There has been considerable consolidation and a notable contraction within the Non-International Group (Non-IG) market in 2018.
Thomas Miller Speciality has acquired both Navigators P&I and the insurance services of Zeller Associates (the latter being the manager of Hanseatic P&I). This move consolidated a combined premium income of approximately USD 40 million under the Thomas Miller Speciality MGA.
In addition to this, Lodestar Marine has been acquired by Managing General Agent Ryan Speciality Group LLC.
Three major global marine insurers; Navigators Group, RSA Group and AmTrust have withdrawn their capacity from the Non-IG market as part of their wider portfolio restructuring. Consequently, this has left Lodestar Marine and Hydor with an immediate challenge of having to replace this withdrawn capacity.
With the Non-IG market in a state of flux, premium income in the last 12 months has reduced by 7% with the combined Non-IG P&I and Charterers Liability income totalling USD 338 million. As the chart below indicates, the premium income of the Non-IG market is below the level of 2013 (USD 380 million)..
As a result of this, the variance in size of insurers has increased within the Non-IG market. British Marine, Thomas Miller Speciality (including Hanseatic) and MS Amlin Marine account for 69% of the market in terms of premium income.
Likewise, the Charterers P&I Club and MS Amlin Marine account for 73% of all charterer’s liability placed within the Non-IG charterer’s liability market.
Despite the consolidation and capital withdrawal from the Non-IG Market, one positive development is that the Norwegian Hull Club is to expand into providing owners P&I cover. Nevertheless, with the prospect of a reinsurance market continuing to harden, we are likely to see a continuation of the trend towards fewer but larger Non-IG insurers in the future.
The insurers we consider in our Non-IG market analysis are markets outside of the International Group (IG) offering cover for owners worldwide. The following pages provide a brief overview and analysis of each Non- IG insurer.
With effect from 8 February 2018, Thomas Miller Speciality have employed a select number of the Navigators’ staff and agreed a process by which the existing Navigators’ P&I business will continue under the management of Thomas Miller Specialty.
Navigators have granted Thomas Miller Specialty a binder to accommodate and transition renewal business into Thomas Miller Specialty. The binder is for a limit of up to USD 50,000,000 and the Thomas Miller Specialty underwriting and claims team are fully delegated to consider and manage business that attaches to this binder.
In February 2018 Ryan Speciality Group, LLC (RSG) announced its acquisition of Lodestar Marine Limited from Tawa Associates Limited.
With effect from 17 September 2018, Thomas Miller Speciality have acquired the MGA and Insurance Services operations of specialist insurance services Group, Zeller Associates.
With effect from 13 November 2018, RSA Group announced that it will be ending its partnership with Lodestar Marine Limited with immediate effect or at contract expiry.
The Norwegian Hull Club has announced that it intends to launch a new fixed premium P&I product aimed initially at Shipowners and operators in the Nordic region.
The Non-IG Insurers Market Share (Owned) chart exhibits British Marine, Thomas Miller Speciality (including Hanseatic) and MS Amlin Marine accounting for 69% of total premium income
The Non-IG Insurers Market Share (Charterers Liability) chart exhibits The Charterers P&I Club and MS Amlin Marine accounting for 73% of total premium income
| Non-IG P&I Facility (Owned) | Maximum P&I Limit (USD) | Annual Written Premium (USD) | Standard & Poor's Rating* |
|---|---|---|---|
| British Marine | 1 billion | 93,500,000 | A+ (QBE Insurance (Europe) Limited) |
| Carina | 500 million | 14,800,000 | A+ (Lloyd’s) |
| Eagle Ocean | 500 million | 10,091,627 | BBB- (American Club) |
| Hanseatic | 500 million | 21,070,000 | A+ (Participating Underwriters) |
| Hydor | 1 billion | 19,500,000 | A+ (Lloyd’s) |
| Ingosstrakh | 1 billion | 15,800,000 | BB+ |
| Lodestar | 1 billion | 24,000,000 | A (RSA) |
| MS Amlin Marine N.V. | 1 billion | 40,000,000 | A (MS Amlin) |
| Thomas Miller Specialty | 500 million | 32,000,000 | A+ (Lloyd’s) |
| Total | 270,761,627 |
| Non-IG P&I Facility (Charterers Liability) | Maximum P&I Limit (USD) | Annual Written Premium (USD) | Standard & Poor's Rating* |
|---|---|---|---|
| Charterama | 500 million | 9,750,000 | A (RSA) |
| The Charterers P&I Club | 500 million | 29,000,000 | AA- (Munich Re Group) |
| Norwegian Hull Club | 1 billion | 8,600,000 | A |
| MS Amlin Marine N.V. | 500 million | 20,500,000.00 | A (MS Amlin) |
| Total | 67,850,000 |
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