3 NOVEMBER 2026 – At the half year stage, the Club reported a Combined Ratio of 100.1%, with an underwriting deficit of US$ 0.2m, compared with 99.6% and a surplus of US$ 0.6m at the same stage of the prior year.
2026 Financial Year
The number of claims from the Club’s Membership for the 2026 year has been stable although the total quantum of Member claims is higher than for the equivalent period in the prior year. Since year-end, 2025 has developed favourably, offsetting the increase in claims in the current year. The number of claims reported to the International Group Pool on a calendar year basis is higher than in 2025, but the quantum is lower. A number of those claims are yet to be fully estimated.
The Club has seen good growth in both premium and entered gross tonnage – with premium income written up by over US$ 15m on the same period last year at the half year stage. We have been pleased to welcome new Members into the Club and are further encouraged by half of that income growth coming from our existing Membership. With premium income up and claims developing broadly in line with budget, we expect to deliver a year-end Combined Ratio very close to break even.
From an investment perspective the year to date has been favourable despite the impact of rising interest rates. A positive investment result is therefore forecast, albeit not at the levels we experienced in 2024 or 2025, and with the risk of increased market volatility in the coming weeks following the US mid-term elections.
2027 Financial Year
Whilst 2026 has been a very good year for growth we expect that the current conflict in the Middle East, and the resulting impact on inflation, will impact both Members and the Club. Notwithstanding these headwinds we also expect that a soft reinsurance market and increased competition will temper growth.
Inflation will continue to impact claims costs and given the impact of the Baltimore bridge claim, an increase in reinsurance costs is expected. Whilst other Clubs pass the cost of the IG program directly on to their membership our policy has always been to factor those into our renewal proposals, quoting a premium that is inclusive. Given the likely larger increase for 2027, and the potential allocation being weighted to container vessels, the Club will be absorbing quite a significant additional cost in some cases.
2027 Renewal
When the Board met on 3 November 2026 it was noted that prior year claims were developing in line with budget and, at the end of the third quarter, the Combined Ratio for the 2026 financial year was slightly under 100%.
Despite the impact of inflation, and the cost of the International Group reinsurance program increasing, the Board resolved that no General Increase would be applied for 2027. The expected increase in reinsurance costs would be absorbed. This decision reflects the strong capital position of the Club and an acceptance that some slippage in the Combined Ratio above breakeven could be accepted for 2027 in support of the Membership. This is consistent with the Club’s wider strategy of only ever asking our Members for increases in premium when absolutely required.
As in previous years, the Managers will also review individual Members’ claims records and operational risks, applying commensurate adjustments in premiums and terms where appropriate. This may include adjustments to deductible levels. The Club’s policy of applying selective ship inspections and management audits will also remain.
Source: shipownersclub.com
