollution related conventions, instead there are specific statutes which affect any vessels discharging oil, oil products or oil by-products in US waters.

The main one of these is OPA 1990, which imposes strict liability – the only defence being acts of war, acts of God or that the loss was caused solely by the actions of a third party. In July 2006, the US Coast Guard & Maritime Trans-portation Act 2006 amended limits under OPA 1990 as set out in the table below. For non tank vessels the above increases were immediate, and for tank vessels they came into force in October 2006.

6.1 LIMITS OF LIABILITY UNDER OPA 1990 AS AMENDED IN 2006

VESSEL SIZE FORMULA

Single Hull Tanker: 3,000 GT or less US$ 3,000 per GT with minimum US$ 6,000,000

Single Hull Tanker: 3,000 GT or more US$ 3,000 per GT with minimum US$ 22,000,000

Double Hull Tanker: 3,000 GT or less US$ 1,900 per GT with minimum US$ 4,000,000

Double Hull Tanker: 3,000 GT or more US$ 1,900 per GT with minimum US$ 16,000,000

Other Vessels US$ 950 per GT with minimum US$ 800,000

EXAMPLE

25,000 GT Single: US$ 75,000,000 Double: US$ 47,500,000


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

Single Hull Tanker: 3,000 GT or less US$ 3,200 per GT with minimum US$ 6,408,000

Single Hull Tanker: 3,000 GT or more US$ 3,200 per GT with minimum US$ 23,496,000

Double Hull Tanker: 3,000 GT or less US$ 2,000 per GT with minimum US$ 4,272,000

Double Hull Tanker: 3,000 GT or more US$ 2,000 per GT with minimum US$ 17,088,000

Other Vessels US$ 1,000 per GT with minimum US$ 854,400

EXAMPLE



Deepwater Port, unless established US$ 373.800,000

under Reg 33 U.S.C. 2704(d)(2)

LOOP US$ 87,606,000

6.


81

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.

US COMPREHENSIVE ENVIRONMENTAL RESPONSE, COMPENSATION AND LIABILITY ACT (CERCLA), 1980

This legislation is focussed on “hazardous substances”, however there are circumstances where both CERCLA and OPA could apply to an incident involving a shipowner, operator, bareboat charterer etc. Club cover is discretionary as regards CERCLA related claims.

Limits of liability are as follows:

a) for vessels over 300 GT carrying a hazardous substance as cargo – the greater of US$ 5 million or US$ 300 per GT;b) for any other vessel over 300 GT – the greater of US$ 500,000 or US$ 300 per GT.

These limits did not change when the OPA 90 limits were raised in July 2009.

In respect of obligations under both OPA and CERCLA, Certificates of Financial responsibility (COFRs) are required. As Clubs are unwilling to certify financial responsibility as required by the US regulators, the COFR is generally provided by an independent issuing company, and covers the aggregate of the CERCLA and OPA limits of liability.

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.

ATHENS CONVENTION RELATING TO THE CARRIAGE OF PASSENGERS AND THEIR LUGGAGE BY SEA (PAL), 1974 (IN FORCE 30 APR 1989) & 2002 PROTOCOL THERETO (IN FORCE 23 APRIL 2014)

The Convention consolidated and harmonised two earlier Brussels conventions dealing with passengers and luggage, which were adopted in 1961 and 1967 respectively. It establishes a regime of liability for damage suffered by passengers carried on a seagoing vessel. It declares a carrier liable for damage or loss suffered by a passenger if the incident causing the damage occurred in the course of the carriage and was due to the fault or neglect of the carrier.

However, unless the carrier acted with intent to cause such damage, or recklessly and with knowledge that such damage would probably result, it can limit its liability. For the death of, or personal injury to, a passenger, this limit of liability is set at SDR 46,666 per passenger.

Liability is however further limited for losses arising from acts of terrorism to the practically insurable amount. As of 2006, this amount is SDR 250,000 per passenger with an aggregate limit of SDR 340 million.

Subsequent to the ratification of this convention (by 26 states to date, covering 32.03% of the world’s fleet) the limitation amount has become more and more inadequate. A 1990 protocol increasing the limit to SDR 175,000 was not adopted (being ratified by only 4 minor states) and has been superseded by the 2002 protocol.

7.

8.


82

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.

