The American Club reports strong P&I renewal with target 7% premium rise achieved

The American Club has reported a strong renewal, achieving targets set by the Board for 2025. While gross tonnage for the Club’s Class I (mutual P&I) entries was virtually unchanged at the turn of the renewal at Noon GMT 20 February 2025, premium income increased by over 7% at the renewal. Its Class II (mutual FD&D) portfolio was renewed on a similar basis, while its Class III (charterers’ liability) business is poised to increase by about 5% in 2025.

Eagle Ocean Marine, the Club’s fixed premium facility, which serves the operators of smaller vessels in local and regional trades, carries an overall historical net loss ratio of 68%. The 23/24 facility year is running below 40%, while the current 24/25 facility year is relatively benign but still in an active period of development as the facility year runs to July of each year.

The Club’s Board mandated target increase in expiring premium for the 2025/2026 policy year was met as the cash rise year on year on renewing business was 7%. Supporting the premium position were deductible and term changes calculated to have a value of another 4% against net premium, resulting in an overall increase of 11% on renewing premium.

Speaking in New York this week, Tom Hamilton, the Chief Underwriting Officer of SCB, Inc., the Managers of the American Club, said: “The 2025 renewal underscores the value Club members place on the high level of service provided by the Club, evidenced by a business retention rate of 94% during the renewal. The American Club’s focus remains on rate adequacy and sustainability particularly in response to the emergence of Pool claim activity during 2024.

“Importantly, the American Club commences the 2025 policy year in a solid position with premium income for P&I, FD&D and charterers’ liability classes, along with Eagle Ocean Marine, in excess of $130 million, and we are encouraged by the expectation for growth across all classes over the course of 2025/2026. We are grateful to our Members, new and existing, our producing brokers, our Board of Directors, and of course, to our executives throughout the world, all key to the Club’s continuing resilience.”