The Swedish Club has announced a 2.5% General Increase for 2015, a move which continues to reflect the balanced approach adopted by the Club to the needs of its members and the demands of the global shipping market. This action consolidates the work it has undertaken in 2014, with, once again, a positive underwriting result and the forecast of a bottom line surplus for the full year 2014.
The Board meeting in London saw Lars Rhodin, Managing Director of The Swedish Club, emphasise the importance of its strategy of slow steady progress within a framework of gross prime growth, positive financial results and an increase in gross tonnage greater than global developments.
Mr Rhodin told Board members: “The demographics of the Club’s growth in P&I tonnage during 2014 was in line with our considered strategy of consolidation and evolution. The P&I book now stands at 62 million GT, including Charterers’ entries. Our policy of diversification and responsiveness to the needs of the market is continuing to pay dividends to the Club and its members.”
The Swedish Club Board agreed the 2.5% General Increase plus changes in the International Group’s reinsurance costs; a 5% General Increase for Freight, Demurrage and Defence due to an accelerating inflationary pressure on legal costs; and an increase in crew deductibles of $1,000 for P&I. These moves reflected increases in ship owner liabilities and general claims inflation.
A slight rise in the frequency of claims was reported, but this was countered by a decrease in their severity.