Marine Minute: 2018 Marine P&I Pre-Renewal Review
The 2017–18 year may now be history, but it will be a year which everyone will be wise to learn lessons from. As was widely predicted, collective Free Reserves soared by a further US$ 469 million to US$ 5.76 billion, notwithstanding a US$ 30 million capital distribution by Britannia and US$ 128 million of return calls. Since the year end the UK Club has redeemed its US$ 100 million hybrid capital and the Swedish Club has already announced a return of premium for the 2018–19 policy year.
Everything would appear to be smooth on the surface, with collective Free Reserves closing in on US$ 6 billion, but beneath these tranquil waters lurk several sharks waiting to wreak havoc on the finances of the Clubs. Not all of these sharks may strike at once, but if they do a bloodbath could ensue.