MarineCommercialPIReview 1 2012web

MARINE
P&I COMMERCIAL MARKET

REVIEW 2012
www.ajginternational.com
CONTENTS
Welcome from the Executive Director 3
Fixed Premium P&I Insurance Explained 4
Commercial P&I Market Environment 6
Future of the Commercial Market 7
Review of the last 18 Months 8
Non-IG P&I Market Overview 10
Commercial P&I Market Facts & Figures
• British Marine 14
• Eagle Ocean Agencies Inc 15
• Hanseatic Underwriters 16
• Hydor 17
• Ingosstrakh Insurance Co 18
• Lodestar Marine Limited 19
• Navigators Insurance Company 20
• Osprey Underwriting Agency Limited 21
• RaetsMarine BV 22
• Rosgosstrakh Ltd 23
Non International Group P&I Mutual Market Facts & Figures
• Ceylon Ship Owners Mutual P&I Club 26

• China Shipowners Mutual Assurance Association 27
• Hellenic Mutual P&I & War Risks Association 28
• Korea Shipowners Mutual P&I Association 29
Non-IG Charterers Specialist Facilities Facts & Figures
• Charterama BV 32
• Charterers P&I Club 33
• Norwegian Hull Club 34
Industry Statistics 36
Rating Agency Analysis 38
Major Limiting Conventions & Statutes Affecting P&I Risks 40
Contacts 49
1
2
MARINE P&I COMMERCIAL MARKET REVIEW 2012
MESSAGE FROM THE EXECUTIVE DIRECTOR MALCOLM GODFREY
WELCOME TO OUR FIRST COMMERCIAL P&I MARKET REVIEW
Gallagher London is one of the leading global marine insurance brokers in the P&I industry sector. One of our core
beliefs is transferring all pertinent market information to our clients and business partners.
The P&I market is broad and varied when it comes to its products, service, security, strength and flexibility. Many brokers
tend to focus on reviewing the “main-stream” International Group P&I Clubs and we often see many brokers P&I reviews
which more or less offer the same statistics and analysis without real content. We at AJG strive to offer a valuable and
accurate opinion on market conditions, which sets us apart from our competitors.
The commercial P&I market, also referred to as “the fixed premium market” has been somewhat regarded as secondary
in the broker review process. This is one of the reasons why we have decided to compile our first Commercial P&I Market
Review, in addition to our Annual P&I Review and Mid-Year P&I Review, which will continue to focus on the International
Group Clubs.
Our view at Gallagher London is that the non-IG market is an integral part of the maritime insurance industry, offering
products and services, where some of the “blue water” P&I Clubs lack enthusiasm to participate in this risk profile.
With many P&I Clubs protesting about new building rates, as well as the inherent “churn effect”, with the need to
increase rates year on year, should this be a market sector they should consider more seriously?
There are a number of P&I facilities, which fall outside of the International Group of P&I Clubs’, that offer covers aimed
at specific types of vessel operators. The AJG Commercial P&I Market Review will focus on the leading fixed premium,
non-IG Mutual and Charterers Liability facilities, which are generally accessed via London brokers.
We have received tremendous support from the commercial market principals, who agree that long established
commercial P&I markets are often missed out from publications.
Gallagher London P&I remains at the forefront as industry leaders, this is something we are extremely proud
of and demonstrates our value added service.
Sincerely,
Malcolm Godfrey
Executive Director; Gallagher London
3
FIXED PREMIUM P&I INSURANCE EXPLAINED
WHAT IS FIXED PREMIUM P&I INSURANCE?
Fixed premium P&I insurance indemnifies ship owners, operators and charterers for third party liabilities arising from
a fortuitous event or a marine peril. Third party risks include a carrier’s liability to a cargo owner for damage to cargo,
a ship’s liability after a collision, environmental pollution, the ship’s liability to its crew, fines and war risks etc. The term
“fixed premium” means exactly that, as the terms and conditions offered by a commercial insurance company do not
expose clients to potential excess calls, unlike IG Group Clubs.
The premiums involved in this market sector are often more competitive, compared to an IG Group Club option, as
insurance packages are specifically tailored to meet the demands of the risk entailed, on a reduced limit of liability basis.
DO IG P&I CLUBS PROVIDE FIXED PREMIUM INSURANCE?
Fixed premium insurance contracts are typically provided by insurance companies or underwriting agents outside
of the International Group of P&I Clubs, however some of the IG P&I Clubs do provide “Owners P&I” fixed premium
terms for some longstanding fleets, US flagged fleets and Government fleets, which have been approved by the
International Group.
A number of P&I Clubs, such as American, Gard, SOP and Steamship Mutual also have fixed P&I premium facilities
in place for smaller inland craft and U.S. yachts. AJG will focus on these facilities in our “Marine P&I Review 2012”
which will be published towards the end of this year.
All of the IG Clubs provide alternative fixed insurance products, such as Charterers’ Liability Insurance and other marine
related products, which do not fall under the conventional IG Group P&I product or IG reinsurance programme.
WHAT ARE THE DIFFERENCES BETWEEN COMMERCIAL MARKET AND

IG GROUP P&I INSURANCE?
• GENERAL INCREASES - The fixed premium market does not adopt the annual general increase philosophy, which is
a tradition practiced amongst most of the IG P&I Clubs. Renewals are instead underwritten on the assureds’ individual
merits and loss record, although there may be increases sought on the basis of exposure and operating costs or the
overall performance of the insurers portfolio.
• ANNUAL MANDATORY REQUIREMENTS - Over the last few years we have seen many P&I Clubs’ insert annual
mandatory uplifts/ requirements, which are often non-negotiable, such as deductible increases etc. This is a practice
which the commercial market does not follow.
• SUPPLEMENTARY OR EXCESS CALLS - IG Group Clubs have the power to make excess supplementary calls if
there is a need to raise funds, which are non-negotiable. The non-mutual commercial insurance companies do not
have this capability.
• RELEASE CALLS - A client has the freedom to change insurer without having to release themselves from future
liabilities to supplementary calls or excess supplementary calls, which is a fundamental part of the IG system.
• COMPETITION - The commercial insurance companies are able to offer independent terms as well as competing
with each other to win business. All of the non-IG facilities are free from the constraints of the International Group
Agreement, something which the IG Clubs voluntarily abide by.
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WWW.AJGINTERNATIONAL.COM
• SECURITY GUARANTEES - IG P&I Clubs have an integral advantage over the commercial insurance market, with
the ability to put up an immediate letter of guarantee to secure the release of an arrested vessel, without additional cost.
However, fixed premium insurers typically need to contact their reinsurers to obtain security guarantees, which can take
time and may come with additional costs, which would ordinarily be passed onto the assured. It is important to note that
the ability of each individual insurance company differs, when it comes to issuing letters of security.
• THE “OMNIBUS RULE” - The fixed premium market does not benefit from the IG Club “Omnibus Rule”, which allows
the individual IG Club board’s to decide whether they can indemnify a Member in difficulty.
• UNDERWRITING FOR PROFIT - IG Group Clubs are focused on “not for profit service”, whereas a commercial
insurance company can be more profit focused, which is an important factor to consider, when handling claims to
ensure that the claimant is indemnified at an appropriate level. This is where a strong broker like AJG will add value!
• SERVICE PHILOSOPHY - In an IG Group Club, the managers are the “servants” of the Club, the overall control
of the Clubs are in the hands of its Members and its ship owner boards, who decide on policy changes, scope of
cover, claims payments and premiums calls.
• LIMITS OF LIABILITY - Without access to the International Group Pool, fixed premium coverage will be limited to
a specific limit of liability, however clients may still be exposed to catastrophes, which could potentially exceed smaller
limits. Choosing the appropriate level of cover is something that AJG can help you with.
• BLUE CARDS - Some fixed premium insurance companies issue blue cards which are not approved by a number
of flag states or port authorities. It is vital to ensure that Bunker Blue Cards and/or CLC Blue Cards are accepted
by the shipping authorities prior to trading.
• CERTIFICATES OF FINANCIAL RESPONSIBILITY (COFR) – A requirement under the US OPA 90 (United States
Oil Pollution Act), there is a requirement that any vessel over 300 GT requires a valid COFR and COFR guarantee cover
in place. Guarantee coverage is provided by several COFR guarantee companies, which require letters of undertaking
by an International Group P&I Club. Most of the fixed premium facilities are not approved by these guarantee
companies. Therefore it is important to check this prior to trading to U.S. waters.
• DIVIDENDS - Some of the P&I Clubs pass back “dividends”, in the form of premium returns or not calling budgeted
supplementary calls in full to the Membership if the Club has experienced a good underwriting year.
5
THE COMMERCIAL P&I MARKET ENVIRONMENT
There are a number of Commercial Fixed Premium Protection & Indemnity Facilities, Non-IG Mutual Insurers and
Underwriting Agencies, which operate outside of the International Group of P&I Clubs. These P&I facilities currently
offer insurance solutions aimed at specific types of vessel operators, within a tonnage range of up to 25,000 gross
tons, offering limits up to USD 500 million (higher GT caps and limits are also available depending on the facility).
These facilities tend to target ship owners with smaller, short-trade vessels, principally operating in coastal or
inland waters.
Some of the key advantages of insuring with a fixed premium insurer are that they can offer certainty of cost and lower,
more accessible, limits of liability, with no liabilities for unbudgeted supplementary calls or annual general increases.
Not all of the alternative facilities offer fixed premium covers, some are mutual. In addition to this there are exclusive
charterer’s liability specialist insurers, which cater to charterers and traders.
All fixed premium facilities target ship owners, operators, charterers and traders emanating from all geographical areas
(subject to EU/US Sanctions), certain facilities however tend to shy away from passenger, cruise and U.S. flagged,
trans-Atlantic and trans-Pacific business. Coverage for over-age and non-IACS classed tonnage is also available
from the majority of fixed premium facilities.
The fixed premium P&I market has evolved considerably over the last five years, with more new entrants than exits
from this market sector. This is perhaps to be expected given the IG Group system’s workings and the competitive
nature of the commercial market. In addition, there have also been a number of investors looking to make new
inroads into the fixed premium market, which is a particularly attractive headline revenue growth area.
The following table provides a snap shot for the last five years market development:
NON-IG MARKET DEVELOPMENT (LAST FIVE YEARS: 2007 - 2012)
ESTABLISHED MARKET NEW ENTRANT SPECULATIVE MARKET EXIT

British Marine Ceylon P&I Club *Royal Sun Alliance P&I South of England Mutual
(Est. 2011) (2011)
Charterers P&I Club Charterama BV *Tindall Riley Small

