The Swedish Club is pleased to report that on January 23, 2019, S&P Global Ratings raised its insurer financial strength and issuer credit ratings on The Swedish Club to A- with stable outlook.
S&P reported that through disciplined underwriting and strong risk controls The Swedish Club has continued to record combined ratios close to 100% despite testing conditions in its main markets. It believes that these improvements, combined with a sturdy operating performance, should enable the Club’s capital position to remain resilient to market challenges over the next 24 months.
Lars Rhodin, Managing Director of The Swedish Club is delighted with the news: “This is an important step for The Swedish Club and will enable us to further develop our growth and diversification strategies around the world. As a mutual society this news is a testimony to the quality and support of our members and to the commitment and expertise of our team. Read more
The Swedish Club has launched its new edition of Claims at a Glance, a whistle-stop tour of cases and statistics taken from its experiences in Loss Prevention over the last three years. Claims at a Glance offers the Club’s own perspective on some of the real-life cases it has recently dealt with and provides updates on some of the Club’s key Loss Prevention publications from the last three years.
It makes interesting reading: in the time period studied the report finds that a pilot is on board ship during 30% of all collisions; 66% of all contacts and 58% of all groundings. It reports that 55% of all auxiliary engine claims occur within the first 1,000 hours of overhaul; and since the last report, you are now more likely to suffer a slip or fall on a bulk carrier than a container vessel or a tanker.
Claims at a Glance reviews both P&I and H&M issues ranging from cargo damage, navigational error and machinery through to piracy and injuries and illness. Read more
For the fourth year in succession The Swedish Club has announced a zero per cent general increase for the forthcoming P&I year.
The decision was made by the Club’s board in consideration of the general market view that premiums are not in proportion with expected claims outcome.
Lars Rhodin, Managing Director of The Swedish Club says: “In a number of shipping sectors the market remains weak and we have a commitment to support members at this crucial point. Read more
The Swedish Club has reported a combined ratio of 96 % for the first six months of 2018, in line with a policy of balanced growth and consistent performance. The Club is pleased to have now delivered an average combined ratio of below 100 % for ten years, despite a continued soft market for marine pricing and the third consecutive year of a zero general P&I price increase.
This solid underwriting performance balanced out prevailing weak investment conditions: an underwriting result of USD 4.7 million bringing the result to a surplus of USD 0.2 million before the agreed P&I discount of 5 %, effective 20 August 2018.
Free reserves are still on a high level of USD 210 million (after P&I discount effective 20 August 2018), enabling the Club to continue to grow according to plan. The Swedish Club currently insures some 2,700 ships on H&M and has doubled its volume in P&I over the last decade to in excess of 50 million gross tonnes – the inclusion of charterers’ liability bringing this total to over 80 million gross tonnes. Read more
The Swedish Club warns that vessel operators should always look to the long term, when specifying the type of engines to be installed across the fleet. Latest statistics from the Club show that vessels propelled by medium/high speed engines have a claims frequency 2.5 times higher than slow speed engines, with an average claims cost of close to USD 650,000.
Main Engine Damage, the latest loss prevention report from The Swedish Club, sheds light on an expensive category of damage that is all too frequent. Statistically a vessel will suffer between one and two incidences of main engine damage during its life time. Considering the costly consequences for ship owners and their hull insurers, it is important to identify the main causes of this damage and examine how these can be prevented.
The publication also includes loss prevention advice from the major engine manufacturers, MAN Engines and Wärtsilä.
The Swedish Club and Stena Line have completed a major Emergency Response Training Exercise, designed test how Stena’s own comprehensive emergency procedures integrate with those of the authorities and support services in the event of a major incident.
The round table exercise took place last week at the Swedish Sea Rescue Society headquarters, with over sixty expert contributors taking part. The drill, jointly planned and conducted by the Club and the Swedish Joint Rescue Coordination Centre (JRCC), tested the levels of cooperation required between the resources and authorities that would be at the centre of a mass evacuation from a passenger ferry in the Gothenburg area.
The Stena Line team was headed by Bjarne Koitrand, Technical Operations Director, Jörgen Lorén, Director and Senior Master, and Jesper Waltersson, Press and Media Relations Manager. Read more
An investigation by The Swedish Club into auxiliary engine damage has revealed that the majority of all damage takes place immediately after maintenance work. A key finding is that 55% of casualties occur within only 10% of the time between overhaul (TBO), corresponding to the first 1,000 hours or so of operation after overhaul. In most cases the damage occurs only a few hours after start up.
The report, Auxiliary Engine Damage, also finds that container vessels have a significantly higher claims frequency due to the larger number of installed engines on these vessels. In addition these engines have considerable output, leading to higher repair costs compared with other vessels.
