NorthStandard stays on course despite unsettling year for global P&I
NEWCASTLE : NorthStandard’s 2025 Annual Review reports a steady performance, highlighting the benefits of scale and diversification in an unsettling P&I year.
The global marine insurer said escalating geopolitical instability and serious maritime incidents had brought the “first test” in its second full year after the merger of North P&I and The Standard Club.
Continuing its successful strategy for growth, NorthStandard’s poolable mutual tonnage increased to just under 270M GT at 20 February 2025, against 260M GT a year earlier. However, following a benign claims period in 2022/23 and 2023/24, claims trends have matched an earlier NorthStandard prediction of a return to amore familiar pattern.
Last year, 15 claims were referred to the International Group of P&I Clubs pool at the 12-month point, including one claim of historic proportions, and a further five have been declared since then. Five of these claims involved NorthStandard, and this was reflected in NorthStandard’s 114% combined ratio, against 93% in 2024.
NorthStandard’s robust foundations were evident from the moderate impact the result had on free reserves, which decreased to US$800m from US$803m in 2024, but remained ahead of 2023’s US$686m. The solid performance benefited from a 5.9% return on investments, up from 4.9% in 2024 and annual premium income rose to US$886m. Earlier this month, S&P Global reaffirmed NorthStandard’s ‘A’ stable rating, with ‘AAA’ capital strength.
“No organisation is defined by its easier times, and challenges are what drive our club forward,” said Cesare d’Amico, Chair, NorthStandard. “NorthStandard was formed in response to shipping’s underlying uncertainties, and we have not allowed a turbulent year to blow us off course.”
Jeremy Grose, Managing Director, NorthStandard, commented. “The club’s readiness to ride out instability will be further tested by the uncertainties around global trade, underscoring the value of our strategy for growth and spreading risk. Development of our specialty lines continues at pace.”
Offshore & Renewables premiums grew 10% during the year, which also saw NorthStandard establish a new strategic partnership with NIORD. The club also offered combined hull and liability cover for smaller vessels for the first time through Coastal & Inland and Sunderland Marine.
Grose said that shipping’s changing ecosystem was shaping NorthStandard’s service evolution. “Global tensions continue to drive growth in our Hull & War activities, while Strike & Delay welcomed 12 new members. We are in a strong position to help members navigate risk volatility. We also continue to engage vigorously with authorities on sanctions on behalf of members.”
According to Paul Jennings, Managing Director, NorthStandard, “Marine insurers are playing a leading role in identifying and assessing the liability and regulatory frameworks for low-carbon fuels.“
NorthStandard contributed to a recent review on the topic from the International Group, feeding into the International Maritime Organization’s work on liability and compensation regimes for alternative fuels.
“Given the scale and variety of the challenges facing global shipping today,” commented Jennings, “we continue to respond by investing in P&I excellence and our people, in scale and diversification, and in our digital services portfolio.”
NorthStandard’s Annual Review 2025 can be downloaded [HERE]
