2020 Financial Statements – Britannia declares another strong set of results

15th May 202015th May 2020Phil Page

Highlights

Satisfactory year with an underwriting surplus of USD29.3m
Strong investment return (7%) yielding USD61.9m
Increase in total capital resources net of USD25m capital distribution
Steady tonnage growth during the year and a strong 2020/21 renewal
The Association is well placed to meet the financial and operational challenges of the COVID-19 pandemic

Financial overview

After a third consecutive renewal with a zero general increase, total calls and premiums for 2019/20 were down marginally on the prior year. However, lower claims incurred in the financial year resulted in a satisfactory underwriting surplus of USD29.3m and a net loss ratio of 79.9% (2018/19 – 83.8%). The well diversified investment portfolio produced a strong return of 7% overall, with equities being the strongest performer at 16.5%. All asset classes produced a positive result and the overall investment gain was USD61.9m, nearly twice the long-term target.

Capital resources grew by USD31.4m, after taking account of the USD25m capital distribution made to mutual Members in the year and remain above the economic capital target set by the Board.

In the period immediately after the year end, investment markets were impacted by the uncertainty caused by the COVID-19 pandemic and much of the investment gain made during the year was reversed. However, the Association’s strong financial position leaves it well placed to face the challenges posed by the uncertain global economic conditions likely to be experienced in the months and years ahead.

BRITANNIA ANNOUNCES NEW EXCLUSIVE CORRESPONDENT IN NEW YORK

9th January 2020Phil Page

Britannia P&I has underlined its commitment to the North American market by establishing a new exclusive correspondent, B Americas P&I, to be based in New York.

B Americas P&I will be headed by MICHAEL UNGER, a leading maritime lawyer with extensive litigation and arbitration experience, who has been known to the Club for many years. Further recruitment is underway, with the office to be operational by the beginning of April.

B Americas will boost Britannia’s global footprint, enhancing the Club’s ability to provide a round-the-clock claims service to all its Members, while also focusing on the needs of Britannia’s North American Members.

This development follows other recent steps taken by the Club, including the opening of new offices in Denmark and Greece and the strengthening of its teams in Hong Kong, Japan and Singapore.

Welcoming the move, ANDREW CUTLER, Britannia’s CEO, said

“Following the expansion of our regional hubs, the New York office enables us to enhance Britannia’s service to Members wherever they are in the world”.

BRITANNIA P&I OPENS A BRANCH OFFICE IN COPENHAGEN

17th December 201917th December 2019Phil Page

On 1 January 2020, Britannia P&I’s Exclusive Correspondent in Denmark (B Denmark P&I), will become a full branch office and be renamed TR(B) Denmark.

The new branch office will continue to be headed by Mr. Michael Boje-Larsen, a lawyer with considerable experience in maritime law, including P&I and FD&D cover. Michael is supported by Rishi Choudhury, an Associate Director of Britannia P&I, a FD&D specialist who has been working with the Club since 2006. Further expansion of the team is planned for early 2020.

Denmark is an important market for Britannia P&I and accounts for approximately 16% of its entered tonnage. Having a full branch office in Copenhagen further enhances service delivery to its Members whilst enabling the Club to consider other business opportunities in the region.