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.
The combined IG market surplus for the 2017/18 financial year was USD 414 million and free reserves across the market are at an all time high at USD 5.4 billion.
The strong result in 2017/18 was driven principally by very healthy investment income, which overshadowed a mediocre underwriting result. Club general increase announcements will very likely follow the pattern of the previous two years (the vast majority with no general increases). However, despite this the renewal in 2019 will feel very different.
and will very likely end up materially lower than in 2017/18. Similarly it is almost certain that the overall market underwriting result for the current year will deteriorate further by February 2019. Faced with loss making underwriting and uncertain investment income, club underwriters will likely underwrite with increased rigour, in order to differentiate between the good, the bad and the ugly.
The stronger clubs have grown their reserves materially and they should absolutely continue to rebate capital to members