The UK P&I Club has announced continued growth at the end of the 2024/2025 financial year, both in terms of entered tonnage and financial strength. A healthy 6.6% investment return has grown the Club’s free reserves to US$494 million, despite a challenging policy year for the sector.

The increase in free reserves means the UK Club remains one of the strongest in the International Group, maintaining a Solvency Ratio of 242%, whilst exceeding the S&P capital model’s 99.99% confidence level.

Despite the Club’s continued growth, the 2024/25 policy year has been a challenging one, which has impacted the Club’s underwriting performance. High profile incidents such as the Dali collision, in March 2024, combined with several claims notified in the final weeks of the year, led to one of the most expensive pool years on record.

As a result of the UK Club’s pool contributions, as well as a number of large claims within the Club’s portfolio, the Club’s combined ratio increased to 116%, compared to 107% in the previous policy year.

Encouragingly, the Club benefitted from its diversified fixed premium portfolio which delivered positive underwriting performance. The charterers liability portfolio delivered a combined ratio of 83%, and the TMS fixed premium P&I business, following significant remediation over the past 18 months, achieved a combined ratio of 93%.

The UK Club announced the completion of a strong renewal process in February 2025, with excellent Member retention for the 2025/6 policy year. At 20th February, the UK Club reported an increase in mutual tonnage of 5.6 million GT, bringing the Club’s gross owned tonnage to nearly 162 million GT. This growth is further supported by a healthy pipeline of new tonnage commitments by existing Members for the 2025 policy year.

Andrew Taylor, Chief Executive, UK P&I Club, said: The 2024/2025 policy year has presented significant challenges for both the UK Club and the wider P&I industry. Nonetheless, the UK Club’s robust investment returns and financial strength, coupled with our continued emphasis on fleet quality, enable us to maintain an exceptional level of service for our Members. This encompasses our market leading claims expertise, our safety & risk management offering, along with the comprehensive technical assistance and guidance we offer our members on a daily basis.

“Notwithstanding the challenges of the past year, as we move forward into 2025, we continue our positive journey and anticipate a strong year for the Club. Our focus is to continue providing the very best support to our Members and to help them navigate the increasing geopolitical, regulatory, and operational challenges they face.”