After a first half-year characterized by major losses, even the largest P&I is forced to increase premiums. Nevertheless, capital is once again being distributed to members from the reserves.
Gard, the global market leader in P&I insurance, has announced a general increase in premiums of 5% as of February 20. The increase is slightly higher than in the previous year (+4%) and thus follows the emerging industry trend.
The range of general increases at P&I to date is +5% to +8% compared to +4% to +7.5% for the last renewal.
The increase is intended to ensure that premium income keeps pace with claims development, says Gard, explaining his decision. At the same time, the Norwegian club, which is also by far the market leader in P&I in Germany, is again offering a discount for members who renew their cover. As in the previous year, there is an “Owners’ General Discount” of 10% on the annual premium. Last time, the discount amounted to just under $50 million.
At first glance, the two measures appear to contradict each other. However, the increase in premium rates is much more significant because it represents a permanent price increase, whereas the “Owners’ General Discount” is only ever decided on a one-off basis. This is the seventeenth year in a row that the club has granted its members relief or paid out capital.
The insurer owes the fact that it is also in a position to do so in 2026 to the high investment income in the current year. Only thanks to interest, dividends and capital gains on investments amounting to USD 191 million was Gard able to report a surplus of USD 101 million in the first half of the year and increase its free reserves to USD 1.64 billion. Underwriting posted a deficit of $88 million with a combined ratio of 117%. According to the information provided, this was due to an increase in major claims. (MPH)
