Shipowners' Club Holds 2027 Renewal Premiums Flat
The Club's board decided no General Increase will apply to 2027 renewal premiums, with the Club absorbing higher reinsurance costs.
Updated on Nov. 3, 2026 in Corporate Finance
The Shipowners' Club's board resolved on 3 November 2026 that no General Increase will be applied to renewal premiums for 2027. The Club will absorb the expected rise in International Group reinsurance costs.
Why it matters
The decision keeps premiums unchanged for Members despite rising reinsurance costs, reflecting the Club's strong capital position. It is consistent with the Club's strategy of seeking premium increases only when absolutely required.
Half-year results showed a Combined Ratio of 100.1% and an underwriting deficit of US$ 0.2m, compared with 99.6% and a US$ 0.6m surplus a year earlier, while premium income rose by over US$ 15m. The size of the expected reinsurance cost increase has not been disclosed.
The players
The Shipowners' Club
A mutual protection and indemnity insurer owned by its shipowner Members, which sets renewal premiums and manages their claims.
The details
The Board met on 3 November 2026 and resolved that no General Increase would be applied for 2027. Managers will review individual Members' claims records and operational risks, applying premium or deductible adjustments where appropriate, while selective ship inspections and management audits continue.
Timeline
2024: investment result levels used as a benchmark.
2025: prior year claims developed favourably since year-end.
3 November 2026: Board met and resolved no General Increase for 2027.
2027: no General Increase applied to renewal premiums.
Market Landscape
Mutual marine insurers share large risks through the International Group's pooled reinsurance programme, so rising reinsurance costs for the Group affect all member clubs. The Club's decision to hold premiums flat places it in a position of absorbing that cost rather than passing it to Members in 2027.
Shipowner Members will see no General Increase on their 2027 renewal premiums, though individual adjustments may still apply based on their claims records and risks. The decision leaves premium costs stable for Members while the Club absorbs higher reinsurance expenses.
The takeaway
Mutual insurers with strong capital can shield members from cost swings, but individual claims records will still shape what each shipowner pays. Members with strong safety and claims records are the ones most likely to benefit from the Club's approach.
Further reading
Explore more on Corporate Finance to see how insurers and businesses manage costs and capital.