(Est. 2009) Ship Fixed Facility
China P&I Club Eagle Ocean Marine

(Est. 2010)
Hanseatic P&I Hellenic Mutual P&I

(Est. 2011)
Ingosstrakh Hydor
(Est. 2009)
Korea P&I Club Lodestar Marine Ltd

(Est. 2012)
Navigators P&I Rosgosstrakh P&I

(Est. 2010)
Norwegian Hull Club
Osprey Agency
Raetsmarine BV
* A rumoured new P&I market facility, which AJG is following closely
6
THE FUTURE OF THE COMMERCIAL MARKET
There are a number of dominant factors driving the future On the IG Group side, it is rumoured that Tindall Riley, the
of the commercial P&I market, which we have identified managers of the Britannia P&I Club, are in the process of
as follows: implementing a small ship fixed P&I facility. Tindall Riley had
previously launched an H&M/ Fixed P&I product named
• The invariable “Soft” P&I Fixed Premium Market “Marianne” in the late 1990s, which never got off the
ground to any extent.
• Increased competition, as a result of new
market entrants Turning to the non-IG mutual insurers, the China P&I Club
has been attempting to enter into the International Group
• Speculative new P&I markets
league for many years. At this stage, the China P&I Club
• Minor concerns regarding the reliability of infant has not been successful; however with their impressive
P&I facilities free-reserve position and ambition to grow outside of
China, we may see the first Chinese entrant into the IG
We at Gallagher London see the fixed premium market group system in the not too distant future.
sector continuing to remain relatively soft for the
foreseeable future. This is mainly due to the abundant Looking back at the South of England’s exit from the
supply of fixed premium capacity, which is now expanding market in 2011, which was the first mutual club failure
further due to the number of new entrants into the market. since Ocean Marine Mutual in 2000, there has been some
talk in the market that the Ceylon P&I facility will replicate
We have seen fixed premium and charterer’s liability it, by offering terms for non-IACS classed vessels, up to
insurers trying to enforce small increases at renewal, and exceeding 25,000 GT. At the moment the facility does
in an attempt to increase premiums to cover inflationary offer coverage for all vessel types and size, however the
operating costs. Typically, these increases usually range Club is primarily focused on areas regional to the Indian
between 2.5% to 5%; with a loss record ranging from Ocean and South China Sea shipping industry.
50% to 100%. There is also an underlying current, where
a hardening reinsurance market may put pressure on As a result of further market entrants, we should see the
insurers to drive prices upwards. However, with the non-IG market become even more competitive, with rates
commercial market’s competitive nature, most clients continuing to fall amongst the more established providers,
renew on an expiring basis or less, this is a trend that who will be fighting for position to gain good business.
we see continuing in the short to midterm. The more recent new facilities will continue to operate
at the fringe level of the market, whilst building up their
Looking at the commercial markets’ as a whole, we see portfolios and claims service reputation.
the fixed premium and non-IG mutual market continuing
to grow with further new entrants. There are various With the growing number of international commercial
speculative rumours which suggest that RSA (Royal Sun facilities offering P&I insurance, there are some minor
Alliance) are reviewing their options to enter the P&I concerns that the increasing supply of capacity will not be
market. The Royal Sun Alliance Group is expected to sustainable or stable in the long term amongst the non-
provide the first $100 Million of reinsurance to Lodestar, established insurers. With P&I premiums already falling
who have now commenced trading. Furthermore, it is also and the average claim value increasing annually, some of
said that German based insurance consortium Hanseatic the smaller facilities may be forced to exit the market in
P&I are in the process of opening a London based their infant stage, if technical underwriting deficits result
representative office in the coming months. in carriers and reinsurers withdrawing their support.
Consolidation amongst the smaller facilities to command

a collective market share could potentially assist to avoid a
premature market exit. However, it is not in the commercial
markets nature to do so, as external pressures and
obligations to reinsurers would ultimately hinder this process.
7
REVIEW OF THE LAST 18 MONTHS
2011
FEBRUARY The Hellenic Mutual facility commences underwriting P&I risks.
JUNE South of England announces excess calls of 20% on the 2007/08 policy year, 45% on the 2008-09
policy year and 45% on the 2009-10 policy year. The Club also warned of possible further calls on
the 2010/11 year.
JULY Navigators P&I recruit Damian Mustard from Thomas Miller (UK P&I Club) as an Underwriter in the
P&I department.
Eagle Ocean Marine underlying security switched to 100% American Club, reinsured with a number
of Lloyds syndicates.
SEPTEMBER QBE/ British Marine raise a dispute against Lodestar - At the centre of the case were allegations the
Lodestar are developing the new project while still working at British Marine. Consequently, QBE
accused their former staff of breaching contractual obligations. The High Court later advised that
Lodestar was not to start operation until April/May 2012.
Osprey Underwriting Agency recruit Richard Lovett, from RaetsMarine BV (London), as a P&I
Underwriter.
OCTOBER South of England placed in provisional liquidation at the order of the Bermuda Monetary Authority
with a final hearing being scheduled in November 2011.
NOVEMBER South of England placed in liquidation - The Bermuda Courts have confirmed the appointment of
Joint Liquidators at the South of England P&I Club. The decision completes the process which began
with the Bermuda Monetary Authority petitioning for a winding up order on 7 October and follows
the adjournment of the formal proceedings on 18 November.
The liquidation was ordered on the basis that the Club was insolvent, with the BMA believing that
much of the $ 31 million excess call ordered in June would prove uncollectible. The Club managers
counter argument that early excess calls were collected, and their attempts to collateralise the debt
failed. It is also understood that questions were raised as to the appropriateness of the Club's
corporate structure and governance.
The liquidators had 6 months to convene meetings of the members and creditors.
RaetsMarine BV (London) recruit David Osborne from the Steamship Mutual as an Owners P&I
underwriter.
DECEMBER Leading British Marine figure, Robert Johnston, retired from his position as Chairman at the end of
the year. Robert was at the helm of British Marine since its demutualisation and played a key role in its
development. We wish Robert continued health, happiness and success. We suspect that the market
will see his return in the not too distant future.
8
2012
JANUARY Andrew Hearn joins British Marine from Tindall Riley, manager of the Britannia P&I Club as
Portfolio Manager
MARCH Charterama BV reinsurers, REAAL Schadeverzekeringen NV, downgraded by S&P from

A- to BBB+
APRIL RaetsMarine BV (London) recruit Arneaz Nordin from the Charterers P&I Club as an underwriter
for Charterers’ Liability
MAY Charterer’s Liability Underwriter, Powan Li, departs from the Norwegian Hull Club.
JUNE Tindall Riley recruits Mark Esdale from Charles Taylor Consulting (Standard P&I Club) and
Julie Page from Thomas Miller (UK P&I Club). Still no word on the rumoured new small ship
fixed premium facility.
British Marine recruits Paul Flowers from the North of England P&I Association to join the
claims team
JULY The South of England P&I Association was due to hold its first creditors meeting in May 2012,
but the liquidators applied for, and were granted, a 3 month extension to this deadline. The first
meeting will take place in late September 2012: an initial circular was sent out to interested parties on
6 July, and promptly recalled. The statutory solvency statement attached to the circular pointed to an
audited statutory deficit in excess of $ 31.3 million at 31 December 2009.
Osprey Underwriting Agency’s Guy Pierpoint is appointed CEO, as Lev Osman steps down.
Furthermore Nick Ballantine has re-joined the Board as Chairman.
German based insurance consortium Hanseatic P&I’s participating insurance companies raised to
six as UNIQA Sachversicherung AG, Vienna, became part of Hanseatic P&I and Hanseatic Defence.
9
NON-IG P&I MARKET OVERVIEW
FACILITY CARRIER ANNUAL PREMIUM/ TONNAGE/VESSEL

2011 INCOME #
BRITISH MARINE QBE Insurance (Europe) Ltd US$ 125,000,000 12,600,000 GT

S&P: A+
CEYLON P&I CLUB Mutual Insurance Company US$ 5,400,000 1,178,444 GT

S&P: Unrated
CHARTERERS P&I CLUB Great Lakes/ Munich Re US$ 27,200,000 Approx. 230 + Clients
S&P: AA
CHARTERAMA BV REAAL Schadeverzekeringen US$ 10,000,000 Approx. 250 + Clients

NV
S&P: BBB+
CHINA P&I CLUB Mutual Insurance Company US$ 53,000,000 27,800,000 GT

S&P: Unrated
EAGLE OCEAN MARINE American P&I Club/ US$ 5,000,000 454,211 GT

Lloyds of London
S&P: BB+
HANSEATIC P&I Insurance Consortium – US$ 15,800,000 2,050,000 GT

See Page 16
S&P: Various ”A” rated
HELLENIC P&I MUTUAL Mutual Insurance Company US$ 1,250,000 -

S&P: Unrated
INGOSSTRAKH Ingosstrakh US$16,250,000 1,029 vessels on risk

S&P: BBB
NORWEGIAN HULL Norwegian Hull Club US$ 11,000,000 Approx. 150 charterers clients
CLUB S&P: A
KOREA P&I CLUB Mutual Insurance Company US$ 30,100,000 10,007,000 GT

S&P: Unrated
HYDOR Lloyds Brit Syndicate 2987 US$ 2,000,000 -

S&P: A+
LODESTAR MARINE LTD RSA and Various - -

Lloyds Syndicates
S&P: A
NAVIGATORS P&I Navigators Insurance Company US$ 22,500,000 2,200,000 GT

S&P: A
OSPREY Lloyds of London US$ 34,000,000 Approx. 3,000 vessels

S&P: A+
RAETSMARINE BV Amlin Corporate Insurance BV P&I: US$ 33,500,000 13,000,000 GT

S&P: A CL: US$ 62,000,000
ROSGOSSTRAKH LTD Rosgosstrakh Ltd US$ 3,800,000 1,005,000 GT

Local Rating: Expert Ra A++
10
LOCATION LIMIT MAX SIZE VESSEL EXCLUSIONS ETC
LONDON, Up to US$ 500 Million; Up to 10,000 GT Avoids passenger risks, dirty tankers,
UNITED KINGDOM USD 1 Billion in some cases Charterers up to 30,000 GT reefers and vessels trading trans-Atlantic
or trans-Pacific. Does not write Turkish
Business.
COLOMBO, Up to USD 500 Million No limit Writes all classes of business, including
SRI LANKA Non-IACS tonnage Excludes Trans-
Pacific/Atlantic
LONDON, Up to US$ 350 Million No Limit Accepts Charterers Liability Risks Only,
UNITED KINGDOM FD&D limited to US$2 Million. Does not
write passenger business.
ROTTERDAM, Up to 100 Million No Limit Accepts Charterers Liability Risks Only,

NETHERLANDS FD&D limited to US$ 2 Million
BEIJING, CHINA IG-Club Limits No Limit -
NEW YORK, U.S.A P&I: Up to US$ 25 Million Up to 12,500 GT Coverage is not available to operators
FD&D: Up to US$ 2 Million based in the USA
HAMBURG, GERMANY Up to US$ 500 Million Up to 40,000 GT -