Auxiliary Engine Damage, the latest report from The Swedish Club, has been created in response to the Club’s members’ concerns over damage to auxiliary engines – a significant segment of machinery claims, both in number and in cost.
The Swedish Club has celebrated the 35th Anniversary of its office in Hong Kong. Since the office was established, the Club has seen steady and consistent growth in its business in the area – both in terms of its full service product offerings and the tonnage insured.
The Swedish Club is also pleased to announce that Brian Png has been promoted to Deputy Managing Director for The Swedish Club in Hong Kong, as of 1 January 2018. Brian is well known to the Asian shipping community and joined The Swedish Club in 2009.
Lars Rhodin, Managing Director of The Swedish Club said: “When we established The Swedish Club in Hong Kong in 1982 we saw a great opportunity to establish a foothold in Asia. At that time Hong Kong had one of the busiest container ports in the world with sophisticated communications and an advanced banking infrastructure.
‘Cash is King’, and all too frequently shipowners can find themselves struggling to maintain cash flow following a serious incident, despite having a sound business and a comprehensive set of insurances. The Swedish Club has now designed an insurance solution, Collision Recovery Insurance (CRI), which provides upfront cover for the uninsured losses that are expected to be recovered from a third party following a collision.
“Collisions between vessels can prove to be costly and time consuming, leaving owners out of pocket for substantial amounts over a long period of time,” explains Lars A Malm, The Swedish Club’s Director, Strategic Business Development & Client Relations. “These losses consist mainly of deductibles and loss of earnings, and can have significant cash flow implications.”
CRI is available to any member entered for H&M Lead with the Club, and the Club’s expert team of claims handlers will manage and adjust the claim in-house. Under CRI, the cover is designed to pay the owner the amount expected to be recovered, and this then becomes subrogated to the recovery which will normally be finalised a considerable time after the collision.
Cargo fires occur so infrequently that awareness of the risk can slip under the radar. Yet such an incident on board a vessel can have disastrous consequences including loss of life or catastrophic loss of the vessel involved. With the average cost of a cargo fire at several million USD, cargo fires are not a risk to be overlooked.The Swedish Club, working in conjunction with Burgoynes, experts specialising in the investigation of fires, explosions and other major incidents, has produced a handbook, ‘Fire! A guide to the causes and prevention of cargo fires’, which can be used alongside the regulations to assist seafarers in their daily loss prevention efforts.
‘Fire!’ offers loss prevention advice on a number of incidents – focusing specifically on self-heating cargoes, but also examining those vessel fires caused by other sources such as cargo hold lights, fumigation, movement of cargo and of course smoking and hot work. It also highlights how different vessel types fare when the frequency of cargo fires is compared. Tanker figures are found to be relatively low, a testament to the tight regulation and safety culture that exists in this industry. On the other hand ro-ro figures are surprisingly high due to the non-homogeneous nature of the cargo they carry.
The Swedish Club returned a solid performance in the first six months of the accounting year, following the release today of its half year results. Despite its decision to offer a discount of 4 % to all P&I members 2017/2018, the Club delivered an operating surplus of USD 19.0 million for the period in question.
Free reserves are now at a top level of USD 213.8 million, reinforcing the Club’s commitment to meet members’ needs while also allowing for further growth of the business. The combined ratio of 94% continues to show a stable performance, below 100 % on an eight-year average.
Lars Rhodin, Managing Director of The Swedish Club, said: “Our growth remains firmly in line with our agreed plans and has exceeded 70 million GT combined owners’ and charterers’ P&I entries.”
Lars Rhodin, Managing Director of The Swedish Club, announced three new appointments to the board during the Club’s 2017 AGM held in Gothenburg on Thursday 15 June – the 145th since The Swedish Club was established in 1872.
Representing a cross section of the shipping industry, the three new board members come from different sectors and different countries, but share their commitment to shipping and to the pursuit of excellence.
New to the board are: Mr Chen Wei, Cosco Shipping Lines, Shanghai; Mr Jude Correa, Seaspan Ship Management, Vancouver; and Mr Lu Jian, Winning Shipping, Singapore.
Lars Rhodin welcomed the new board members, saying: “The Swedish Club represents members across the globe in almost every sector of shipping. We are delighted to see these new faces on our board and welcome the talents they will bring.”
Anatomy of an Accident, a new publication from The Swedish Club, provides a unique insight into the huge coordinated exercise that surrounds a serious vessel casualty. Illustrating just how easily an incident can escalate; the guide explores the various parties and processes involved in dealing with an emergency situation, and the complicated interplay between the cast of professionals involved in bringing an incident to a resolution.