8.1 LIMITS UNDER 2002 PROTOCOL TO PAL

TYPE OF LOSS LIMIT

Strict Liability Passenger Personal Injury / Death SDR 250,000 per passenger

Operator Negligence Passenger Personal Injury / Death SDR 400,000 per passenger

Loss or Damage to Cabin Luggage SDR 2,250 per passenger

Loss or Damage to Vehicle and Luggage therein SDR 12,700 per vehicle

Loss or damage to Other Luggage SDR 3,375 per passenger

INTERNATIONAL CONVENTION ON CIVIL LIABILITY FOR BUNKER OIL POLLUTION DAMAGE, (BUNKERS) 2001 (IN FORCE 21 NOV 2008)

The Bunker Convention reached its required criteria of 18 states’ ratification in November 2007, and by 28 July 2014 had 77 acceptances covering 90.52% of the world fleet.

The Convention covers pollution caused by spills of oil carried as fuel on board the vessel. The limits are the same as those imposed under LLMC 1976 as amended by the 1996 Protocol.

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.

9.

10.


83

INTERNATIONAL CONVENTION ON LIABILITY AND COMPENSATION FOR DAMAGE IN CONNECTION WITH THE CARRIAGE OF HAZARDOUS AND NOXIOUS SUBSTANCES BY SEA (HNS), 1996 AND PROTOCOL, 2010 (NOT YET IN FORCE)

The original 1996 HNS Protocol established a two tier compensation regime for amounts up to SDR 250 million and has been ratified by 14 states or 14.14% of world fleet by 14 August 2015.

A Focus Group was established in 2007 in order to address administrative concerns of the ratifying states – particularly in respect of the operations of the 2nd tier of compensation, and the difficulty in establishing how much HNS was received in any country.

A revised 2010 protocol, based on the findings of the above focus group, was adopted in April 2010, but has not yet been ratified by any states, with 8 states signing the protocol “subject to ratification”.

Under this protocol the total compensation remains the same, but the shipowner’s maximum liability for an incident involving packaged HNS is increased from SDR 100 million to SDR 115 million. Thereafter compensation would be paid by a second tier HNS Fund, financed by cargo receivers. The shipowners liability for bulk HNS remains unchanged at SDR 100 million.

The revised protocol will enter force eighteen months after at least 12 States (including at least 4 with over 2 million GT) express their consent to be bound by it. Additional conditions relate to cargo receiving country contributions.

11.1 LIMITS OF LIABILITY UNDER HNS 1996

VESSEL SIZE FORMULA – BULK HNS FORMULA – PACKAGED HNS

2,000 GT or less Minimum SDR 10,000,000 Minimum SDR 11,500,000

2,001-50,000 GT Add SDR 1,500 per GT to the above Add SDR 1,725 per GT to the above


Add SDR 414 per GT to the above aggregate

Maximum SDR 100 million SDR 115 million

EXAMPLE

25,000 GT SDR 44,500,000 SDR 51,175,000

75,000 G SDR 91,000,000 SDR 104,650,000

NAIROBI INTERNATIONAL CONVENTION ON THE REMOVAL OF WRECKS (NAIROBI WRC) 2007 (IN FORCE 14 APRIL 2015)The Convention provides a sound legal basis for coastal states to remove, or have removed, from their coastlines, wrecks which pose a hazard to the safety of navigation or to the marine and coastal environments, or both. It makes shipowners financially liable and requires them to take out insurance or provide other financial security to cover the costs of wreck removal. It also provides states with a right of direct action against insurers.

The Convention has been adopted by 23 states representing 39.46% of the world fleet at 14 August 2015, however not all of these states have extended the operation of the convention to their territorial waters.

11.

12.


84

UN CONVENTION FOR THE INTERNATIONAL CARRIAGE OF GOODS WHOLLY OR PARTLY BY SEA (ROTTERDAM RULES) 2009 (NOT YET IN FORCE)

In 1996, in order to harmonise liability regimes, the United Nations Commission on International Trade Law (UNCITRAL) began a review of laws in the area of the international carriage of goods by sea. An additional aim was to update the regimes to reflect more modern transportation systems. This resulted in the “Rotterdam Rules” which became open for signature in September 2009 and will enter into force 12 months after 20 states have ratified it.

By 30 November 2012, 24 nations have signed the Rules, including major shipping nations such as Greece, Norway and the United States: collectively these signatories account for 25% of world trade. Noticeably none of the major Asian trading nations have signed the Rules.