Max 10,000 GT for tankers
ATHENS, GREECE Up to US$ 500 Million Up to 25,000 GT -
MOSCOW, RUSSIA P&I: Up to US$ 500 Million No Limit Does not write large tankers,
FD&D: US$ 1 Million 90% of vessels are cruise vessel or US based operators.
< 10,000 GT
BERGEN, NORWAY Up to US$ 200 Million No Limit -
SEOUL, KOREA Up to US$ 300 Million Tankers: < 10,000 GT -

Non-Tanker: < 100,000 GT
OSLO, NORWAY Up to US$ 500 Million Up to 10,000 GT -
LONDON, Up to US$ 500 Million Up to 10,000 GT -

UNITED KINGDOM
LONDON, Up to US$ 500 Million Up to 10,000 GT Does not write passenger, private/pleasure
UNITED KINGDOM yachts and US Flagged business.
LONDON, Up to US$ 100 Million Up to 25,000 GT Does not write Tanker (persistent cargo)
UNITED KINGDOM business. US Flagged business limited
to US$ 1 Million.
ROTTERDAM, P&I: Up to US$ 500 Million Up to 25,000 GT -

NETHERLANDS CL: Up to US$ 500 Million No Limit on Charterers
FD&D: Up to US$ 2 Million Liability
MOSCOW, RUSSIA Up to US$ 100 Million Up to 25,000 GT Tankers up to 8,000 GT
11
12
COMMERCIAL P&I MARKET
FACTS AND FIGURES
13
BRITISH MARINE www.britishmarine.com
Established in 1876, British Marine is a specialist Hull & Machinery, Protection and Indemnity and Legal Expenses insurer
for small to medium sized vessels. At the turn of the 21st Century British Marine was de-mutualised and more recently in
2005 the privately held fixed premium insurer was successfully acquired by the QBE Group. With effect from 31st March
2010, all of British Marine’s assets and liabilities, including its current and past contracts of insurance and reinsurance
were transferred to QBE Insurance (Europe) Limited. The “British Marine” brand name has now become a trading name
for QBE.
Today British Marine provides fixed cost P&I insurance solutions, as well as H&M and Charterer’s Liability Insurance
products, offering P&I limits up to USD 500 million (limits up to USD 1 Billion are also available). The insurer typically
writes vessels up to 10,000 GT, with 90% of their portfolio consisting of medium size merchant vessels and the balance
of the portfolio being made up of fishing vessels and super yachts.
On the Charterer’s Liability side, limits for P&I are available up to USD 100 million with Charterer’s Damage to Hull being
limited up to USD 50 million. There is however a guideline tonnage cap of 30,000 GT.
Reinsurance Carrier: QBE and Lloyds of London

S&P Information: A+
Limits offered: Up to US$ 500 Million
Vessel Cap: Up to 10,000 GT (Charterer’s Liability up to 30,000 GT)
Location: London, United Kingdom
GEOGRAPHIC SPREAD OF BUSINESS TYPE OF ENTERED VESSEL
40% Western Europe 28% General Cargo

17% Far East 20% Tugs & Barges
10% Eastern Europe 17% Bulkers
9% Middle East 10% Containers
9% Americas 9% Others
5% India 7% Fishing
4% Scandinavia 5% Tankers
3% Africa 3% Yachts
3% Australasia 1% Dredgers
POLICY YEAR INFORMATION IN US$
ANNUAL PREMIUM 5 YEARS

2011 2010 2009 2008 2007
Premium Income $125,000,000 $ 133,500,000 - - -
Claims Incurred - - - - -
Surplus/ Deficit - - - - -
ENTERED TONNAGE 5 YEARS

2011 2010 2009 2008 2007
Annual Gross Tonnage 12,600,000 13,200,000 - - -
OTHER INFORMATION /PRODUCTS/NEWS

• British Marine underwrites in excess of 10,000 vessels, which is backed by S&P 'A+' rated security.
14
EAGLE OCEAN AGENCIES INC www.eagleoceanmarine.com
Eagle Ocean Agencies, Inc. is an affiliated company of The Shipowners Claims Bureau, Inc., who are the managers of the
American P&I Club, and Atlantic Marine Associates, Inc., which is a general marine adjusting and claims handling company.
In 2010, the Directors of the American P&I Club formed a separate fixed premium facility, namely Eagle Ocean Marine,
offering Protection and Indemnity and Freight, Demurrage and Defence insurance solutions.
The facility is primarily focused on operators of smaller ships, below 12,500 gross tons, operating in regional waters,
with policy limits being available up to $25 million for P&I and $2 million for FD&D.
P&I coverage is available to operators on a worldwide basis; however coverage is not available to operators based in the
U.S.A. or trading exclusively in U.S. waters. At present the facility is more Far East focused, with 60% of their portfolio
emanating from this region.
The agency has recently re-structured its insurance and reinsurance arrangements, with American Steamship Owners
Mutual Protection and Indemnity Association, Inc. providing the primary security. This in turn will allow Eagle Ocean to
put up American Club security guarantees up to its primary limits, as well as providing American Club blue cards.
Reinsurance Carrier: American P&I Club (Quota Share Reinsurance in London and German Markets)
S&P Information: BB+
Vessel Cap: Up to 12,500 GT
Location: New York, New York, USA
60% Asia Pacific 35% Tankers

25% Other 25% Tug & Barge
10% Europe 20% General Cargo
5% Americas 15% Others
5% Bulkers

2011 2010 2009 2008 2007
Premium Income $ 5,000,000 $ 500,000 N/A N/A N/A
Claims Incurred $ 1,500,000 $0 N/A N/A N/A
Surplus/ Deficit $ 3,500,000 $ 500,000 N/A N/A N/A

2011 2010 2009 2008 200
Annual Gross Tonnage 454,211 50,000 N/A N/A N/A

• Through the American P&I Club network, Eagle Ocean Marine has associated offices in New York, London, Piraeus and Shanghai, combined with a full
network of claims agents Worldwide.
15
HANSEATIC P&I
HANSEATIC UNDERWRITERS www.hanseatic-pandi.com
Hanseatic P&I is an insurance consortium, which was founded in 2005, by five German Insurance Companies: Allianz, Gothaer,
Kravag, Ergo and Sovag. March 2011 saw Sovag leave and Torus Insurance (Europe) AG join. More recently in July 2012 the
numbers of participating insurance companies increased to six as UNIQA Sachversicherung AG, Vienna, also became part of
Hanseatic P&I and Hanseatic Defence. The consortium is managed by Zeller Associates Management Services GmbH, Hamburg.
Hanseatic P&I provide ship owner’s liability, charterer’s liability and inland craft P&I cover. In addition FD&D is provided as either
an additional or separate legal expenses cover under the brand name “Hanseatic Defence”, based on the same consortium of
insurance companies as its P&I product. The facility offers P&I cover for all types of vessels with a limit up to USD 500 Million.
The core risk appetite of Hanseatic P&I is small and medium size general cargo and container vessels, as well as liquid cargo
and dry bulk. Additionally Hanseatic has expertise in traditional, offshore and specialist vessels of any type. The underwriting
philosophy at Hanseatic was originally focused on German and Northern European interests and later diversified its
underwriting criteria to include other geographical areas. At present, Hanseatic P&I core business emanates from all parts
of Europe, Russia and Turkey and it is presently looking to expand to select Middle East /North Africa and Asian regions.
Reinsurance Carrier: Allianz Global Corporate & Specialty AG – Swiss Re – Lloyds of London
S&P Information: A
Vessel Cap: Up to 40,000 GT (max 10,000 GT for tankers)
Location: Hamburg, Germany

10% Other 33% Container
5% Asia Pacific 14% Other Cargo
6% Bulkers
3% Miscellaneous
1% Passenger
1% Tankers

2011 2010 2009 2008 2007
Premium Income $ 15,800,000 $ 14,700,000 $ 11,200,000 $ 7,700,000 $ 5,800,000
Claims Incurred $14,700,000 $ 12,900,000 $ 7,200,000 $ 7,900,000 $ 3,900,000
Surplus/ Deficit $ 1,100,000 $ 1,800,000 $ 4,000,000 -$ 200,000 $ 1,900,000

2011 2010 2009 2008 2007
Annual Gross Tonnage 2,050,000 - - - -

• Hanseatic’s insurance consortium is made up of: Allianz Global Corporate & Specialty AG (S&P: AA), Ergo Versicherung AG, Gothaer Allgemeine
Versicherung AG (S&P: A-), Kravag-Logistics Versicherungs-AG (S&P: A+), Torus Insurance (Europe) AG (AMB: A-) and UNIQA Sachversicherung
AG (S&P: A-).
16
HYDOR www.hydor.no
Established in 2010, Hydor is an underwriting agent on behalf of the Brit Syndicate 2987 (Lloyd’s of London) offering
fixed premium Owner's Protection & Indemnity, Charterer's P&I, FD&D and other marine related insurance products.
Hydor is licensed and regulated by the Financial Supervisory Authority (FSA) of Norway.
Through Lloyd’s of London the Brit Syndicate 2987 holds security ratings from Standard & Poor's A+ (Strong).
The fixed premium facility looks at vessels up to 10,000 GT, providing limits up to USD 500 million for P&I and
Charterer’s Liabilities.
Whilst Hydor is an underwriting agent for the Brit Syndicate, the claims service is provided by C Solutions Limited, which
is a legal and claims consultancy staffed by lawyers from the major UK shipping law firms, former P&I Club Senior
Managers, Master Mariners and Engineers. C Solutions have been authorised by Hydor to handle all claims exclusively.
Reinsurance Carrier: Lloyd’s of London [Brit Syndicate 2987]

S&P Information: A+
Location: Oslo, Norway
33% Norway 27% General Cargo

13% Germany 15% Offshore
9% Greece 12% Tanker
6% Denmark 11% Other
6% America 8% Ferry
6% Middle East 7% Bulker
6% Russia 7% RORO
5% Turkey 6% Fishing
4% Greenland 4% Tug
3% France 2% Container
3% Africa 1% Reefer
2% Far East
2% Singapore
2% Cyprus

2011 2010 2009 2008 2007
Premium Income $ 2,000,000 - N/A N/A N/A
Claims Incurred $ 100,000 - N/A N/A N/A
Surplus/ Deficit $ 1,900,000 - N/A N/A N/A

