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[TradeWinds] Korea P&I Club set to offer expiry terms.  
administrator 16-12-26 16:59  

Korea P&I Club set to offer expiry terms.

 

The Korea Shipowners’ Mutual Protection & Indemnity Association(KP&I) is to seek no general increase for 2017 in line with the expiry terms renewal pattern set by the International Group clubs.

The Seoul-based P&I Club has not increased rates in five of the past six years with the exception being 2014, when there was a 4.5% rise.

The decision was made by the club’s shipowner directors, led by chairman Jong-Seug Park of Korea Marine Transport, at a mid-December board meeting.

The independent club, which is outside the International Group cartel, appears to be enjoying a good year. The AM Best ratings agency recently reported that the free reserve had doubled to KRW49.3bn($41.25m) through the first half of the current policy year.

Although KP&I sees the outlook as becoming even thougher in 2017, with the Maritime Labour Convention increasing liabilities it is hoping to cut management costs and reduce spending on reinsurance.

AM Best affirmed the financial strength of KP&I as ‘A-‘ with a stable outlook following a review earlier this month.

“Although the club has experienced several large gross losses in the first half of 2016, KP&I’s risk-adjusted capilalisation remains strong, as measured by Best’s capital adequacy ratio,” said the ratings agency.

The club has highly liquid low risk investment assets with a conservative reinsurance programme that provides sufficient buffer to absorb potential losses in adverse scenarios, adds AM Best.

The ratings agency also identified government backing for a Korea P&I Club to support the country’s maritime industry as a positive factor.

KP&I set up in 2000 has over 1,000 vessels of 24 million gross tons on its books.

Members include Hanjin Shipping, the South Korean line in bankruptcy proceedings and a roll call of other big names including Hyundai Merchant Marine, Pan Ocean, Heung-A Shipping, Hanaro Korea Line, Korea Marine Transport, Polaris Shipping, Ssangyong, Cido, Boyang, Silla, SK Shipping, Shilla Trading, Sinokor Merchant Marine, Taiyoung, Namsung and Wooyang Shipping.



[쉬핑뉴스넷 인터뷰] 문병일 한국선주상호보험(KP&I) 전무이사
2017년 박정석 회장님 신년사
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