American Club books pre-tax loss (source Lloyd’s List)

New York-based International Group affiliate combined ratio at lower end of peers, with 2017 policy year closed after supplementary call

American Hellenic Hull unit benefits from firmer pricing while Eagle Ocean Marine subsidiary seeing ‘encouraging’ growth, according to marine mutual’s annual report

AMERICAN Club, the New York-based marine insurer, booked a $5m pre-tax loss for 2020 on revenue of $90.6m, according to its annual report.

Its combined ratio came in at 112% and would have been four percentage points higher but for a favourable accounting change.

While that puts it at the lower of end of this year’s CR spectrum for International Group affiliates, the marine mutual dropped hints of higher pricing at the next renewal round.

The 2017 policy year — which had earlier been subject to a supplementary call of 17.5% of estimated total premium — was formally closed without further call.

Tonnage entered in the mutual P&I class increased by about 5% year on year, to 18.0m gt overall. Freight, demurrage and defence tonnage rose by nearly 14%, to 12.2m gt.

American Club says ‘great moderation’ on P&I claims levels is over

The club’s American Hellenic Hull Insurance unit, a commercial hull insurer, also clocked up a small deficit, despite being the beneficiary of the across-the-board upturn in hull rates.

Its market share was up, and an improvement in underwriting ratios and a strengthening of the balance sheet were recorded.

The fixed premium brand, Eagle Ocean Marine, saw “encouraging growth”, with top line jumping 10%, pointing to a likely substantial increase in premium in the current facility year, which terminates on June 30.

The overall return on investments for the year was 5.4%, down from 10.6% the previous year, but nonetheless credible in light of the uncertainties facing investment markets.

In terms of claims experience, 2020 saw some improvement in attritional claims from 2019.

Claims for the club’s own account for 2020 are developing at a level approximately 20% less than for the prior year at the 12-month point.

The American Club has not had any pool claims since 2016, but exposure to losses by other clubs form a significant part of its overall claims exposure.