North P&I Club will apply a 10% general increase to its members at next year’s policy renewal, to counter economic uncertainly and inflationary pressures.
The figure is the same as that announced by the Standard Club, with which North P&I will merge next year.
So far 10% increases have been popular, with seven out of 13 members of the International Group of P&I Clubs opting for that figure.
The club, based in Newcastle, northeast England, said claims are down but it is concerned about the economic fallout from the war in Ukraine and mounting inflation.
Its investment portfolio is also down 6.36% in the year to the end of October.
Chief financial officer Ed Davies said the club’s investments will recover.
“Our underlying portfolio remains fundamentally sound and is ideally placed to benefit once stability returns to the markets,” he said.
Chief underwriting officer Thya Kathiravel added: “Despite recent rises in mutual premium rates, it is unlikely that improvements in our underwriting performance and the success of our diversified business lines will offset inflationary pressures and rising costs across the sector.”
Next February’s renewal will be North P&I’s last before it merges with the Standard Club to create NorthStandard.
Chief executive Paul Jennings said the merger will create a scale of business that will be able to cope better with the volatility of the P&I markets.
“Establishing NorthStandard will support our aim of smoothing the volatility of year-on-year market fluctuations to deliver predictability and stability over coming years in our operational, financial and technical results,” he said.
