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2020 Financial Statements – Britannia Declares Another Strong Set of Results

Highlights

• Satisfactory year with an underwriting surplus of USD29.3m
• Strong investment return (7%) yielding USD61.9m
• Increase in total capital resources net of USD25m capital distribution
• Steady tonnage growth during the year and a strong 2020/21 renewal
• The Association is well placed to meet the financial and operational challenges of the COVID-19 pandemic

Financial overview

After a third consecutive renewal with a zero general increase, total calls and premiums for 2019/20 were down marginally on the prior year.  However, lower claims incurred in the financial year resulted in a satisfactory underwriting surplus of USD29.3m and a net loss ratio of 79.9% (2018/19 – 83.8%).  The well diversified investment portfolio produced a strong return of 7% overall, with equities being the strongest performer at 16.5%.  All asset classes produced a positive result and the overall investment gain was USD61.9m, nearly twice the long-term target.

Capital resources grew by USD31.4m, after taking account of the USD25m capital distribution made to mutual Members in the year and remain above the economic capital target set by the Board.

In the period immediately after the year end, investment markets were impacted by the uncertainty caused by the COVID-19 pandemic and much of the investment gain made during the year was reversed.  However, the Association’s strong financial position leaves it well placed to face the challenges posed by the uncertain global economic conditions likely to be experienced in the months and years ahead.

Claims

The aggregate value of retention claims incurred during the 2019/20 policy year was in line with expectations and was USD20m lower than the previous year at the equivalent stage. The number of notified claims was 4% lower than in the previous year. Whilst claims within the International Group Pool were higher than recent policy years reserves held against Britannia’s share of those claims have been set at a level sufficient to absorb any further deterioration.

Chairman’s statement

Commenting on the results for the year ended 20 February 2020 and the outlook for the current year, the Association’s Chairman, Anthony Firmin, stated:

“Britannia continues its mission to be the finest provider of P&I and FD&D insurance and for 2019/20 has achieved another strong set of results. The Association’s robust operating model and financial strength also allows it to support our Members through further investment in service, including IT and our regional hubs.  We recognise that since 20 February 2020, COVID-19 has had a material impact on the world economy and the maritime sector.  Despite the majority of our staff worldwide currently having to work from home, we are maintaining ‘business as usual’ standards of service and we do not anticipate that the effect of COVID-19 will have a material impact on Britannia’s own claims for the 2020/21 policy year.

Britannia’s Review of the Year – 20 February 2020 is available on the Association’s website.

Contacts
Jo Rodgers, CFO, Tindall Riley (Britannia) Ltd:            +44 (0)7921 233714
Andrew Cutler, CEO, Tindall Riley (Britannia) Ltd:         +44 (0)7738 997329

*The Association benefits from a reinsurance contract with Boudicca Insurance Company Limited.

Source:
https://www.allaboutshipping.co.uk/2020/05/15/2020-financial-statements-britannia-declares-another-strong-set-of-results/

The UK P&I Club (“The UK Club”), a leading provider of P&I insurance and other services to the international shipping community, announces its financial results for the year ended 20 February 2020.

The Club’s financial position remains strong as free reserves increased by $54 million to $559 million as at 20 February 2020. This was driven by exceptional investment returns of 9.6% for the year. The Club continues to meet all its regulatory capital requirements and Standard & Poor’s reaffirmed the Club’s A (Stable) rating in December 2019.

The Club benefited from reasonably good large claims experience for the year, however premium rates have been insufficient to cover the cost of claims and expenses. Members have benefited from significantly reduced rates across the P&I sector over recent years, leading to the Club’s combined ratio of 120% for the year, which continues to be above the Club’s acceptable range. Although the cost of large claims is high, there remains the need for future action on premium rates.

The underwriting result for the year demonstrates the importance of scale and strong capital. The Club remains financially strong with Free Reserves increasing $54 million to $559 million and an A (Stable) rating from S&P.
Source: UK P&I Club

The International Seafarers’ Welfare and Assistance Network (ISWAN) has welcomed Bond TM as the primary partner for its new online toolkit for superyacht crew.

A survey conducted by ISWAN in 2018 found that 82% of superyacht crew experienced low crew morale sometimes, often or always, and 55% of female respondents found accessing mental health care to be an occasional or regular challenge. In order to be more visible to superyacht crew in need, ISWAN has been fundraising for Yacht Crew Help – a new online toolkit to provide crew with a direct line to free, 24-hour emotional support, guidance, and useful health and welfare resources.

