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The American Club announces annual report for 2023

The American Club announces annual report for 2023 | Insurance Business UK

Previous year was marked with significant transition

The American Club announces annual report for 2023

Marine

By Kenneth Araullo

The American Club has published its Annual Report and Accounts for 2023, marking a year of significant transition as disruptions from recent years began to subside.

Accoridng to the report, tonnage and premium saw substantial growth, and pricing power improved. Claims for members’ own accounts moderated, though exposure to other clubs’ pool losses increased from the unusually low levels of the previous year.

Investment returns were solid, reflecting a market recovery from the lows of 2022. Loss prevention and sustainability initiatives continued vigorously within a post-pandemic, seafarer-focused and evolving claims environment.

The club’s compliance processes adapted to meet the increasing challenges associated with navigating multi-jurisdictional sanctions amidst ongoing and new geopolitical turmoil. Eagle Ocean Marine also made progress, maintaining careful risk selection and prudent premium rates. Supplementary calls were levied to strengthen the club’s finances.

Despite ongoing regulatory demands and geopolitical uncertainties, the American Club stated that it is optimistic about the future.

The positive renewal season for 2024, despite challenges including an S&P rating downgrade, reflects a steady transition into more stable operating conditions.

The club also released an outline for its 2023 highlights:

  • Record levels of premium and tonnage
  • Claims environment remains challenging with moderated own account performance and a return of deterioration in pool claims
  • Geopolitical turmoil in Ukraine, Israel, and the Red Sea challenged trade routes and complicated the regulatory landscape
  • 2023 performs better than 2022 as the generally elevated claims environment is tempered by adequate premium levels
  • International Group Pool exposures increase from the drastically low levels of 2022
  • Investments see an 8% return, up from the historical lows of 2022
  • Final call of 25% and closure of the 2020 policy year
  • Policy year 2021 faced significant challenges due to social inflation and pandemic-related reinsurance costs, leading to an additional 40% supplementary call
  • Eagle Ocean Marine enjoys stronger performance and stable market presence
  • Standard & Poor’s adjusts the Club’s rating to BB+/Stable after a revision of the rating model
  • Loss prevention and sustainability remain priorities in a seafarer-centric and evolving claims landscape
  • 2024 renewal marked by stability with a 93% retention rate; rising reinsurance costs continue into the new policy year
  • 2023/2024 policy year combined loss ratio at 99%

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