The UK Defence Club, the leading provider of FD&D (legal costs) insurance to the maritime industry, announces its financial results for the year ended 20 February 2015.
· 3,700 ships covered by the UK Defence Club
· Total assets of £56.5 million
· Combined loss ratio of 94%
· Free reserves £28.4 million
· 167 million GRT, increase of 5% in owned tonnage
· Net claims incurred, including claims provision, increased to £13.1m from £10.2m in 2013/14
· 2015 Renewal – 0% General Increase and Introduction of Continuity Credits
Michael Lykiardopulo, Chairman of the UK Defence Club, says: “I believe that by announcing a 0% General Increase for the 2015/16 policy year, combined with the introduction of a continuity credit scheme, the Board evidenced very clearly that the finances of the Association are strong and that continuing to support the Membership is paramount. We have continued to build on our solid financial footing with free reserves increasing to £28.4 million. At the same entered tonnage has risen to over 167 million GRT.
This result reflects the confidence our Members have in the Club and the value they place in our industry leading position, particularly in these uncertain times.
The demise of OW Bunkers highlights how the Club supports its Members when claims manifest themselves in different and unexpected ways. We are actively assisting Members, as far as we can, who may be exposed to disputes surrounding this issue. This is an important demonstration of our service commitment and the support we give to our Members when disputes arise.“
Daniel Evans, Club Manager of Thomas Miller Defence, says: “The proactive management of disputes and the value of the legal costs insurance provided by the Club are evidenced by its involvement in high profile, high value litigation. We remain focused on supporting our Members and maintaining our position as the leading provider of FD&D insurance to the maritime industry.”