2011 2010 2009 2008 2007
Annual Gross Tonnage Not Disclosed

• Hydor also provides insurance products for Hull & Machinery, Energy (mainly for Norwegian focused operators) as well as offering Cargo insurance
on a standalone basis and for traders in combination with charterers P&I.
• All claims are handled from C Solutions London headquarters (Lloyd's Building) and from dedicated branch offices in Newcastle, Monaco, Greece,
Dubai, India, Hong Kong, Shanghai, Australia and through a commercial and legal network of correspondents around the world.
• Hydor’s 2012 Premium Income is estimated around US$ 5 Million.
17
INGOSSTRAKH INSURANCE CO www.ingos.ru
Ingosstrakh Insurance Co. is a private federal level Insurance Company, which was founded in 1947, based in Moscow, Russia.
The facility offers P&I, FD&D, H&M, Cargo and other marine related insurance solutions. The insurer has an international
portfolio, however it holds a leading share of the Russian P&I Market giving particular preference to ship owners from
Russia, CIS and East European Countries.
The facility offers limits up to USD 500 Million for P&I and US$ 1 Million for FD&D. Ingosstrakh covers in excess of
1,000 units, handling a large range of vessels from smaller inland and costal craft, to larger ocean going vessels in
excess of 20,000 GT. The facility does not cater to large tankers, cruise vessels or U.S. based business.
The facility has performed consistently well over the last twelve years with an aggregate loss ratio of 85.3%
The company is rated BBB- by Standard & Poor’s and a National Scale rating of ruAA++.
Reinsurance Carrier: Not Disclosed

S&P Information: BBB- (Local National Rating ruAA+)
Limits offered: US$ 500 Million (US$ 1 Million for FD&D)
Vessel Cap: No limit, however 90% of the portfolio is <10,000 GT
Location: Moscow, Russia
Not Disclosed 37% Dry Cargo

17% Other
16% Tug & Barge
11% Fishing
9% Tanker
4% Bulkers
2% Container
2% Passenger
2% RORO

2011 2010 2009 2008 2007
Premium Income $ 16,250,000 $ 16,750 000 $ 16,750,000 $ 16,250,000 $ 16,100,000
Claims Incurred $ 12,025,000 $ 8,542,500 $ 18,592,500 $ 17,062,500 $ 17,227,000
Surplus/ Deficit $ 4,225,000 $ 8,207,500 -$1,842,500 -$ 812,500 -$ 1,127,000

2011 2010 2009 2008 2007

• Hull & Machinery - Increase Value - Loss of Hire / Freight
• War – Builders Risks – Cargo – Carriers and Liability Rolling Stock
18
LODESTAR MARINE LIMITED www.lodestar-marine.com
Lodestar Marine Limited (Lodestar) was established in 2012 and will provide fixed premium P&I insurance solutions. Lodestar
is a partnership, backed by Tawa Plc, part of Groupe Artémis, a family owned investment company with consolidated assets in
excess of Euro 27 Billion.
Lodestar comprises of a team of experienced underwriters and claims executives plus in-house surveyors, supported by
further administration staff based in Gloucester, under contract with Pro Insurance Solutions Limited.
The facility will write Fixed Premium P&I risks, with limits up to USD 500 Million in co-operation with RSA and other "A"
rated insurers who will provide security. Typical vessels insured by Lodestar will not exceed 10,000 Gross Tons.
A global network of over 250 Correspondents has been established. In the event of a claim, security can be provided by
either a letter of undertaking or bank guarantee. Furthermore, Lodestar is in the process of finalising Flag State approval
for the issuance of Blue Cards with acceptance already received from a number of Authorities including United Kingdom,
Netherlands, Hong Kong and Australia etc.
Lodestar is authorised and regulated by the FSA as an appointed representative of Pro Insurance Solutions Limited.
Reinsurance Carrier: Lloyds of London [RSA and other A rated reinsurers]

S&P Information: A
N/A N/A

2011 2010 2009 2008 2007
Premium Income N/A N/A N/A N/A N/A
Claims Incurred N/A N/A N/A N/A N/A
Surplus/ Deficit N/A N/A N/A N/A N/A

2011 2010 2009 2008 2007
Annual Gross Tonnage N/A N/A N/A N/A N/A

• Lodestar insurance products include; charterers liabilities, specialist operations, salvors liability, ship owners liability (SOL), contractual liability, war risks
(P&I), extended towers liability and FD&D.
19
NAVIGATORS INSURANCE COMPANY www.navpandi.com
Established in 2004, the Navigators Insurance Group set up a fixed premium P&I facility protecting ship owners, managers
and charterers against liabilities arising out of operating their vessels.
Today Navigators P&I, based in London, offers fixed-cost Protection & Indemnity cover to vessels in coastal, short-sea and
limited Ocean trades. The facility offers limits up to USD 500 million and looks to insure vessels up to 10,000 gross tons.
Navigators underwriting profile looks at all types of vessels, excluding passenger vessels and those with U.S. Flag, cover
is also available on a worldwide trading basis, excluding U.S. waters.
In addition to Owner’s P&I, Navigators can also offer contractual liabilities as an extension of the main P&I coverage.
Charterer’s Liability is also available to vessels below 10,000 GT.
Navigators Insurance Company and Navigators Specialty Insurance Company are both rated ‘A’ (Strong) by Standard
& Poor’s.
Reinsurance Carrier: Navigators Insurance Company

S&P Information: A
37% UK/Europe 58% Containers/General Cargo

24% Asia 13% Tug & Barge
13% South America 12% Other
10% Mexico and 8% Dry Bulk
Central America
7% Tankers
9% Middle East
2% Offshore
5% Africa
2% Other

2011 2010 2009 2008 2007
Premium Income $ 22,500,000 - - - -
Claims Incurred - - - - -
Surplus/ Deficit - - - - -

2011 2010 2009 2008 2007

• Navigators looks at all types of operators and tonnages up to 10,000 GT, however the facility does not cater to passenger, cruise, private/ pleasure
yachts or U.S. Flagged business.
20
OSPREY UNDERWRITING AGENCY LIMITED www.special-risks.co.uk
Established in 1991, Osprey Underwriting Agency is a specialist P&I fixed premium insurance provider. Celebrating their
21st year this year, Osprey is the longest established fixed premium insurer in London.
The Agency provides insurance services to ship owners on a variety of vessel types and operations, with a focused portfolio
of tugs, barges and fishing vessels.
The facility caters for vessels of up to 25,000 GT, engaged in the carriage of dry cargoes and up to 10,000 GT for all other
vessel types. Osprey cannot provide insurance for tankers carrying persistent oil cargoes. Coverage can be provided on a
worldwide basis, which is backed up by an extensive global network of correspondents and Lloyd’s agents.
Osprey is actively looking to expand its non-US book of business with a focus on Asia, whilst maintaining its leading position
as providers of U.S. Primary P&I Insurance.
Reinsurance Carrier: Lloyds of London [Various Syndicates]

S&P Information: A+
Vessel Cap: Up to 25,000 GT (Dry Bulk) and 10,000 GT all other vessel types
66% USA 49% Tugs & Barges

14% Europe 25% Fishing
7% Caribbean 14% Oil Field Services
5% Asia 6% Other
4% South America 3% Passenger
2% Other 3% Dry Cargo
1% Middle East
1% Africa

2011 2010 2009 2008 2007
Premium Income $34,000,000 $34,000,000 $31,000,000 $27,000,000 $21,000,000
Claims Incurred Not Disclosed
Surplus/ Deficit Not Disclosed

2011 2010 2009 2008 2007
Annual Gross Tonnage Not Disclosed - - - -

• USA Flagged business is limited to USD 1 Million
• H&M can be offered in combination of P&I upon request, up to a value of USD 12.5 Million including IV
• Specialist Marine Employer’s Liability and Marine General Liability coverage is also available
• Osprey does not write tankers carrying persistent cargoes (i.e. dirty products)
21
RAETSMARINE BV www.raetsmarine.com
RaetsMarine BV was founded in 1993, initially writing charterers liability insurance only. Today, RaetsMarine BV are
underwriting agents of Amlin Corporate Insurance BV, where they provide P&I, FD&D, Charterers Liability and other
marine related products.
The “Owners P&I” facility targets small to medium sized vessels, up to 25,000 GT, as well as supply vessels, fishing boats,
tugs and barges and other specialist units.
For Charterers Liability, RaetsMarine has no restrictions on vessel type, size, age or territory. The facility currently serves
over 1,000 charterers, including traders, operators, NVOCC's and others chartering vessels, offering limits up to US$ 500
Million (for both owned and chartered business).
RaetsMarine BV is backed by Amlin Corporate Insurance BV which is A- rated by Standard and Poor’s.
Reinsurance Carrier: Amlin Corporate Insurance BV

S&P Information: A-
Location: Rotterdam, Netherlands (with underwriting authority in London, United Kingdom)

28% Asia-Pacific 17% Specialist Craft
8% Middle East/India 16% Tug
5% Central South America 15% Fishing
2% Africa 15% Barge
1% North America 7% Tankers
1% Russia & CIS 5% Other
4% Passenger
2% Bulk Carrier

2011 2010 2009 2008 2007
Premium Income $ 95,500,000 - - - -

2011 2010 2009 2008 2007

• RaetsMarine BV has branch offices in Paris, London and Singapore.
• The RaetsMarine Charterer products also offers, Bunker Insurance, Kidnap and Ransom Insurance, Charterers’ Piracy, Trade Disruption Insurance,
Detention Insurance, Freight Insurance, Shipowners’ Liability (SOL) Insurance and War Risk Insurance.
• Additional Covers also include, Multimodal Insurance (Ports and Logistics), Marine Cargo Insurance, Marine Hull Insurance, Marine Specialist Covers,
Marine Defence Insurance (FD&D), Blue Card – Bunker Convention Liability Cover
22
ROSGOSSTRAKH LTD www.rgs.ru
Established in 1921, Rosgosstrakh Ltd is one of the leading Insurance companies in Russia. In 2010 the insurance company
was privatized and today it employs over 100,000 professionals in 83 regional branches comprising of 3,000 offices
throughout Russia.
As a Marine Insurer, Rosgosstrakh is the third largest carrier in Russia, which provides H&M and P&I insurance solutions,
catering to vessels up to 25,000 GT (and 8,500 GT for tankers), offering limits up to 100 Million. The insurer currently
handles in excess of 580 vessels, with a combined GT of 1,005,019 (based on 2011 policy year).
RGS is accredited by MLIT, Japan and UMA of Turkey as well as the maritime authorities and flag states such as Russia,
Liberia, Malta, Panama and others. The insurer is also expected to become a member of BIMCO by the end of 2012.
RGS is locally rated by Expert Ra and currently holds a rating of A++
Reinsurance Carrier: USD 500,000 Retention (with a reinsurance treaty with various A rated carriers)
S&P Information: Unrated (Local Rating - Expert Ra A++)
Limits offered: US$ 100Million
Vessel Cap: Up to 25,000 GT with tankers up to 8,500 GT
Location: Moscow, Russia
100% Europe 30% Tanker

28% Other
20% Tug
11% General Cargo
4% Passenger
3% Barge
2% Fishing
1% Bulker
1% Reefer
1% RO-RO
1% Supply