The Convention will come into force one year after ratification by the 20th UN Member state. Whilst 24 have signed the Convention, only 3 states (Congo, Spain and Togo with no new additions this year) have ratified it at 14 August 2015. A recent survey of various jurisdictions on the question of ratification suggests that there is very little progress being made on the subject within the legislative processes of the countries asked. The European Parliament has recommended member states to move speedily towards ratification, but lethargy seems to be the watchword, and no significant progress is expected to be made in the immediate future.

The Rotterdam Rules have eroded some of the traditional defences available to sea carriers, for example the elimination of the nautical fault defence. The obligation of due diligence has been extended to apply throughout the duration of the voyage, and limits of liability per package, or unit of weight, have been significantly increased, beyond Hague-Visby and Hamburg Rules limits.

The table below contrasts the liability under the various regimes:

13.1 CONTRASTING LIABILITY UNDER “RULES”

“RULE” LIMITATION OF LIABILITY LIABILITY FOR DELAY

Hague (1934) £ 100 per package/unit N/A

Hague Visby (1968) Higher of SDR 2 per kg or SDR 667 per package

N/A

Hamburg (1978) Higher of SDR 2.50 per kg or SDR 835 per package/shipping unit

2.5 times freight on goods delayed subject to an upper limit if lost

Rotterdam (2009) Higher of SDR 3 per kg or SDR 875 per package/shipping unit

2.5 times freight on goods delayed not to exceed limit under rules

US COGSA (1936) US$ 500 per package/unit N/A

13.

CONTACTS05

86


MARINE

AJGINTERNATIONAL.COMArthur 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

Demolition Risk(Hull & Machinery)

Ship Repairers Liability(Marine Liability)

Yachts(Hull & Machinery)

Marina Operators Liability (Marine Liability)

Physical Loss & Damage to Containers (Cargo & StockThroughput)

Port Authorities(Ports & Terminals)

D&O & E&O for Ship Managers, Marine Surveyors (Marine Liability)

Strikes & Terrorism (War Risks)

Pharmaceuticals,Commodity Business, Frozen & Chilled Goods (Cargo & StockThroughput)

Cargo & Stock Throughput

Ports & Terminals

War Risks

Charterers Liability &Damage to Hull (Protection & Indemnity)

Protection & Indemnity

Marine Liability

Terminal Operators(Ports & Terminals)

Stevedores(Ports & Terminals)

Piracy, Kidnap & Ransom(War Risks)

Hull & Machinery

P&I Offshore & MOU Cover(Protection & Indemnity)

Freight Demurrage & Defence Cover (Protection & Indemnity)

87

CONTACTS

MARINE

AJGINTERNATIONAL.COMArthur 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

Demolition Risk(Hull & Machinery)

Ship Repairers Liability(Marine Liability)

Yachts(Hull & Machinery)

Marina Operators Liability (Marine Liability)

Physical Loss & Damage to Containers (Cargo & StockThroughput)

Port Authorities(Ports & Terminals)

D&O & E&O for Ship Managers, Marine Surveyors (Marine Liability)

Strikes & Terrorism (War Risks)

Pharmaceuticals,Commodity Business, Frozen & Chilled Goods (Cargo & StockThroughput)

Cargo & Stock Throughput

Ports & Terminals

War Risks

Charterers Liability &Damage to Hull (Protection & Indemnity)

Protection & Indemnity

Marine Liability

Terminal Operators(Ports & Terminals)

Stevedores(Ports & Terminals)

Piracy, Kidnap & Ransom(War Risks)

Hull & Machinery

P&I Offshore & MOU Cover(Protection & Indemnity)

Freight Demurrage & Defence Cover (Protection & Indemnity)

88


Malcolm Godfrey Executive Director +44 (0)20 7204 1883 [email protected]

Nicola Ellis Divisional Director +44 (0)20 7204 1892 [email protected]

Richard Sturgeon Divisional Director +44 (0)20 7204 1887 [email protected]

Alex Vullo Associate Director +44 (0)20 7204 1891 [email protected]

Wayne Godfrey Associate Director +44 (0)20 7204 1841 [email protected]

William Baynham Associate Director +44 (0)207 560 3456 [email protected]

Nick Roblin Broker +44 (0)20 7234 4983 [email protected]

Lauren Osman Account Executive +44 (0)20 7204 1885 [email protected]

Wendy Needham Account Executive +44 (0)20 7204 1854 [email protected]

Vincenzo Corsaro Technician +44 (0)207 560 3457 [email protected]

LONDON MARINE P&I

Jonathan Suckling Managing Director +44 (0)20 7204 6091 [email protected]

Malcolm Godfrey Executive Director +44 (0)20 7204 1883 [email protected]

