Britannia returns more funds to Members and moves away from a General Increase

 

The Britannia Steam Ship Insurance Association Limited declares a USD15 million capital distribution to its mutual Members

 

Highlights

  • Britannia remains in robust financial health, allowing a further capital distribution of USD15 million to be paid to P&I mutual Members
  • Going forward, Members’ renewals will be underwritten on their individual records, with Britannia moving away from the concept of a General Increase (GI) for both P&I and FD&D

 Overview

In August 2019, S&P re-affirmed Britannia’s A (stable) rating with capital well above the AAA level and an ‘exceptional’ liquidity rating.

However, the 2018/19 policy year was challenging, with lower than projected investment returns and claims being higher than expected.  Claims continue to be high, in particular those in excess of USD1 million.  In addition, all insurers in the P&I sector have seen rates declining, with Britannia anticipating an underwriting deficit for the current policy year, with an expected combined ratio of 108%.

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