2011 2010 2009 2008 2007
Premium Income $ 3,885,055 $ 3,286,643 $ 1,943,532 $ 744,480 -

2011 2010 2009 2008 2007
Annual Gross Tonnage 1,005,019 1,038,500 562,170 232,258 78,415

• Other products include:
• Hull & Machinery insurance
• Yacht insurance
• Cargo insurance, as well as other liabilities (including terminals, ports, stevedores etc.)
23
24
NON-INTERNATIONAL GROUP
P&I MUTUAL MARKET
FACTS AND FIGURES
25
CEYLON SHIP OWNERS MUTUAL P&I CLUB www.ceylonpaiclub.com/en
Established in 2011, the Ceylon Ship Owners Mutual P&I Club was created by members of the Asian ship owning
community, which is incorporated in Sri Lanka, as a company limited by guarantee. The Club only offers its members
Mutual Protection and Indemnity insurance.
The Club management and operational undertakings are conducted by the Ceylon P&I Club Management Ltd, head
quartered in Colombo. The P&I Club are supported by Asian and Lloyds of London reinsurers.
Currently the focus of the Clubs expertise is regional to the Indian Ocean and South China Sea shipping industry.
However the club will expand by offering its product to all geographical regions in the future.
The Club offers limits of liability up to USD 500 Million and can cater to all vessel GT types and tonnages/ including
Non-IACS classed vessels.
Reinsurance Carrier: Kuwait Re – Lloyds of London

S&P Information: Unrated
Vessel Cap: No Limit
Location: Colombo, Sri Lanka
74% Middle East 78% Tanker

18% India 10% General cargo
8% Far East 8% Bulker
4% Other Vessels

2011 2010 2009 2008 2007
Premium Income $5,412,554 N/A N/A N/A N/A
Claims Incurred $1,037,112 N/A N/A N/A N/A
Surplus/ Deficit N/A N/A N/A N/A N/A

2011 2010 2009 2008 2007
Annual Gross Tonnage 1,178,444 N/A N/A N/A N/A
26
CHINA SHIPOWNERS MUTUAL

ASSURANCE ASSOCIATION www.cpiweb.org
The China Shipowners Mutual Assurance Association was established in 1984, based in Beijing, China, offering mutual P&I,
Legal Defence, Charterers Liability and Hull insurance solutions to its Members. In 1994, the CPI set up a service office in
Hong Kong, with additional representative offices in the major ports of China's mainland, such as Shanghai and Dalian.
The CPI is not a member of the International Group of P&I Club’s, however the Club does rely on reinsurance arrangements
to offer its Members IG-Club limits, through a co-insurance arrangement with the Skuld, Steamship Mutual, UK Club and the
West of England.
The Club has a growing portfolio of predominately Chinese Members and has more recently attracted new Members from
Hong Kong, Singapore and other parts of Asia. The Club has an exceptionally strong free reserve amounting to US$ 686
Million, which would put CPI second to Gard in terms of free reserve strength (compared to IG-Group Club free reserves).
Reinsurance Carrier: Co-Insured with International Group P&I Club (Skuld, SSM, UK and WofE)
Limits offered: International Group P&I Club Limits
Vessel Cap: N/A
Location: Beijing, China
100% Asia Not Disclosed

2011 2010 2009 2008 2007
Premium Income $ 53,300,000 $ 46,000,000 $ 46,400,000 $ 37,300,000 $ 34,200,000
Claims Incurred $ 16,500,000 $ 14,400,000 $ 17,300,000 $ 18,600,000 $ 16,300,000
Surplus/ Deficit
Note: Most recent two policy years do not include 20% supplementary Call

2011 2010 2009 2008 2007
Annual Gross Tonnage 27,800,000 24,000,000 17,900,000 16,500,000 14,500,000

• The CPI’s estimated supplementary call rate is 20%, while the estimated release call rate is 35%.
• The Club has not required an unbudgeted supplementary call since 2003.
27
HELLENIC MUTUAL P&I & WAR

RISKS ASSOCIATION www.mutual.gr
The Hellenic P&I Mutual was established in 2007, however commenced trading in 2011, providing P&I, FD&D and War
Risks Insurance predominantly to the Greek shipping community. The facility offers limits of liability up to US$ 500 Million
(coverage up to US$ 1 Billion is also available).
The insurer will initially focus on writing passenger and dry cargo vessels up to 25,000 GT, which are owned and
operated by Greece ship owners and operators.
The Hellenic P&I Mutual are managed by Agion Insurance Company SA, who are based in Greece and are in the process
of setting up a London based representative office.
Reinsurance Carrier: Lloyd’s of London (Various Syndicates

Location: Athens, Greece
80% Europe 40% RORO

20% Middle East 30% Bulkers
30% Tankers

2011 2010 2009 2008 2007
Premium Income $ 1,255,406 $ 332,592 N/A N/A N/A
Claims Incurred $ 500,000 - N/A N/A N/A
Surplus/ Deficit $ 755,406 - N/A N/A N/A

2011 2010 2009 2008 2007
Annual Gross Tonnage N/A N/A N/A N/A N/A

• H&M (Hull value up to USD100 million any one vessel), War Risks on Hull & Machinery, Loss of Hire, Crew Liabilities, War P&I, Kidnap and Ransom,
K&R LOH and Oil Pollution.
28
KOREA SHIPOWNERS MUTUAL

P&I ASSOCIATION www.kpiclub.or.kr
The Korea Shipowners Mutual P&I Association was established in 2000, offering fixed premium P&I solutions, as well as
other marine related insurances. KPI operates as a mutual organisation (not for profit), covering in excess of 900 vessels,
commanding a collective market share of 10 Million GT, with a premium income of approximately US$ 30 million (based
on 2011 results).
The facility offers P&I limits of liability up to US$ 300 Million (US$ 1 Billion is also available in some cases), backed by
reinsurers from Lloyd’s of London, Korean Re and ACR.
KPI targets a large tonnage range of merchant vessels ranging up to 100,000 GT for dry cargo vessels and up to
10,000 GT for tanker tonnages. The majority of their portfolio consists of Korean Members, which makes up 97%
of the Club.
Reinsurance Carrier: Lloyd’s of London, Korean Re and ACR

Vessel Cap: Up to 100,000 GT (tankers up to 10,000 GT)
Location: Seoul, Korea
97% Korea 59% Bulk/General Cargo

3% Asia-Pacific 10% Container
9% Other
7% Car Carrier
5% Tanker
4% Passenger
3% Fishing
3% Tug & Barge

2011 2010 2009 2008 2007
Premium Income $ 30,184,000 $ 25,055,000 $ 19,066,000 $ 11,808,000 $ 8,288,000
Claims Incurred $ 16,700,000 $ 11,965,000 $ 11,873,000 $ 8,106,000 $ 3,993,000
Surplus/ Deficit $ 13,484,000 $ 13,090,000 $ 7,193,000 $ 3,702,000 $ 4,295,000

2011 2010 2009 2008 2007
Annual Gross Tonnage 10,007,000 8,685,000 7,338,000 4,996,000 3,561,000

• 900+ Ships Entered
• KPI’s Blue Cards are accepted by Japan, India, Singapore, UK and U.S.A.
Additional Products Include:

• Charterer’s Liability, Damage to Hull, FD&D, Shipowners Liability and Slot Charterer’s Liability.
29
30
NON-IG CHARTERERS SPECIALIST FACILITIES
FACTS AND FIGURES
31
CHARTERAMA BV www.charterama.nl
Charterama BV was established in March 2009, based in Rotterdam, Netherlands, as an underwriting agency offering a
full range of Charterers’ P&I coverage, the facility is able to respond worldwide, with their extensive global network of
correspondents.
Charterama BV is backed by its primary carrier REAAL Schadeverzekeringen N.V., along with reinsurance through
Munich Re, Chartis and Lloyds of London. REAAL Schadeverzekeringen holds a BBB+ Standard and Poor’s rating.
The facility specialises in Charterers’ Liability, Damage to Hull and FD&D coverage, offering limits up to US$ 100 Million
and US$ 2 Million for FD&D, additional “fringe” products, such as War and Bunkers insurance are also available.
Given the facilities modest size of five staff members, the facility has grown tremendously from a premium income of
US$ 3 Million in 2009, to US$ 10 Million in 2011.
Reinsurance Carrier: REAAL SchadeVerzekeringen N.V.

S&P Information: BBB+
Limits offered: Up to US$ 100 Million (Charterers Liability)
Vessel Cap: N/A
Location: Rotterdam, Netherlands
65% Europe 45% Bulkers

15% Asia Pacific 29% General Cargo
11% Americas 13% Tankers
9% Other 6% Reefers
5% Containers
2% Others

2011 2010 2009 2008 2007
Premium Income $10,000,000 $7,000,000 $3,000,000 N/A N/A

2011 2010 2009 2008 2007
OTHER INFORMATION /NEWS

Additional Fringe Covers Available:
• War cover • Detention cover
• Bunker cover • Piracy Loss of Hire
• Freight cover
32
CHARTERERS P&I CLUB www.exclusivelyforcharterers.com
The Charterers P&I club was founded in 1986, as a mutual insurance company, specialising in charterers liability insurance
and defence coverage. In 1999 the Club was demutualised and an underwriting agency was formed, backed by Lloyds of
London security, offering fixed premium charterers liability and other marine related products.
In 2009 the agency switched its security to Great Lakes Munich Re Group, which holds an S&P AA- rating.
Michael Else & Co., are the managers of the Club and provide all underwriting and claims support, though its global
correspondent network.
The facility provides limits of liability up to USD 500 million for charterer’s liability and up to USD 2 million for FD&D.
Reinsurance Carrier: Great Lakes - Munich Re Group

S&P Information: AA-
Vessel Cap: N/A
38% Europe 75% Bulkers

35% Asia 17% Liner
10% Middle East/India 5% Tankers
9% Australasia 3% Other
5% Africa
3% Americas

2011 2010 2009 2008 2007
Premium Income $ 27,200,000 $ 27,400,000 $ 26,500,000 $ 27,300,000 $ 24,100,000

2011 2010 2009 2008 2007

• The Charterers P&I Club do not write cruise or passenger business
Other Business Lines are as follows:

• Transmarine, is a Loss of Hire insurer for commercial vessels and also the cruise and passenger industry.
• Portside, a specialised insurer for Freight forwarders, NVOCC and similar business’s
33
NORWEGIAN HULL CLUB www.norclub.no
In 2008 the Club commenced underwriting Charterer’s Liability risks, today their portfolio commands a premium income
of around US$ 11 Million, with approximately 150 charterers & traders clients.
The Clubs’ charterer’s facility offers limits up to US$ 500 Million for traditional Charterer’s P&I and Damage to Hull.
FD&D for charterers is also available in addition to the Clubs extensive marine insurance product range.
The Norwegian Hull Club has a large share of the Norwegian ocean hull market and ranks amongst the largest pure
marine underwriters in the world.
Reinsurance Carrier: Not Disclosed

