The "A' rated 150 million GT North P&I club has acquired Marine Shipping Mutual Insurance (MSMI), an 8 million GT hull and machinery club that has been in run-off since 1 July 2011.
MSMI was managed by North's management company, North Insurance Management Limited (NIML).Β
According to North's chairman Pratap Shirke, "North will now proceed to manage the run-off of MSMI's outstanding liabilities. Claims will continue to be handled by North's claims-handling team in substantially the same manner as they have been prior to completion, and former members and brokers should continue to contact the relevant member of North's team in respect of all ongoing matters.'
MSMI is now a wholly owned subsidiary of North and will be governed for the time being by a board comprising MSMI directors James Cowderoy, Rodney Eccleston, Albert Engelsman, Paul Jennings, Alan Wilson and Shirke. Jennings and Wilson are also joint managing directors of North and NIML.
"As a result of the acquisition, Steve Goodacre, Alex Lynch, Jebb Kitchen, Matthias Reith, Laurence Stuart-Hill, George Mouskas and James Warwick cease to be directors of MSMI and we thank them for their support and dedication,' says Shirke. "We would also like to thank all former MSMI members, brokers, reinsurers and other business partners for their loyalty and support over the years.'
According to Wilson, "Former MSMI members entitled to participate in the distribution of MSMI's reserves have recently received notice of an amount payable to them. It is also proposed that North will apply to transfer MSMI's business to North under part VII of the Financial Services and Markets Act 2000 and a further announcement will be made in respect of any such application at the appropriate time.'
Jennings added that the acquisition does not affect North's decision earlier this year to defer the launch of a fixed-premium hull and machinery product, though this remains under review. "We remain firmly committed to our long-standing strategic aim of expanding North's product range beyond its core protection and indemnity service, and will continue to consider the possibility of launching a hull and machinery product in the future,' he says.Β
MSMI had 8 million GT of entered tonnage, with 400 ships and 50 members. Directors of the 39-year-old club announced in January this year that it would cease underwriting on 30 June 2011. The club is based in Newcastle upon Tyne, UK and shares its management company with North.
North is a leading marine mutual liability insurer providing P&I, FD&D, war risks and ancillary insurance to 115 million GT of owned tonnage and 35 million GT of chartered tonnage, with 5000 ships entered by 400 members. It is also based in Newcastle upon Tyne with regional offices in Hong Kong, Piraeus and Singapore. The club is a leading member of the International Group of P&I Clubs, with approximately 12% of the group's owned tonnage. The 13 group clubs provide liability cover for approximately 90% of the world's ocean-going tonnage and, as a member of the group, North protects and promotes the interests of the international shipping industry.
Source: North P&I Club