Developed out of The Swedish Club’s Emergency Response Training programme, Anatomy of an Accident focuses on a realistic incident scenario run by the Club with participants from important maritime services and support sectors. This approach has been designed to test how operations are affected when dealing with an incident, reinforce who is responsible for which action during an emergency, and ensure that a shipowner’s emergency response plan works with the individual elements interacting and supporting one another should a real life crisis occur. Read more
Members of the World Maritime University enjoyed a whistle stop tour of the marine insurance realm when they visited The Swedish Club’s headquarters in Gothenburg last week.
Twenty students from countries around the world spent the day with some of The Swedish Club’s top professionals, where they were given an insight into key areas of the marine insurance business, and took the opportunity to quiz the Club’s staff on some of the complexities of this important sector of the maritime industry.
“We have been pleased to welcome students from the WMU for the last 18 years,” said Johan Kahlmeter, The Swedish Club’s Head of Claims, Marine. “We value the close relationship we have built up with the organisation over the years, and applaud the excellent work that it does in the field of maritime education.” Read more
The Swedish Club has launched a new addition to its portfolio, Rules for Charterers’ Insurance, which has been written to recognise the specific needs of charterers and to ensure that cover can be more easily tailor made to meet their individual requirements.
Rules for Charterers’ Insurance is broken into easy to read topics, enabling brokers and charterers to see at a glance the rules that apply to an individual situation. Future rule amendments can be incorporated in a logical and transparent fashion and not only is it now easier for brokers to find the data they require, but they can also simply refer to the handbook when completing insurance slips.
Lars Malm, Director, Strategic Business Development & Client Relations who headed up the initiative says: “The Swedish Club recognises the importance of charterers to our business and we are delighted to be able to now offer them information specific to their own requirements in a way that improves the user experience for all involved in supporting them.”
At the closure of the renewal season The Swedish Club is pleased to report performance in line with expectations and consistent with its strategy of balanced growth on a firm foundation.
Gross tonnage is anticipated to post a 4 to 5 % increase in this policy year, which is coupled with the 8 % growth experienced in 2016. This is the second year in a row The Swedish Club will deliver a zero percent increase to its members.
Lars Rhodin, Managing Director of The Swedish Club says: “We have closed this renewals period on a sound footing, enabling us to continue to support the needs of our members and to deliver on our promise of focusing on quality growth”.
The Swedish Club opened its doors to senior shipowners and brokers from across Asia last week, welcoming them to the Club’s latest Marine Insurance Seminar, specifically designed for the Asian markets.
The event was held in China, at the Zhuhai Marriott Hotel. Run over two days, almost 100 delegates representing China, Hong Kong, Taiwan, Singapore and Vietnam participated in the wide ranging programme.
Managing Director and Area Manager in Asia, Ruizong Wang, was delighted with the enthusiasm of the participants: “The Swedish Club works very hard to build strong, mutually beneficial business relationships with members of our local shipping and insurance communities,” he said. “We are one of the few insurers who provides such training to Members in Asia. Feedback from seminar attendees was very positive and we were pleased to learn that the initiative has proved of great value to them. “
The Swedish Club demonstrated a solid performance in the first six months of the accounting year with the announcement of its half-year results today. With balanced underwriting, the Club delivered an operating surplus of USD 11.2 million, resulting in a combined ratio of 100 % – an outcome of stable claims frequency and severity. This fortified the Club’s average over a seven year period to below 100 %. Read more
The Swedish Club has launched its latest publication, Claims at a Glance, which provides an insight into the full range of claims the Club has handled over the last five years, and is intended as a tool to reduce the frequency of incidents for both P&I and H&M claims. With prevention at its heart, it covers the key lessons learned across a range of real life situations, and provides a useful update of data contained in its most recent loss prevention titles: P&I Claims Analysis; Main Engine Damage; Navigational Claims; Ice – Advice for Trading in the Polar Regions; Heavy Weather; and Wet Damage to Cargo.
Claims at a Glance investigates the causes of a wide range of incidents and makes practical recommendations on how to prevent them. Read more
If your ship sinks, can you answer the questions the public wants answered? Are you and your team prepared should the unthinkable happen? Could a perfect media storm happen on your watch? These were the questions posed to an audience of shipowners, brokers and other key members of the shipping community by Lars Rhodin, Managing Director of The Swedish Club at its 144th AGM, held in Gothenburg on June 16th.
The theme of this year’s Club AGM – ‘What can be done when the damage is done? Can you make a bad case better?’ – was aimed at reminding members and guests that loss prevention doesn’t stop when there is an incident. Read more