Subsequently, S&P has published a new Insurance Rating Methodology (IRM) which revises the way it rates insurance organisations, including ourselves. The application of the new IRM has maintained our rating of BBB but now attaches a negative outlook.
Ian Gooch, CEO of the club's managers (A Bilbrough & Co Ltd) says:
"Naturally we are disappointed with the revised rating which, we understand, is mainly attributable to our 2018/19 financial results. However, our capital position remains strong, with year-end free reserves of US$168.8m. Our balance sheet is robust on an absolute and historical basis and compares favourably with other IG clubs. Additionally, our Solvency Financial Condition Report confirms we retain a healthy solvency ratio. I am also pleased to see we've achieved much positive progress in terms of revenue and tonnage growth over the past 12 months. On those strong foundations, I have every confidence that the club will continue to deliver high quality, dedicated P&I support to our members and assureds".
We have enjoyed a "stable outlook" for many years and so have questioned S&P over the application and process of its new methodology. We believe there are a number of questions that require clarification and, as club managers, we will continue to engage them with a view to restoring our previous rating.
Insuring a diverse range of shipowners and charterers, The London P&I Club is one of the world's leading Protection and Indemnity Associations, providing P&I, FD&D and War Risks cover to our international membership. From tailored solutions to flexible insurance packages – all of our work is directed at meeting our members' specific needs.
We are proud of our position within the International Group of P&I Clubs, where we play a key role in coordinating and promoting the collective, global strength of the P&I industry on behalf of the world's shipowning community.
At the London P&I Club, we are committed to providing the best possible service to our members. High quality, responsive support is fundamental to the way we work. The interests of our members are protected by a specialised team with a world-wide reach, including experienced lawyers, former mariners and insurance professionals. The day-to-day operation of the Club is performed by our managers, A Bilbrough & Co Ltd.
We have offices in London, Hong Kong and Piraeus; in Seoul we co-operate on a range of P&I activities with J-Ship Marine Co., Ltd - and we have a global network of correspondents, lawyers and surveyors, all of which ensures our provision of a high calibre 24-hour service to our members, wherever they are based.