While marine insurers may be facing uncertainty in the face of issues in the Gulf region, the London P&I Club has reported another year of solid financial performance for 2024/25, posting an operating surplus of US$21.3 million and boosting its free reserves to US$171.2 million. Gross earned premiums rose by 12%, reaching US$159.8 million.
The club’s combined ratio stood at 101.7% for the year, helping to improve the three-year weighted average combined ratio to 103.9%. Investment activity also delivered robust results, generating a 6.3% return on cash and assets under management - contributing US$24.7 million to the overall operating surplus.
Despite experiencing higher-than-anticipated pool claims late in the 2024 policy year, the club maintained strong technical performance and revenue growth, demonstrating increased financial resilience. This performance aligns with the club’s ongoing strategy to maintain sustainable rating and deductible structures, while targeting high-quality tonnage globally.
The club’s improved financial footing was acknowledged by S&P Global Ratings, which revised its outlook to stable in December 2024. The ratings agency cited consistently strong operating results and enhanced capital adequacy as drivers of the upgrade.
Chief executive James Bean, who assumed leadership in November 2024, stated: “These most recent results are the clearest sign yet that the fundamentals of our business are strong and that we are well placed to fully meet the needs of our members and assureds, both now and in the future. Our strategic plans are delivering growth in tonnage, acknowledging the association’s reputation for best-in-class personal service. Combined with a strengthening capital position, the London P&I Club is resuming its position as a leading independent mutual marine P&I insurer. We want to thank our members, assureds and brokers around the world for their continued support and confidence.”
The announcement follows a successful renewal period in February 2025, which saw mutual tonnage rise by 12.6% year-on-year. The club’s mutual book now totals 49.5 million gross tonnes - on par with 2021/22 levels, but supported by a significantly improved premium base.
