Korea P&I Club set to offer expiry terms.
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.
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.
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.
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.
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.
Best affirmed the financial strength of KP&I as ‘A-‘ with a stable outlook
following a review earlier this month.
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.
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.
ratings agency also identified government backing for a Korea P&I Club to
support the country’s maritime industry as a positive factor.
set up in 2000 has over 1,000 vessels of 24 million gross tons on its books.
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.