Marine delay insurance mutual the Strike Club is to be subsumed into the world’s fourth-largest P&I club.
The Strike Club, which offers a range off marine delay covers, is to be integrated into the Standard Club. Both mutual insurers are managed by companies within the Charles Taylor group.
Under the plans, the Strike Club will continue as a member-controlled, dedicated mutual delay insurer, operating as a class of the Standard Club. It will be supervised by the current Strike Club board, which will become a Strike committee of the Standard Club.
It comes at a time when P&I clubs continue to look at their future strategies. While a number of high-profile P&I club mergers have been mooted but failed to materialise, many have sought to broaden the range of marine insurance products they offer. The deal will see the Standard Club become a leading underwriter of delay cover.
The Strike Club has about 150 members and has secured more than 40 new orders for mutual delay insurance in the past three years. The mutual premium has risen by 9% since 2015. Marine delay insurance covers members for the daily operating costs of ships held up by strikes, port closures, collisions, breakdowns, and other unexpected hold-ups.
Alain Le Guillard, president and chairman of the Strike Club, said, “Marine delay insurance provides valuable protection to shipowners and operators, protecting them from delays outside their control. At a time when the shipping market is facing difficult market conditions and financial pressures, our cover can make the difference between profit and loss on voyages for operators.
“Joining the Standard Club is an excellent move for the club. It will provide our members with long-term financial stability and S&P A-rated cover, while preserving the independence of operation, identity, and other valuable mutual characteristics of the Strike Club.”
In a statement, the two clubs said that once regulatory approval is obtained, the transaction will provide Strike Club members with the stability and A-rated financial security of being part of a larger mutual insurer with more than USD460 million of free reserves. It added that Standard Club members would benefit from access to marine delay insurance.
“Both clubs will benefit from the opportunity for synergies, greater efficiencies, and cost savings in governance, management, underwriting, and reinsurance,” the statement said.
Cesare D’Amico, chairman of the Standard Club, said, “This transaction is a win-win for members of both clubs. It increases our membership and enables us to offer valuable additional protection to members of the Standard Club. It extends our strategy of offering a wide range of insurance covers to our members and diversifying our sources of revenue. The Standard Club will also benefit from increased reserves from the Strike Club. I will look forward to welcoming the members of the Strike Club to the Standard Club.”