S&P Information: A-
Vessel Cap: N/A
Location: Bergen, Norway
48% Asia Pacific Not Disclosed

41% Europe
11% Other

2011 2010 2009 2008 2007
Premium Income $ 11,100,000* - - - -

2011 2010 2009 2008 2007
OTHER INFORMATION /NEWS

• The NHC can provide insurance solutions for Offshore Energy & Special Risks, Yachts, Marine Benefits Insurance and Construction All Risk Covers.
*Information provided by Elysian Insurance Services (2011 premium based on Charterers Liability Income only).
34
INDUSTRY STATISTICS
35
INDUSTRY STATISTICS
Observing and comparing industry statistics on the various International Group Club’s is relatively easy due to the
transparent and consistent nature in which the Club report on account, by contrast, analysing the various commercial
markets is an extremely difficult task. This is mainly due to the following reasons:
• The individual Markets’ willingness to release accurate premium, GT and claims figures;
• Inconsistencies in figures produced by the individual market facilities, as the majority of the declared premium income
also includes other marine lines, such as H&M and Charterers Liabilities etc.
Therefore, we must point out that some of the annualised premium income figures, shown below, do not give a true
representation on “pure P&I” income. To establish which P&I facilities command the majority market share, we set out
here below a table representing each individual market 2011 premium income, highlighting the market leaders:
COMMERCIAL P&I FIXED PREMIUM (OWNERS P&I)

MARKET SHARE BY 2011 PREMIUM INCOME
Pos. MARKET 2011 PREMIUM

INCOME
1. BRITISH MARINE US$ 125,000,000 44%
2. RAETSMARINE US$ 62,000,000 22%
3. OSPREY US$ 34,000,000 12%
4. NAVIGATORS US$ 22,500,000 8%
5. INGOSSTRAKH US$ 16,250,000 6%
6. HANSEATIC P&I US$ 15,800,000 5%
7. EAGLE OCEAN US$ 5,000,000 1.5%
8. ROSGOSSTRAKH US$ 3,800,000 1%
9. HYDOR US$ 2,000,000 0.5%
10. LODESTAR N/A
36
NON- IG MUTUAL P&I FACILITIES


INCOME
1. CHINA P&I CLUB US$ 53,000,000 59%
2. KOREA P&I CLUB US$ 30,100,000 33%
3. CEYLON P&I CLUB US$ 5,400,000 6%
4. HELLENIC P&I US$ 1,2500,000 2%
NON-IG CHARTERERS

INCOME
1. RAETSMARINE BV US$ 33,500,000 59%
2. CHARTERERS CLUB US$ 27,200,000 33%
3. NORWEGIAN US$ 11,000,000 6%
4. CHARTERAMA BV US$ 10,000,000 2%
37
RATING AGENCY ANALYSIS
Arthur J Gallagher (UK) Ltd (“AJG (UK)”) operates a market security policy which sets a minimum standard for insurance
markets which can be included on its acceptable market security list. A number of criteria are utilised to evaluate the financial
condition of these markets and one of the criteria used is the ratings allocated by either Standard & Poor’s (S&P) or A M Best.
The AJG (UK) security policy sets a minimum rating level of A- from these agencies as an indicator of acceptable security.
Accordingly where a security fails to meet the minimum criteria, we would direct your attention to your P&I Insurers financial
strength rating, where and when it falls below an S&P or AM Best A- rating and where this security no longer qualifies for
inclusion on the AJG (UK) market security list; requesting that you advise us if you wish us to attempt to source an alternative
market. In some cases it may be possible to arrange P&I cover with an S&P or AM Best ‘A’ rated carrier on similar terms.
This is something that we can discuss with you on an individual case by case basis. It is important that you carefully consider
maintaining your insurance with your current P&I insurer where the rating is below the AJG(UK) minimum of A- and that
should you decide to do so that you also understand that AJG (UK) are not responsible for the continuing performance of
any security and that any future credit risk associated with renewing the policy with your current insurer will be borne by you.
We would, therefore, draw your attention to the following ratings and respectfully request that, if you require us to look
at other options in respect of your risk here, you advise us accordingly as soon as possible
STANDARD AND POOR’S RATINGS
P&I FACILITY CURRENT RATING P&I FACILITY CURRENT RATING

BRITISH MARINE A+ NORWEGIAN CLUB A-
CEYLON P&I UNRATED KOREA P&I CLUB UNRATED
CHARTERERS P&I AA- HYDOR A+
CHARTERAMA BV BBB+ LODESTAR MARINE A
CHINA P&I UNRATED NAVIGATORS P&I A
EAGLE OCEAN BB+ OSPREY A
HANSEATIC P&I A RAETSMARINE BV A+
HELLENIC MUTUAL UNRATED ROSGOSSTRAKH LTD UNRATED
INGOSSTRAKH BBB-
STANDARD AND POOR’S RATINGS
‘Pi’ ratings are based on public data only; others are based on a periodic review by S&P analysts.
Ratings BBB or higher are regarded as having financial security characteristics that outweigh any vulnerabilities, and are
likely to have the ability to meet financial commitments.
Ratings BB or lower are regarded as having vulnerable characteristics that may outweigh the strengths.
AA: “Very Strong” financial security characteristics. BB: “Marginal” financial security characteristics. Positive
attributes exist, but adverse business conditions lead
A: “Strong” financial security characteristics, but is
to insufficient ability to meet financial requirements.
somewhat more likely to be affected by adverse
business conditions than are insurers with B: “Weak” financial security characteristics. Adverse
higher ratings. business conditions will likely impart the ability to
meet financial commitments.
BBB: “Good” financial security characteristics, but is
more likely to be affected by adverse business + or - Signs show relative standing within the major
conditions than are higher rated insurers. rating category
38
INDUSTRY STATISTICS
MAJOR LIMITING CONVENTIONS & STATUTES
AFFECTING P&I RISKS
39
DEVELOPMENTS IN THE PAST 18 MONTHS
POLLUTION LEGISLATION
In the wake of the ‘Deepwater Horizon’ incident, there was a perhaps understandable call for substantial increases in the
OPA 90 and Trust Fund limits in the USA. Pollution legislation was reviewed in Congress and in the Senate but, following
initial demands for instantaneous action, the review lost momentum at the expense of other legislative matters and mid-
term elections. Subsequent to the knee jerk reaction, legislators’ resolve appears to have been weakened in the face of
shipowners’ assertions that the problem is not one caused by the carriers of oil and that substantial increases in the
shipowners’ liability ought not be warranted.
Focus instead seems to be shifting to the offshore/ exploration sector and the oil companies themselves but, even here,
increases in potential liability look set to be less severe than initially called for. Instead of major change, OPA 90 may be
amended to insert a mechanism to allow limits to be increased in the future. These would be in addition to the regular,
inflation-based adjustments.
Chinese pollution legislation, which was put in place last year and mirrors the CLC/Fund regime has been further delayed
in 2011. The effective date for compliance with the requirement to appoint an approved spill response contractor came
into force on 1 January 2012 but Club approval of such operators has been slow-moving, arguably due to a lack of
quality in the field.
EU 3RD MARITIME SAFETY PACKAGE
EU Member States have until 1 January 2012 to implement the directives of the EU 3rd Maritime Safety Package, which
came into force in June 2009. The Passenger Liability Regulation (‘PLR’), which is the part of the 3rd Maritime Safety
Package that deals with passenger liabilities, will come into force on 31 December 2012, without the need for national
implementation. The provisions of PLR essentially mirror those of the 2002 Protocol to the Athens Convention, with only
minor differences. However, EU Member States are not yet in a position to ratify the Protocol itself and are unlikely to be
so by 31 December 2011.
Many EU Member States have indicated that they will require Blue Cards under the PLR. Traditionally, however, Clubs
have only issued Blue Cards in response to international conventions as opposed to regional regulation. Discussions are
under way to ensure that there is a consistent approach on both the need for and the uniformity of Blue Cards under the
PLR and the Athens Convention
ILO MARITIME LABOUR CONVENTION
The ratification of the Maritime Labour Convention (‘MLC’) by Luxembourg in October brings the total of ratifying states
to 22, 5 of which are in the EU. 30 countries are required to ratify the MLC, it having already attained the ‘33% of world
tonnage target’ with over 54% represented. In 2007, the European Union authorised its Member States to ratify the
Convention by the end of 2010. 22 States have yet to do so, although none of these have indicated any opposition to it.
Most liabilities under the MLC will fall under normal Club cover, although there are two areas which may cause problems.
Firstly, the MLC requires financial security to be in place to cover abandonment and repatriation of crew where the
shipowner becomes insolvent. Secondly, the MLC makes the shipowner responsible for non-work-related injuries and
illnesses and those arising from war, terrorism and bio-chemical hazards. Normal Club cover does not fully respond to
these risks and so, as things stand, shipowners may not be fully insulated from the impact of the MLC.
40
1 CONVENTION ON LIMITATION OF LIABILITY FOR MARITIME CLAIMS (LLMC),

1976 (IN FORCE 1 DEC 1986)
This convention applies to all vessels involved in incidents in signatory states, except such incidents to
which the Civil Liability Convention (See Section 3) applies. At 31 October 2011, it has been ratified
by 52 states, covering 51.95% of world tonnage. The right to limit losses under this convention is lost
if the incident involves a personal act or omission carried out intentionally or recklessly and with the
knowledge that loss would result. Liability under the convention is calculated in accordance with the
following formulae (note that, at 22 November 2011, SDR 1 = approximately US$ 1.56):
1.1 PERSONAL INJURY/ LOSS OF LIFE
VESSEL SIZE FORMULA

500 GT or less Minimum SDR 333,000
501-3,000 GT Add SDR 500 per GT to the above sum
3,001-30,000 GT Add SDR 333 per GT to the above aggregate
70,001 GT or more Add SDR 167 per GT to the above aggregate
EXAMPLE
25,000 GT SDR 8,909,000
75,000 GT SDR 21,409,000
1.2 PROPERTY
VESSEL SIZE FORMULA

500 GT or less Minimum SDR 167,000
501-30,000 GT Add SDR 167 per GT to the above sum
EXAMPLE
25,000 GT SDR 4,258,500
75,000 GT SDR 10,508,500
2 1996 PROTOCOL TO THE 1976 LLMC (IN FORCE 13 MAY 2004)
This amends the limits of compensation payable and has been adopted by 43 states encompassing
45.63% of world tonnage at 31 October 2011. These limits are now as follows:
2.1 PERSONAL INJURY/ LOSS O F L I F E
VESSEL SIZE FORMULA

