Britannia declares another USD20m capital distribution to Members

Highlights:

  • Britannia reports another strong financial performance, with an aggregate USD80.6m post-tax surplus for the year.
  • The Board approves a further USD20m capital distribution, to be paid to P&I mutual Members with ships on risk as at midnight 15 May 2018.
  • Members have now benefited from USD61m of deferred call waivers and capital distributions since October 2016.

Financial overview:

In the past 18 months, Britannia’s Members have benefitted from USD61m (or 32.8% ETC) of deferred call waivers and capital distributions, as well as nil General Increases for both P&I and FD&D calls for 2017/18 and 2018/19.   Even allowing for these distributions, S&P has confirmed Britannia’s rating of A (stable), AAA capital and exceptional liquidity (up from strong).

The Association’s ability to continue to assist Members is a consequence of repeated strong underwriting results; with 2017/18 seeing a USD64.6m underwriting surplus and a USD48.6m gain on its investment portfolio. Overall, the Association’s balance sheet reserves rose by USD50.6m. This is after taking into account the USD30m capital distribution made to Members during 2017. [The surplus assets in Boudicca (which are available to meet future claims) stood at USD211.6m.]

Given this further strengthening of the Association’s capital position, the Board decided to declare another USD20m capital distribution, payable to mutual Members with ships on risk as at midnight GMT 15 May 2018 (pro rata based on premium). This immediate benefit to Members re-affirms the Association’s commitment to mutuality, while reflecting its continuing financial strength which provides a high degree of security to its Members. The Board will review the Association’s financial position further at its October meeting.

Claims

While higher than in the 2016/17 policy year (a remarkably light one for claims), claims during the 2017/18 policy year were well within projection.   Large claims (those expected to cost the Association USD1m or more) have remained consistent in number but returned to the higher average seen in earlier years. IG Pool claims (Britannia has no Pool claims in 2017/18) have also seen an increase, with a number of high profile casualties. Nevertheless, they remain within projection.

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Britannia Appoints New Exclusive Correspondent in Taiwan

In a move to maintain the highest possible service levels to its Members in Asia, Britannia P&I has recently made two important changes.

In April last year, Britannia’s Managers, Tindall Riley, acquired the club’s Exclusive Correspondent in Japan, Cornes P&I.

Renamed Tindall Riley (Britannia) Japan, the acquisition demonstrated the importance of Japanese shipowners to Britannia. “The renaming of the Tokyo office was the immediate change, with the office continuing to provide Britannia’s Japanese Members with outstanding levels of service” said Andrew Cutler, CEO Britannia.  He added that “2018 will see further initiatives in Japan, which we will announce in due course”.

In another development, and after many years of representing Britannia in Taiwan, Capt. Mike Chiang, the founder of Chiang Marine Services (CMS), has decided to retire.

CMS’s Exclusive Correspondent role is therefore passing to a successor company, B Taiwan P&I Correspondent Co., Ltd. which will be headed by Ms Euly Luo who is well known to Britannia’s Membership in Taiwan, having served with CMS for 30 years. As is to be expected, handover has been conveniently fixed to happen at noon on 20th February 2018.

The new company details are:

B Taiwan P&I Correspondent Company Limited

Room 806, No.205, Dunhua South Road, Section 1,

Taipei 10690, Taiwan, RoC

Telephone: +886 2 2731 8000

Fax: +886 2 2731 8021

Email: newmatter@btaiwan.com.tw

Ms Euly Luo     Mobile: +886 932 143445       Email: euly@btaiwan.com.tw

“The CMS team provided a quality service to Britannia’s Members over the years, helping us enjoy good business in Taiwan. We will maintain those high standards with the new correspondent while wishing Capt. Chiang a healthy and happy retirement,” said Andrew Cutler.

Britannia P&I Hosts Asian Members’ Forum in Hong Kong

Following Britannia’s P&I European Members’ Forum in Athens earlier this month, the Club also hosted an Asian Members’ Forum on 21st November in Hong Kong.

These regional Forums demonstrate the Club’s strategy of providing Members with a local personalised service, backed by a global presence in the market.

The Asian Members’ Forum outlined Britannia’s strategy, which has included the Club strengthening its presence in the region, with its Managers having recently taken over a longstanding Exclusive Correspondent with offices in both Tokyo and Kobe, Japan (renamed Tindall Riley (Britannia) Japan Ltd).

More announcements will follow in the coming months involving the Club’s initiatives in Hong Kong and Singapore.

“The Asian Members’ Forum is an important event given that half of our membership is based in the region. Enhancing our personalised service to Members by having dedicated Britannia owned local offices in key territories is vital,” said Andrew Cutler, CEO of Britannia and the Managers.

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