Alongside gallant fundraising efforts from Colin Squire of Yachting Matters and Captain Brendan O’Shannassy, President of the ISS Captain’s Committee, Bond TM have contributed a generous €10,000 to help make the new platform a reality.

Will Faimatea, Director and Founder of Bond TM, said: ‘Having previously been crew for many years I recognise the topic of mental health is an issue like it is everywhere but obtaining support and assistance whilst you are crew can be difficult. Crew wellbeing is an area that can easily be overlooked.

‘After reading an article by Colin Squire about the drive to raise funds for Yacht Crew Help I spoke to Brendan O’Shannassy and Caitlin Vaughan whilst they were on the path of this project and they explained what they were trying to achieve. As well as the helpline this project increases awareness in the industry that the mental health and wellbeing of crew is just as important as it is in other walks of life and everyone should learn to recognise any warning signs for themselves and in others and do what they can to assist.

‘With Yacht Crew Help crew will not have to search too far to obtain help if they think they may need it and the fact that they know help is close by may offer support and comfort. Contributing back to the yacht industry that I am proud to be part of is in itself rewarding but what makes this even more worthwhile is being able to contribute to ISWAN to start Yacht Crew Help for those who may need it.’

Captain Brendan O’Shannassy said, as an experienced Captain, he recognises the greatest challenge at sea is creating a safe environment where crew’s mental health and wellness are core values: ‘The awareness of this priority across the maritime industry is not where it should be, and neither are the support and educational tools. The ISWAN initiative is a huge step in the right direction to improve crew wellness, resilience, mental health and in turn performance.’

ISWAN’s Project Manager Caitlin Vaughan said: ‘We have been so fortunate to be supported by wonderful people and organisations within the superyacht industry who recognise the need for accessible mental health support for crew. We’re delighted to be partnering with Bond TM whose industry expertise will be invaluable to the development of the toolkit.’

Further generous pledges are expected to be announced in the coming weeks, including the final amount raised by a fundraising effort from Burgess. ISWAN would also like to thank MHG Insurance Brokers and wilsonhalligan who provided the initial support needed for ISWAN’s 2018 research and widely acknowledged report on The Welfare of Superyacht Crew.

Fundraising continues to support the operation of ISWAN’s helpline for seafarers and efforts to address the recommendations in ISWAN’s superyacht crew welfare research report. Companies, organisations and individuals wishing to show their support can do so at yachtcrewhelp.org.

Yacht Crew Help would not have been possible without the support of Bond TM and ISWAN looks forward to working in partnership on this new platform to support superyacht crew worldwide.

Source:  https://www.seafarerswelfare.org/

Source: British Ports Association, 2020-05-20

The Loss Prevention team at UK P&I Club has launched a new series of Risk Awareness guides which identify the myriad risks and threats onboard, and the controls that can be implemented to mitigate them.

The series of guides are being released over the course of 2020 and will cover a vast range of vessel types, including tankers, bulk carriers, containerships and passenger vessels.

The first in the series ‘Risk Awareness – Bulk Carriers, General Cargo & Reefers’ , an aid to risk identification and loss reduction, was recently published and identifies the common risks posed to these vessel types and methods to avoid or minimise them.

The guide provides a colour coded checklist to denote the various elements in the risk awareness process:

• Threat – a variable that if not controlled could cause a P&I incident
• Consequence – the monetary cost to the Club or Member
• Control – measures which reduces the possibility of a ‘threat’ causing an incident

The series of guides provide the ‘controls’ and key points the UK Club’s Risk Assessors look for when inspecting a vessel and allows all Members to carry out similar checks on the ‘threats’ and ‘controls’ to make sure all vessels have a good risk profile. Each guide in the Risk Assessment series deals with an area of risk, whether it is personal injury, collision, pollution and each area is sub-divided into ‘threats’, ‘consequences’ and ‘controls’.

The first guide on Cargo Claims looks at threats including wet damage, cargo securing, theft, cargo temperature, contamination/infestation, ventilation and fire damage. Once scores have been attributed to these threats, controls such as damage limitation and emergency procedures, as well as the adequacy of emergency equipment and record keeping checklists are provided to mitigate claims.  The guides aim to provide ‘controls’ to ensure ‘threats’ are contained and ‘incidents’ do not happen.

UK P&I Club operates a full-time, worldwide loss prevention team, servicing its Members and wider maritime industry through proactive and inclusive loss prevention support. The team provides technical and operational advice as well as participating in crew seminars and training days.

To download the first Risk Assessment guide in the series, please visit: https://www.ukpandi.com/loss-prevention/article/risk-awareness-bulk-carriers-general-carriers-reefers-151818/