Tougher times lie ahead for the protection-and-indemnity clubs with premium income falling and claims becoming more expensive.
The Standard & Poor’s (S&P) ratings agency predicts underwriting could tip into loss for the policy year that ended on Wednesday, although it is expecting a strong investment result to be reported by several clubs, ensuring overall profitability.
Despite market pressures, S&P remains generally upbeat about the P&I mutuals, noting that restrictions on price competition between the 13 International Group clubs help insulate them to at least a degree from wider insurance market pressures.
