The London P&I Club

Summary of announcement

London Club have announced a 6% overall targeted increase in average rates for the 2026 renewal.

The Club have cited rating discipline and volume growth as key factors in premium revenue increases, with 9% tonnage growth projected in the current financial year (a significant portion of which is attributed to organic growth in existing fleets).

A modest underwriting deficit was in line with expectations, driven by both retained and Pool claims forecasts falling in line with projections in the first half of the 2025 year. The Club reports a similar experience thus far in the latter half of the year and, forecasts being accurate, they anticipate a three year average combined ratio of sub-100% by year end.

The Board noted the potential impact of higher severity claims on performance and cited claims inflation (both within retention and the Pool) as driving factors in their decision to announce an overall increase in targeted average rates. A minimum increase of USD 2,000 will also apply to all deductibles below USD 20,000.

The Club reported favourable investment returns, with a 4.5% return at the end of the first quarter, increasing to 7.0% at eight months. Free reserves increased to USD 180m and the Club's solvency ratio to 200% at the half year mark.

Further details can be found in the Club's bulletin, here.