Thumbs up for new P&I powerhouse

Immediate validation greeted the launch of NorthStandard last month, after the marine mutual formed by merging North P&I and Standard Club secured an enhanced ‘A’ stable rating from S&P Global for its competitive position and ‘AAA’ for capital adequacy and sound balance-sheet risk management.

“This assessment demonstrates how NorthStandard is being recognized as having the financial resilience to meet the shipping world’s challenges and opportunities, in 2023 and beyond,” said Jeremy Grose, who leads the new organisation with fellow managing director Paul Jennings. Grose and Jennings were respectively previously CEOs of Standard Club and North.

Driven by an overwhelming vote in favour of the merger by members last year, NorthStandard becomes one of the world’s largest providers of mutual cover in the maritime market, with more than 390 million GT of owned and chartered tonnage on its books. The number is thought to have increased in the days after 20 February, as ships still being confirmed on renewals day were formally entered.

As an organisation consolidating annual premiums of around US$800m, NorthStandard brings together more than 300 years of P&I heritage and employs more than 700 people worldwide, managed from twin UK headquarters and with offices throughout Europe, Asia, Australasia and the Americas.

For the 2023/2024 policy year, members were renewed with certificates retaining Standard Club and North branding. Common NorthStandard policies are anticipated from 20 February 2024.

In their final renewal statements as separate entities, North P&I and Standard Club reported resilient performances through another extraordinary year of challenge for maritime industries. Both clubs foresaw positive combined ratios and stable levels of capital, notwithstanding losses across their investment portfolios amid financial market turbulence in the last year.

Underlying Stability

North’s diversification strategy continued to generate positive returns, with Sunderland Marine and North Hull experiencing further growth in market share and premium income.

North’s total premium income for 2022/23 rose to more than US$445m, with combined renewed tonnage on 20 February 2023 estimated to be approximately 240million GT. Standard Club saw premiums rise to US$350m and combined owned and chartered renewed tonnage on 20 February 2023 of approximately 155M GT.

Its extension into coastal and inland vessels in Asia continued to attract new business, while strike and delay activities delivered strong year-on-year premium growth.

As well as an unusually benign year for claims on the International Group pooling arrangements, North and Standard benefitted from their efforts to adjust premium rates to sustainable levels, as well as continued diversification.

“Building on scale, comprehensive services and the depth of our talent pool, NorthStandard is the P&I partner that members need to navigate the challenges ahead, and a fresh and dynamic force in marine insurance with a proactive approach to opportunities,” said Grose.

“By combining our unparalleled depth of knowledge and breadth of expertise, we will deliver better service, support and cover than ever,” he added.

For global shipping organisations and the clubs that protect their freedom to trade, navigating the sanctions that are increasingly used to accomplish foreign and economic policy goals has proved especially challenging and time consuming over the last year, according to fellow NorthStandard managing director, Paul Jennings.

“However, NorthStandard also needs to help shipping meet other challenges, including decarbonisation and digitalisation, the progressive requirement to improve safety and welfare standards, protection against cyber threats, while ensuring that the maritime sector attracts and retains the best talent,” he added.

Leadership In Position

The NorthStandard launch coincided with a series of senior management appointments, forming what Jennings, described as “the leadership team entrusted with ensuring that members worldwide experience greater value, certainty, choice, responsiveness and easier access to unrivalled expertise.”

Key appointments include Nick Jelley, as chief financial officer. Standard Club CFO since 2013 (and previously Club finance director from 2008), Jelly’s role includes managing financial and regulatory affairs, and financial risks for the new organisation, as well as monitoring cash flow and liquidity, and overseeing NorthStandard investment portfolios.

Thya Kathiravel, appointed as chief underwriting officer, takes up his position after four years in the equivalent role at North, and following 27 years with the Club. Kathiravel will represent NorthStandard on the International Group’s reinsurance committee and is the current chair of the pooling agreement committee.

“NorthStandard is a leading member of the International Group of P&I Clubs (IG) and is fully committed to upholding the shared objectives of its 12 independent member clubs,” said Kathiravel. With the IG providing liability cover for approximately 90% of the world’s ocean-going tonnage, the NorthStandard team believes it can help the grouping “unlock its full potential,” he added.

Within the new structure, Ed Davies has been appointed chief strategy officer. His workload is expected to have a significant impact in realising the new entity’s ambitions, with the former North CFO developing, communicating and implementing strategy and strategic performance management, as well as identifying, planning and executing key initiatives across the business.

The merged organisation’s comprehensive global, local market and sector knowledge will be underpinned by continuous investments in market-leading digital technologies, a point emphasised with the appointment of Laura Linturn as chief information officer, NorthStandard.

“Our aim is to see NorthStandard become the most technologically advanced P&I club, enabled by a highly engaged, empowered and fully integrated technology team,” commented Linturn. “Through continuous innovation and modern ways of working, we will deliver a market-leading shipowner and broker experience through best-in-class digital capabilities.”

Other senior appointments which have already been announced include

> Chief claims officer – Sam Kendall-Marsden.

> Global director (people & culture) – Alex Miell.

> Group general counsel – Chris Owen.

> Chief operating officer - Dipo Oyewole.

> Chief risk officer – Lee Williamson.

> Global head of FD&D claims – Katherine Birchall.

> Global head of mutual underwriting - Mark Collins.

> Global head of P&I claims – Matt Moore.

> Head of external affairs – Mike Salthouse.

“We believe this is a truly exciting moment for service-led P&I,” concluded Jennings. “NorthStandard anticipates becoming the P&I mutual of choice as an employer because its unique blend of service scope, influence, flexibility and innovation will co-exist with the caring ethos and culture on which both North and Standard Club built their reputations.”