The American Club has made significant progress in its 2026 P&I renewal, with positive developments reported across all lines of business. Gross tonnage for the Club's Class I mutual P&I entries increased modestly at the turn of the renewal, while the tonnage position since the 2025 renewal has seen a notable increase of 5%. This growth is a promising sign for the Club as it looks to build on its existing portfolio. The increase in gross tonnage is likely to have a positive impact on premium income and overall revenue.
The Club's Class II mutual FD&D and Class III charterers' liability portfolios were also renewed for 2026 on a similar basis, indicating a consistent approach to policy renewal. This consistency may be attributed to the portfolio management refinement undertaken in 2022/23, which has allowed the Club to better adapt to changing market conditions. The renewed policies are likely to provide stability and predictability for members, which is essential for long-term success.
The American Club's fixed premium facility, Eagle Ocean Marine, continues to benefit from its historical net loss ratio of 80%. This low loss ratio suggests that the facility is operating efficiently and effectively, with a strong track record of managing risk. The fact that the facility year and current year are tracking better than all preceding years is a testament to the Club's ability to refine its portfolio management strategies.
The Club's approach to premium rate changes and adjustments to underlying conditions of cover has been successful in achieving its goals for the 2026 renewal. By making these adjustments, the Club has been able to balance risk with revenue, resulting in a positive outcome for members. This approach is likely to be seen as a model for other P&I clubs looking to navigate the complexities of policy renewal.
The 97% retention rate at the renewal is also noteworthy, reflecting Members' satisfaction, loyalty and trust. A high retention rate is essential for long-term success, as it indicates that members are confident in the Club's ability to manage risk and provide adequate coverage. The fact that this rate is the highest in several years suggests that the Club has made significant strides in improving its service and reputation.
Direct claims exposure is tracking within budget, with pool contributions emerging at lower levels than in 2024. This is a positive development for the Club, as it indicates that members are managing their risk effectively and contributing to the collective pool. The fact that investment performance has been positive, with an overall return of 8.7%, further suggests that the Club's financial position is strong.
With these developments, the American Club embarks on the 2026 policy year in a solid position. The projected total premium income for all classes of business, including Eagle Ocean Marine, stands at $145 million. This is a significant achievement and demonstrates the Club's ability to navigate the complexities of P&I policy renewal.
The positive progress reported by the American Club is likely to have a ripple effect on the wider P&I market. As one of the leading clubs in the industry, the Club's success will serve as a benchmark for others looking to improve their own policy renewals. The fact that the Club has achieved its goals through a combination of premium rate changes and portfolio management refinement suggests that it is well-positioned to continue its positive track.
In conclusion, the American Club's 2026 P&I renewal has been marked by significant progress and positive developments. As the industry looks to the future, it will be interesting to see how other clubs respond to these developments and whether they can replicate the Club's success.