Andrew James Executive Director +44 (0)20 7204 6059 [email protected]

Matthew McCabe Executive Director +44 (0)20 7204 6200 [email protected]

Peter Wilmot Executive Director +44 (0)20 7204 1829 [email protected]

LONDON MARINE DIVISION SENIOR MANAGEMENT

Paul Brandram Divisional Director +44 (0)207 560 3336 [email protected]

Nicola Ellis Divisional Director +44 (0)20 7204 1892 [email protected]

Charles Gibbs Divisional Director +44 (0) 207 234 4717 [email protected]

John Glover Divisional Director +44 20 7204 8319 [email protected]

Gemma Greenwood Divisional Director +44 (0)20 7234 4055 [email protected]

Christopher Kearns Divisional Director +44 (0)20 7560 3037 [email protected]

William Kinnear Divisional Director 44 (0)20 7560 3338 [email protected]

Simon Mauduit Divisional Director +44 (0)20 7204 6203 [email protected]

Nick Paice Divisional Director +44 (0)20 7204 6254 [email protected]

Malcolm Peckett Divisional Director +44 (0)20 7204 6193 [email protected]

Richard Sturgeon Divisional Director +44 (0)20 7204 1887 [email protected]

Tim Sullivan Divisional Director +44 (0)20 7204 6295 [email protected]

LONDON MARINE DIVISION DIRECTORS

89

CONTACTS

Chris Taylor Divisional Director +44 (0)20 7560 3337 [email protected]

Patrick Wilmot Divisional Director +44 (0)20 7560 3655 [email protected]

William Baynham Associate Director +44 207 560 3456 [email protected]

Gary Brand Associate Director +44 (0)20 7204 6121 [email protected]

Dave Clark Associate Director + 44 (0)207 234 4717 [email protected]

Katrina Davis Associate Director + 44 (0)207 234 4716 [email protected]

Wayne Godfrey Associate Director +44 (0)20 7204 1841 [email protected]

David Gibbs Associate Director +44 (0)20 7234 4718 [email protected]

Mike Ingham Associate Director +44 (0)20 7204 1864 [email protected]

Richard Lockwood Associate Director +44 (0)20 7204 6198 [email protected]

Jenny Mankelow Associate Director +44 (0)20 7204 6225 [email protected]

David Meadway Associate Director +44 (0)20 7560 3778 [email protected]

Deniz Nagatay Associate Director +44 (0)20 7234 4719 [email protected]

Anne Paige Associate Director +44 (0)20 7560 3058 [email protected]

Richard Pinkerton Associate Director +44 (0)20 7560 3027 [email protected]

Sophia Quentin Associate Director +44 (0)20 7560 3657 [email protected]

Edward Remnant Associate Director +44 (0)20 7204 6033 [email protected]

Paul Tingley Associate Director +44 (0)207 234 4720 [email protected]

Alex Vullo Associate Director +44 (0)20 7204 1891 [email protected]

David Waller Associate Director +44 (0)20 7560 3898 [email protected]

Andrew Albins Operations Director +44 (0)20 7560 3454 [email protected]

Nick Roblin Broker +44 (0)20 7234 4983 [email protected]

Angus Blayney Account Executive +44 (0)20 7204 8312 [email protected]

Melanie Buitendag Account Executive +44 (0)20 3425 3195 [email protected]

Liera Doyle Account Executive +44 (0)20 7204 8321 [email protected]

Amanda Gray Account Executive +44 (0)20 3425 3289 [email protected]

Michael Hutchins Account Executive +44 (0)20 3425 3406 [email protected]

Isabel James Account Executive +44 (0)20 7204 6210 [email protected]

Richard Landers Account Executive +44 (0)20 7204 1890 [email protected]

Wendy Needham Account Executive +44 (0)20 7204 1854 [email protected]

Lauren Osman Account Executive +44 (0)20 7204 1885 [email protected]

Clare Stewart Account Executive +44 (0)20 7560 3388 [email protected]

Brian Webster Account Executive +44 (0)20 7560 3037 [email protected]

Anneliese Campbell Account Handler +44 (0)20 7560 3378 [email protected]

Vincenzo Corsaro Technician +44 (0)207 560 3457 [email protected]

Joe Hassan Technician +44 (0)207 234 4734 [email protected]

LONDON MARINE DIVISION BROKER / ACCOUNT EXECUTIVE / TECHNICIAN

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

MARINE P&ICOMMERCIAL MARKET REVIEW | SEPTEMBER 2015

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