Shipowners’ Club Issues 2027 Renewal

The Shipowners’ Club issued its 2027 renewal report, revealing a stable and profitable year for the organization. At the half-year mark, the Club reported a Combined Ratio of 100.1%, indicating a modest underwriting deficit of $0.2m. This was a slight improvement from the previous year's 99.6% ratio and a surplus of $0.6m at the same stage.

The number of claims from Club members remained stable, although the total claim value was higher than the same period in 2025. However, the situation improved significantly since year-end 2025, with the impact of rising interest rates being offset by favorable investment returns. Despite the growing concerns of increased market volatility following the US mid-term elections, the Club anticipates delivering a year-end Combined Ratio very close to break-even.

The favorable investment performance is expected, albeit not at the levels achieved in 2024 or 2025. The Club also expects a soft reinsurance market and increased competition to temper growth. Inflation will continue to impact claim costs, and an increase in reinsurance costs is anticipated due to the Baltimore bridge claim. The Club decided against applying a General Increase for 2027, as the Board believes that the strong capital position of the organization allows for some slippage in the Combined Ratio above breakeven for that year.

This decision reflects the Club's commitment to minimizing increases in premiums for its Members, only increasing when absolutely necessary. The Managers will review individual Members' claims records and operational risks, applying adjustments in premiums and terms where appropriate, which may include modifications to deductible levels.

The Club will continue its policy of conducting selective ship inspections and management audits. Members and their brokers are reminded that renewal terms cannot be finalized while any premiums remain outstanding.