American Club’s fixed premium alternative enjoying steady growth

Eagle Ocean Marine (EOM), the American Club’s fixed premium P & I and FD & D facility, recently completed another year of steady growth and solid profitability.  It has also renewed its reinsurance program for another twelve months from July 1 on favourable terms at Lloyd’s. .

EOM offers Protection and Indemnity and Freight, Demurrage and Defense insurance to the operators of smaller vessels, typically those in local and regional trades, who prefer a fixed premium approach to their P & I needs.

It provides the benefits of American Club primary cover and service capabilities, co-venturing the first layer of insurance protection with underwriters at Lloyd’s on a quota-share basis.  Lloyd’s syndicates also participate in the facility’s excess reinsurance arrangements for limits up to $500m per risk.  In this way, EOM offers the levels of service associated with an International Group club, underpinned by the security of reinsurance at Lloyd’s.

EOM insures ships from all over the world except the United States.  It enjoys a strong presence in Asia, approximately 43% of its business currently being derived from Northeast Asia and 41% from South and Southeast Asia.  However, its share of the market in Europe, the Middle East and Africa has also grown over recent years, and now accounts for about 13% of its total portfolio.

EOM’s premium income has advanced steadily since it commenced operations in 2011, its compound annual growth rate being almost exactly 15% over the period.  Moreover, the insurance year just concluded featured a top-line increase in revenue of approximately 42% over the previous twelve months which was itself 16% higher than the year before.  Total premium revenue for the year to June 30, 2019 was in excess of $13m, a record.  It is expected that income will continue to grow over the forthcoming twelve months and beyond.

At the operating level, the last several years have enjoyed consistently good results.  The incidence and severity of claims have remained at moderate levels, reflecting a prudent policy of risk selection and premium pricing, notwithstanding a highly competitive commercial environment.  Since it commenced operations in 2011, EOM has generated an aggregate combined ratio of under 70%.  This, together with confidence in EOM’s prospects generally, informed the recent favourable renewal of its reinsurances, with several new underwriters joining the programme.

Following an extensive redeployment of its human resources, Eagle Ocean Agencies, Inc., the Manager of EOM, and an affiliate of Shipowners Claims Bureau, Inc., the Manager of the American Club, has made several key appointments over recent months.

In April, Chris Lowe was appointed as EOM senior marketing business development liaison, Despina Beveratou assumed the role of claims liaison manager and Jamie Baggett assumed the position of EOM marketing and business development liaison.  All these existing members of the EOM London team were well-known both to EOM’s and the American Club’s business counterparts, having worked in the London liaison office for several years in related roles.

In June, Richard Linacre, a well-known and highly experienced P&I professional with a broad industry background, joined EOM’s London team with important market liaison and business development responsibilities, bringing additional expertise and technical capabilities with him.

In addition to these changes, Simon Collins has continued to fulfil his important duties as consultant to the Managers in their London office.  A highly regarded P&I professional with unmatched industry experience as both underwriter and broker, Simon will continue to have a vital role in the development of EOM-related business in that office, as well as in regard to its affairs generally.

Further key appointments are expected in London on the claims liaison front over the weeks ahead and, from a business development perspective, in Hong Kong over a similar time-frame.

Source:hongkongmaritimehub

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