2,000 GT or less Minimum SDR 2,000,000
2,001-30,000 GT Add SDR 800 per GT to the above sum
EXAMPLE
25,000 GT SDR 20,400,000
75,000 GT SDR 50,400,000
41
2 1996 PROTOCOL TO THE 1976 LLMC (IN FORCE 13 MAY 2004) CONT.
2.2 PROPERTY
VESSEL SIZE FORMULA

2,001-30,000 GT Add SDR 400 per GT to the above sum
EXAMPLE
25,000 GT SDR 10,200,000
75,000 GT SDR 25,200,000
3
INTERNATIONAL CONVENTION ON CIVIL LIABILITY FOR OIL POLLUTION
DAMAGE (CLC), 1969 (IN FORCE 19 JUNE 1975), PROTOCOL TO CLC, 1992
(IN FORCE 30 MAY 1996)
The Civil Liability Convention covers those who suffer oil pollution damage resulting from maritime
casualties involving oil-carrying ships. The Convention places the liability for such damage on the
owner of the ship from which the polluting oil escaped or was discharged. The original Convention has
been largely replaced by the 1992 Protocol, which has been adopted by 126 states, encompassing
96.93% of world shipping as at 31 October 2011. Liability is strict and insurance is compulsory.
Liability under the convention is calculated in accordance with the following formulae
3.1 LIABILITY UNDER CLC (1992 P ROTOCOL
VESSEL SIZE FORMULA

5,001 GT or more Add SDR 420 per GT to the above sum
Maximum SDR 59,700,000 (equivalent to 140,000 GT) Example
EXAMPLE
25,000 GT SDR 11,400,000
75,000 GT SDR 32,400,000
Following the spill resulting from the loss of the “Erika”, the limits were increased
under an amendment in 2000 as follows:
3.2 LIABILITY UNDER CLC AS AMENDED IN 2000
VESSEL SIZE FORMULA

5,001 GT or more Add SDR 631 per GT to the above sum
Maximum SDR 89,770,000 (equivalent to 140,000 GT)
EXAMPLE
25,000 GT SDR 17,130,000
42 75,000 GT SDR 48,680,000
4
INTERNATIONAL CONVENTION ON THE ESTABLISHMENT OF AN
INTERNATIONAL FUND FOR COMPENSATION FOR OIL POLLUTION DAMAGE
(FUND), 1992 PROTOCOL (IN FORCE 30 MAY 1996)
The purpose of this Fund is to provide compensation for pollution damage to the extent that the
protection afforded by the 1969 Civil Liability Convention is inadequate. It is also intended to give relief
to ship owners in respect of the additional financial burden imposed on them by the 1969 Civil Liability
Convention, with such relief being subject to conditions designed to ensure compliance with safety at
sea and other conventions. The Fund is financed by receivers of persistent oil cargoes in signatory
states, via a governmental levy. It is managed by an inter-governmental organisation, the IOPC Funds.
The original 1971 Fund was denunciated in 1998, being effectively replaced by the 1992 Fund.
Subsequently the limits in that Fund were increased, effective 2003, by way of a protocol adopted in
2000. 108 states have adopted the 1992 Protocol at 31 October 2011, covering 94.31% of the
world fleet. The maximum amount payable under the 1992 Protocol was SDR 135 million, inclusive of
the ship owners’ primary contribution under the 1992 CLC Protocol. The 2000 protocol increased this
maximum sum to SDR 203 million, inclusive of the primary contribution under the 1992 CLC Protocol.
5 SUPPLEMENTARY FUND, 2003 (IN FORCE 3 MAR 2005)
The aim of this Fund is to supplement the compensation available under the 1992 Civil Liability
and Fund Conventions with an additional, third tier of compensation. The Protocol is optional and
participation is open to all States which are party to the 1992 Fund Convention. At 31 October 2011,
27 states have acceded, encompassing 21.42% of the world fleet.
As with the 1992 Fund, the Supplementary Fund is financed by levies on receivers of persistent oil
cargoes. The total amount of compensation payable for any one incident will be limited to a combined
total of SDR 750 million inclusive of the amount of compensation paid under the existing CLC/Fund
Convention system.
6 TANKER OIL POLLUTION INDEMNIFICATION AGREEMENTS
In recognition of the potential disparities between contributions by ship owners and receivers
of cargo towards the cost of pollution incidents, two agreements came into force in 2006 which
sought to remedy the situation.
Under STOPIA, owners of small tankers of 29,548 GT or less indemnify the 1992 Fund for the
difference between their 1992 CLC liability and SDR 20 million. Under TOPIA, all tanker owners
indemnify the 2003 Supplementary Fund in respect of 50% of any claim falling on that fund.
43
7 US OIL POLLUTION ACT (OPA), 1990
The USA is not party to any of the above pollution related conventions. Instead, there are specific
statutes which affect any vessels discharging oil, oil products or oil by-products in US waters. The main
one of these is OPA 1990, which imposes strict liability; the only defence being acts of war, acts of
God or that the loss was caused solely by the actions of a third party. In July 2006, the US Coast
Guard & Maritime Transportation Act 2006 amended limits under OPA 1990 as set out in the table
below. For non-tank vessels, the above increases were immediate. For tank vessels, they came into
force in October 2006.
7.1 LIMITS OF LIABILITY UNDER OPA 1990 AS AMENDED IN 2006
VESSEL SIZE FORMULA

Single Hull Tanker: 3,000 GT or less US$ 3,000 per GT with minimum US$ 6,000,000
Single Hull Tanker: 3,000 GT or more US$ 3,000 per GT with minimum US$ 22,000,000
Double Hull Tanker: 3,000 GT or less US$ 1,900 per GT with minimum US$ 4,000,000
Double Hull Tanker: 3,000 GT or more US$ 1,900 per GT with minimum US$ 16,000,000
Other Vessels US$ 950 per GT with minimum US$ 800,000
EXAMPLE
25,000 GT Single: US$ 75,000,000 Double: US$ 47,500,000
The US Coast Guard has subsequently announced increases in liability limits to reflect inflationary
erosions since the 2006 change. These came into effect on a provisional basis on 1 July 2009 and
were formally adopted with effect from 5 February 2010. Further increases are likely every three years.
7.2 AMENDED LIMITS OF LIABILITY UNDER OPA 1990 WITH EFFECT FROM 5 FEBRUARY 2010
VESSEL SIZE FORMULA

Single Hull Tanker: 3,000 GT or less US$ 3,200 per GT with minimum US$ 6,408,000
Single Hull Tanker: 3,000 GT or more US$ 3,200 per GT with minimum US$ 23,496,000
Double Hull Tanker: 3,000 GT or less US$ 2,000 per GT with minimum US$ 4,272,000
Double Hull Tanker: 3,000 GT or more US$ 2,000 per GT with minimum US$ 17,088,000
Other Vessels US$ 1,000 per GT with minimum US$ 854,400
EXAMPLE
The US has also established an Oil Spill Liability Trust Fund (‘OSLTF’) which supports OPA 90 and is
funded by a tax on oil produced and imported into the USA. The OSLTF responds where a responsible
party denies liability or fails to meet that liability or where the first level of liability is insufficient to fund
all claims.
44
8 US COMPREHENSIVE ENVIRONMENTAL RESPONSE, COMPENSATION

AND LIABILITY ACT (CERCLA), 1980
This legislation is focused on ‘hazardous substances’. However, there are circumstances where both
CERCLA and OPA could apply to an incident involving a shipowner, operator, bareboat charterer etc.
Club cover is discretionary as regards CERCLA-related claims.
Limits of liability are as follows:
A) for vessels over 300 GT carrying a hazardous substance as cargo – the greater
of US$ 5 million or US$ 300 per GT;
B) for any other vessel over 300 GT – the greater of US$ 500,000 or US$ 300 per GT.
These limits did not change when the OPA 90 limits were raised in July 2009.
In respect of obligations under both OPA and CERCLA, Certificates of Financial responsibility
(COFRs) are required. As Clubs are unwilling to certify financial responsibility as required by the US
regulators, the COFR is generally provided by an independent issuing company, and covers the
aggregate of the CERCLA and OPA limits of liability.
EXAMPLE
A double hull tanker of 25,000 GT will need a COFR of US$ 55 million, comprising US$ 47,500,000
under OPA 1990 as amended plus US$ 7,500,000 under CERCLA.
9 ATHENS CONVENTION RELATING TO THE CARRIAGE OF PASSENGERS

AND THEIR LUGGAGE BY SEA (PAL), 1974 (IN FORCE 30 APR 1989)
The Convention consolidated and harmonized two earlier Brussels Conventions dealing with
passengers and luggage, which were adopted in 1961 and 1967 respectively. It establishes a regime
of liability for damage suffered by passengers carried on a seagoing vessel. It declares a carrier liable
for damage or loss suffered by a passenger, if the incident causing the damage occurred in the course
of the carriage and was due to either the fault or neglect of the carrier.
However, unless the carrier acted with intent to cause such damage, or recklessly and with knowledge
that such damage would probably result, he should be able to limit liability. For the death of, or personal
injury to, a passenger, this limit of liability is set at SDR 46,666 per passenger.
Liability is further limited for losses arising from acts of terrorism to the practically insurable amount.
With effect from 2006, this amount is SDR 250,000 per passenger, with an aggregate limit of SDR
340 million. Subsequent to the ratification of this convention (by 25 states to date, covering 40.46%
of the world’s fleet) the limitation amount has become increasingly inadequate. A 1990 protocol
increasing the limit to SDR 175,000 was not adopted (being ratified by only 6 minor states) and has
been superseded by the 2002 protocol. This is presently being ratified: so far only 7 states
representing 0.30% of world tonnage had done so at the close of October 2011.
45
9.1 PROPOSED LIMITS UNDER 2002 PROTOCOL TO PAL
TYPE OF LOSS LIMIT

