The UK P&I Club reported continued growth at the end of the 2024/2025 financial year, with a 6.6% investment return increasing the Club’s free reserves to $494 million, despite a challenging policy year for the sector.
The rise in free reserves reinforces the Club’s position as one of the strongest members of the International Group, maintaining a Solvency Ratio of 242% and exceeding the S&P capital model’s 99.99% confidence level.
However, the 2024/25 policy year has been challenging for the Club, impacting underwriting performance. Major incidents such as the Dali collision in March 2024, along with several late-year claims, contributed to one of the most expensive pool years on record.
The Club’s combined ratio increased to 116%, compared to 107% in the previous policy year.
Despite this, the Club benefited from its diversified fixed premium portfolio, which delivered strong underwriting results. The charterers liability portfolio achieved a combined ratio of 83%, while the TMS fixed premium P&I business reported a combined ratio of 93%.
In February 2025, the Club completed a strong renewal process, with excellent Member retention for the 2025/26 policy year.
As of 20th February, the UK Club reported a 5.6 million GT increase in mutual tonnage, bringing gross owned tonnage to nearly 162 million GT. This growth is supported by a healthy pipeline of new tonnage commitments from existing Members for the 2025 policy year.
Andrew Taylor, Chief Executive, UK P&I Club, said, “The 2024/2025 policy year has presented significant challenges for both the UK Club and the wider P&I industry. Nonetheless, the UK Club’s robust investment returns and financial strength, coupled with our continued emphasis on fleet quality, enable us to maintain an exceptional level of service for our Members. This encompasses our market leading claims expertise, our safety & risk management offering, along with the comprehensive technical assistance and guidance we offer our members on a daily basis.
“Notwithstanding the challenges of the past year, as we move forward into 2025, we continue our positive journey and anticipate a strong year for the Club. Our focus is to continue providing the very best support to our Members and to help them navigate the increasing geopolitical, regulatory, and operational challenges they face.”
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