North and Standard Club members authorize the creation of marine insurance

Published May 28, 2022 00:15 by

The Maritime Executive

The merger of North and Standard Club is approved after separate meetings of members gave strong support to plans to create a market-leading global marine insurer and one of the largest providers of mutual insurance coverage in the maritime industry.

Both clubs held extraordinary general meetings on May 27 to approve the proposal to merge the two organizations into a single mutual.

This gives the green light to charter NorthStandard as a unified club in time for February 20, 2023, next year’s renewal date. The merger is still subject to the approval of all relevant regulatory authorities.

The merger will create one of the largest mutual insurance providers in the marine industry with approximately $750 million in consolidated annual premiums. With 300 years of shared P&I heritage, NorthStandard will also bring together some of the most respected teams of experts in maritime risk management. The new organization will be led jointly by Standard Club CEO Jeremy Grose and North CEO Paul Jennings.

“This is an excellent result and a great moment for our industry,” said Grose. “NorthStandard will be a major new force in marine insurance, providing members with the resilience they need from their P&I partners to meet the challenges and competitive landscape of a changing marine world. We are delighted that our proposal has received such strong support from members of both clubs.”

“In order for the merger to proceed, it was critical that we secured their recognition of the positive outcomes of the proposal’s continued quality of service, as well as the opportunities created by diversified product lines, economies of scale and global reach.” NorthStandard will bring together two unique advocates of reciprocity who work within the International Group of P&I Clubs, whose complementary cultures, ambitions and approaches would work together to create value for all members, Grose said.

“North members expressed their overwhelming support for the merger, based on the tangible benefits for shipowners that the consolidation will bring,” commented Jennings. “Members welcomed the proposal, saying it would increase stability and competition in the P&I sector, as well as encourage innovation and drive further product diversification.

“A larger organization will also attract and retain even more of the best talent to ensure NorthStandard provides members with the highest level of service and support,” concluded Jennings.

The products and services described in this press release are not endorsed by The Maritime Executive.

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