Strict Liability Passenger Personal Injury / Death SDR 250,000 per passenger
Operator Negligence Passenger Personal Injury / Death SDR 400,000 per passenger
Loss or Damage to Cabin Luggage SDR 2,250 per passenger
Loss or Damage to Vehicle and Luggage therein SDR 12,700 per vehicle
Loss or damage to Other Luggage SDR 3,375 per passenger
In the interim, a number of individual States have introduced their own legislation, which increased
the limits applicable. For example, in the UK, the Merchant Shipping Act 1995, introduced in the
wake of the ‘Herald of Free Enterprise’ loss, applies a limit of SDR 300,000 per passenger, in
respect of personal injury or death.
In the USA, under the Limitation of Liability Act last modified in 1996, liability to passengers is
limited to US$ 420 times the GT of the vessel.
If this Convention is not ratified by 31 December 2012, which seems unlikely, the limits set by the
Passenger Liability Regulation (part of the EU Third Maritime Safety Package) will apply to EU
Member States. This regulation effectively adopts the Athens Convention into EU law, with a
number of minor supplementary clauses.
10 INTERNATIONAL CONVENTION ON CIVIL LIABILITY FOR BUNKER OIL
POLLUTION DAMAGE, (BUNKERS) 2001 (IN FORCE 21 NOV 2008)
The Bunker Convention reached its required criteria of 18 states’ ratification in November 2007 and,
by 31 October 2011, had 62 acceptances, covering 89.04% of the world fleet. The Convention covers
pollution caused by spills of oil carried as fuel onboard the vessel. The limits are the same as those
imposed under LLMC 1976, as amended by the 1996 Protocol.
11
INTERNATIONAL CONVENTION ON LIABILITY AND COMPENSATION FOR
DAMAGE IN CONNECTION WITH THE CARRIAGE OF HAZARDOUS AND
NOXIOUS SUBSTANCES BY SEA (HNS), 2010 (NOT YET IN FORCE)
The original 1996 HNS Protocol established a two tier compensation regime for amounts up to
SDR 250 million and has been ratified by 14 states or 13.61% of the world fleet as at 31 October
2011. A Focus Group was established in 2007 in order to address administrative concerns of the
ratifying states, particularly in respect of the operations of the second tier of compensation and the
difficulty in establishing how much HNS was received in any country.
46
A revised 2010 protocol, based on the findings of the above focus group, was adopted in April 2010 but
has not yet been ratified by any states. Under this protocol, the total compensation remains the same but
the shipowner’s maximum liability for an incident involving packaged HNS is increased from SDR 100
million to SDR 115 million. Thereafter, compensation would be paid by a second tier HNS Fund, financed
by cargo receivers. Shipowners’ liability for bulk HNS remains unchanged at SDR 100 million.
The revised protocol will enter into force eighteen months after at least 12 States (including at least 4
with over 2 million GT) express their consent to be bound by it. Additional conditions relate to cargo
receiving country contributions.
1.11 LIMITS OF LIABILITY UNDER HNS 1996
VESSEL SIZE FORMULA – BULK HNS FORMULA – PACK AGE DHNS

2,000 GT or less Minimum SDR 10,000,000 Minimum SDR 11,500,000
2,001-50,000 GT Add SDR 1,500 per GT to the above Add SDR 1,725 per GT to the above
50,001 GT or more Add SDR 360 per GT to the above Add SDR 414 per GT to the aggregate
Maximum SDR 100 million SDR 115 million
EXAMPLE
25,000 GT SDR 44,500,000 SDR 51,175,000
75,000 GT SDR 91,000,000 SDR 104,650,000
12 UN CONVENTION FOR THE INTERNATIONAL CARRIAGE OF GOODS WHOLLY

OR PARTLY BY SEA (ROTTERDAM RULES) 2009 (NOT YET IN FORCE)
In 1996, in attempts to harmonize liability regimes, the United Nations Commission on International
Trade Law (UNCITRAL) began a review of laws in the area of the international carriage of goods by
sea. An additional aim was to update the regimes to reflect modern transportation systems.
This resulted in the ‘Rotterdam Rules’ which became open for signature in September 2009 and will
enter into force 12 months after 20 states have ratified it. By 31 October 2011, 24 countries have
signed the Rules, including major shipping nations such as Greece, Norway and the United States.
Collectively, the 24 signatories account for around 25% of world trade. Noticeably, none of the major
Asian trading nations have signed the Rules. The Convention will come into force one year after
ratification by the 20th UN Member state. Whilst 24 have signed the Convention, only 1 state (Spain)
has actually ratified it as at 31 October 2011.
Although there remains widespread support for the Convention, the expectation is that it may be some
time before the Rules enter into force.
The Rotterdam Rules have eroded some of the traditional defenses available to sea carriers; for
example, the elimination of the ‘nautical fault’ defense. The obligation of due diligence has been
extended to apply throughout the duration of the voyage and limits of liability per package, or unit
of weight, have been increased beyond Hague-Visby and Hamburg Rules limits.
47
The table below contrasts the liability under the various regimes:
12.1 CONTRASTING LIABILITY UNDER ‘RULES’
‘RULE’ LIMITATION OF LIABILITY LIABILITY FOR DELAY

Hague (1934) £ 100 per package/unit N/A
Hague Visby (1968) Higher of SDR 2 per kg or SDR N/A
667 per package
Hamburg (1978) Higher of SDR 2.50 per kg or SDR 2.5 times freight on goods
delayed
835 per package/shipping unit subject to an upper limit if lost
Rotterdam (2009) Higher of SDR 3 per kg or SDR 2.5 times freight on goods
delayed
875 per package/shipping unit not to exceed limit under rules US
COGSA (1936) US$ 500 per package/unit N/A
48
CONTACTS
JONATHAN SUCKLING RICHARD STURGEON WAYNE GODFREY

Managing Director Divisional Director +44(0)20 7204 1841
+44(0)20 7204 6091 +44(0)20 7204 1887 +44(0)7500 109 608
+44(0)7825 059 591 +44(0)7825 059 631 [email protected]
[email protected] [email protected]
MALCOLM GODFREY TIM SULLIVAN WENDY NEEDHAM

Executive Director Divisional Director +44(0)20 7204 1854
+44(0)20 7204 1883 +44(0)20 7204 6295 +44(0)7557 845 556
+44(0)7789 003 238 +44(0)7500 059 595 [email protected]
ANDREW JAMES NICHOLAS WOLFE LAUREN OSMAN

Executive Director Divisional Director +44(0)20 7204 1885
+44(0)20 7204 6059 +44(0)20 7204 8539 [email protected]
+44(0)7825 059 536 +44(0)7500 109 606
NICOLA ELLIS GARY BRAND ISABEL SALCEDO

Divisional Director Associate Director +44(0)20 7204 6210
+44(0)20 7204 1892 +44(0)20 7204 6121 +44(0)7584 609 336
+44(0)7825 059 643 +44(0)7825 439 583 [email protected]
SIMON MAUDIT JENNY MANKELOW ALEX VULLO

Divisional Director Associate Director +44(0)20 7204 1891
+44(0)20 7204 6203 +44(0)20 7204 6225 +44(0)7500 109 607
+44(0)7825 059 521 +44(0)7825 609 337 [email protected]
MATTHEW MCCABE MATTHEW CRAMP

Divisional Director +44(0)20 7204 6051
+44(0)20 7204 6200 +44(0)7825 059 617
+44(0)7825 059 598 [email protected]
[email protected]
DISCLAIMER: The information contained in this market review has been compiled by Gallagher London from information provided by each insurer. This
review does not purport to be comprehensive or to give legal advice. While every effort has been made to ensure accuracy, Gallagher London cannot be
held liable for any errors, omissions or inaccuracies contained within the document. Readers should not act upon (or refrain from acting upon) information
in this document without first taking further specialist or professional advice.
49
Gallagher London is a trading name of Arthur J. Gallagher (UK) Limited which is authorised and regulated by the Financial Services Authority.
Registered address: 9 Alie Street, London, E1 8DE. Registered No. 1193013 England and Wales. www.ajginternational.com
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MARINE

P&I COMMERCIAL MARKET

Welcome from the Executive Director 3

Fixed Premium P&I Insurance Explained 4

Commercial P&I Market Environment 6

Future of the Commercial Market 7

Review of the last 18 Months 8

Non-IG P&I Market Overview 10

Commercial P&I Market Facts & Figures

• Eagle Ocean Agencies Inc 15

• Lodestar Marine Limited 19

• Navigators Insurance Company 20

• Osprey Underwriting Agency Limited 21

Non International Group P&I Mutual Market Facts & Figures

• Ceylon Ship Owners Mutual P&I Club 26

• Hellenic Mutual P&I & War Risks Association 28

• Korea Shipowners Mutual P&I Association 29

Non-IG Charterers Specialist Facilities Facts & Figures

• Charterers P&I Club 33

• Norwegian Hull Club 34

Rating Agency Analysis 38

Major Limiting Conventions & Statutes Affecting P&I Risks 40

MESSAGE FROM THE EXECUTIVE DIRECTOR MALCOLM GODFREY

WELCOME TO OUR FIRST COMMERCIAL P&I MARKET REVIEW

FIXED PREMIUM P&I INSURANCE EXPLAINED

WHAT IS FIXED PREMIUM P&I INSURANCE?

DO IG P&I CLUBS PROVIDE FIXED PREMIUM INSURANCE?

WHAT ARE THE DIFFERENCES BETWEEN COMMERCIAL MARKET AND

THE COMMERCIAL P&I MARKET ENVIRONMENT

NON-IG MARKET DEVELOPMENT (LAST FIVE YEARS: 2007 - 2012)

ESTABLISHED MARKET NEW ENTRANT SPECULATIVE MARKET EXIT

Charterers P&I Club Charterama BV *Tindall Riley Small

China P&I Club Eagle Ocean Marine

Hanseatic P&I Hellenic Mutual P&I

Korea P&I Club Lodestar Marine Ltd

Navigators P&I Rosgosstrakh P&I

Norwegian Hull Club

* A rumoured new P&I market facility, which AJG is following closely

THE FUTURE OF THE COMMERCIAL MARKET

Consolidation amongst the smaller facilities to command

REVIEW OF THE LAST 18 MONTHS

MARCH Charterama BV reinsurers, REAAL Schadeverzekeringen NV, downgraded by S&P from

NON-IG P&I MARKET OVERVIEW

FACILITY CARRIER ANNUAL PREMIUM/ TONNAGE/VESSEL

BRITISH MARINE QBE Insurance (Europe) Ltd US$ 125,000,000 12,600,000 GT

CEYLON P&I CLUB Mutual Insurance Company US$ 5,400,000 1,178,444 GT

CHARTERAMA BV REAAL Schadeverzekeringen US$ 10,000,000 Approx. 250 + Clients

CHINA P&I CLUB Mutual Insurance Company US$ 53,000,000 27,800,000 GT

EAGLE OCEAN MARINE American P&I Club/ US$ 5,000,000 454,211 GT

HANSEATIC P&I Insurance Consortium – US$ 15,800,000 2,050,000 GT

HELLENIC P&I MUTUAL Mutual Insurance Company US$ 1,250,000 -

INGOSSTRAKH Ingosstrakh US$16,250,000 1,029 vessels on risk

KOREA P&I CLUB Mutual Insurance Company US$ 30,100,000 10,007,000 GT

HYDOR Lloyds Brit Syndicate 2987 US$ 2,000,000 -

LODESTAR MARINE LTD RSA and Various - -

NAVIGATORS P&I Navigators Insurance Company US$ 22,500,000 2,200,000 GT

OSPREY Lloyds of London US$ 34,000,000 Approx. 3,000 vessels

RAETSMARINE BV Amlin Corporate Insurance BV P&I: US$ 33,500,000 13,000,000 GT

ROSGOSSTRAKH LTD Rosgosstrakh Ltd US$ 3,800,000 1,005,000 GT