The International Group of protection and indemnity clubs that provide maritime cover generally produced improved results last year, a report by AUB-owned Tysers says. 

All clubs achieved an overall surplus for the year, mainly due to excellent investment returns totalling over $US1.1 billion ($1.6 billion), and five clubs among the 12 managed a breakeven or better technical result, the report says. 

The average combined operating ratio across all lines of business before returns was 101% compared to the previous year’s 105%.  

International Group free reserves have risen over the last three years and by the end of the latest policy year had reached nearly $US6.8 billion ($9.6 billion), an increase of over $US800 million ($1.1 billion) on 2024. 

“The clubs are stronger than ever in terms of free reserves, but this is due to investment returns rather than technical results,” the report says. 

“Many still have work to do to achieve a regular combined ratio around 100% against a background of claims volatility and the increasing cost of serious casualties.” 

Tysers says it wouldn’t be surprised if 2027 premium increases are in a range of 0-7.5%. 

But it notes the increase in free reserves raises questions over the level the clubs require, given funds are owned by the member under their mutual model. 

The report is available here.