Willis Towers Watson’s P&I market financial Commentary combines and analyses the financial Year results for the IG P&I clubs highlighting the key themes and trends for the market.
Highlights
Premium reduced by 1.9%
Routine claims relatively stable, greater volatility of larger
claims. Incurred claims increased by 9.3%
Deterioration in P&I market combined ratio, with a 2019/20 market average of 118% (however if all clubs had charged their full estimated total calls, the underlying market combined ratio would have been 115%)
Range in investment returns announced by individual clubs,
but overall very positive (market average return 7.4%)
USD 476 million P&I market underwriting loss in 2019/20,
offset by USD 689 million combined investment income, led to an overall market surplus of USD 213 million
3.3% increase in market free reserves, driven entirely by
investment income
Continued wide variance between best and worst
performing clubs
