Britannia announces a further USD10m Capital Distribution and no General Increase for 2019/20

At its Members’ Representative Committee and Board Meetings on 16 October in Hamburg, Britannia P&I Club announced that for 2019/20 there would be no General Increase to its advance call for P&I Members. In addition, Britannia continues to set its release calls for open policy years at nil.

A further USD10m capital distribution was also announced to P&I mutual Members based on premium for ships on risk at midnight BST 16 October 2018.

Likewise, there will be no General Increase for 2019/20 to its advance call on FD&D. To further support its FD&D Members, from 2019/20 Britannia will cap at USD150,000 individual Members’ one-third contribution towards the cost of any FD&D claim.

“Britannia’s strong capital position means that, since October 2016, we have been able to return USD75m in deferred call waivers and capital distributions to Members, while seeking no General Increase in P&I for the past three years or FD&D for the past five years,” said Nigel Palmer OBE, Chairman of Britannia.

“In the same period, we have enhanced our service offering in Asia whilst establishing a presence in Greece and Denmark. This underlines the Club’s commitment to its Members by continuing to provide the highest quality service.”

“Standard & Poor’s have recently reconfirmed Britannia’s strong financial performance and positive capital position with an A (stable) rating. Prudent yet proactive financial management by the Managers has enabled both Members and the Association to benefit from positive returns” said Jo Rodgers, CFO of Tindall Riley (Britannia) Limited.

 

Britannia Announces Team for Greek Office Opening

Britannia has finalised its Greek office opening plans by announcing the team that has recently taken up residence in Piraeus, Greece.

The office will be tasked with enhancing service delivery to its Greek members and is part of an ongoing expansion of the Club’s regional hub network that will also shortly see the opening of an office in Singapore in addition to the upgrading of its presence in Japan and Hong Kong, as well as the recent opening of an exclusive Correspondent in Copenhagen.

The Greek office, located in the iconic Ionian Building off Akti Miaouli, will be headed by David Harley who recently returned to the London office having established and worked for over 5 years as head of Britannia, Hong Kong.

David has extensive P&I and FD&D claims handling experience and will be assisted by newly appointed Konstantinos Samaritis, who joins from a leading Greek shipowner, having previously worked for both Standard and Skuld Clubs’ Greek operations.

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S&P Global Ratings affirms Britannia’s ratings as ‘A’ (stable)

S&P Global Ratings, the world’s leading independent credit ratings provider, has affirmed its ‘A’ rating on the Britannia P&I Club. It added that the outlook remains stable over the next three years based on its view that the Club’s current capital buffer well exceeds S&P’s ‘AAA’ level requirement.

S&P based its findings on Britannia’s extremely strong level of capitalization and its strong market position in the P&I mutual business, where it has “a track record of quality in its underwriting” and added that the Club “enjoys strong returns”.

The report also notes that with a five-year average net combined ratio (2014-2018) of 88.9%, Britannia’s operating performance has exceeded its long term break-even target and the peer average during this period.

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Britannia Opens Exclusive Correspondent Office in Copenhagen

Britannia underlined its commitment to the important Danish P&I market by hosting a reception to mark the official opening and launch of its newly appointed Exclusive Correspondent based in Copenhagen, B Denmark P&I.

The reception was held at B Denmark P&I’s offices in the heart of Copenhagen’s shipping district, Hellerup. In attendance was John Ridgway and Andrew Cutler, Chairman and Chief Executive Officer respectively of Tindall Riley (Britannia) Limited, Managers of The Britannia P&I Club, along with B Denmark P&I Managing Director, Michael Boje-Larsen.

Mr Boje-Larsen is a lawyer with considerable experience in maritime law and has previously worked both for another IG Group P&I Club and in private practice. He has worked for over 20 years in the insurance sector and was seconded to open a competitors Greek office in the early 2000’s, adding a unique set of skills to the team.

Britannia opened the office in Copenhagen to enhance its service delivery and growth potential in Denmark which currently accounts for 16% of its business. The expansion into Denmark also reaffirms previous comments from the Club about having offices in strategic locations to ensure the Membership receives the best service possible in a timely manner.

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Tindall Riley Team Raise Money by Walking 56 Miles Along the Thames Path

A group of staff from Britannia’s managers, Tindall Riley, walked 56 miles of the Thames Footpath Route to raise money for the Marine Conservation Society with a mission to complete the walk within 24 hours.

13 staff set off from Cookham, Berkshire, at 6pm on 12th July and walked through the night, before being joined by 13 more colleagues at Hampton Court to finish the remaining 25 miles to London Bridge. Nearly all participants completed the challenge within the time limit, with one group of six doing the entire walk in under 20 hours.

The team raised £2,255 via its JustGiving page and with Tindall Riley pledging to match the amount, a total of £4,510 has been raised for this deserving charity which helps protect the planet’s seas, shores and wildlife.

“I would like to congratulate my fellow colleagues who took part in this challenge and raised a huge sum of money for such an admirable cause,” said Andrew Cutler, CEO Britannia.

“Cleaning up our oceans is vital work and is such an appropriate charity for our team to have chosen, particularly as the IMO is rightly focussing on regulations designed to minimise the maritime industry’s negative impact on our oceans,” he continued.

If you would like to find out more about the work that the Marine Conservation Society does, simply access the website: https://www.mcsuk.org/ and get involved as there are plenty of ways that volunteers can help.

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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