Best’s News & Research Service - February 18, 2025 05:00 PM (EST)
Best’s Market Segment Report: P&I Clubs Record High Free Reserves Despite Challenges on Technical Performance
- February 18, 2025 05:00 PM (EST)
//BestWire// - After two years of relatively benign pool claims experience, an uptick in pool claims in 2024/25 will partially offset expected high investment returns for Protection and Indemnity (P&I) clubs, according to a new report from AM Best.
In its new Best’s Market Segment Report, “P&I Clubs: Record High Free Reserves Despite Challenges on Technical Performance” AM Best notes that high investment returns boosted free reserves to record high levels in 2023/24 and are expected to remain sizeable in 2024/25. However, the uptick in pool claims means that combined technical performance is expected to deteriorate for the 2024/25 year.
The report also notes that further rate adjustments are expected at subsequent renewals to maintain underwriting discipline. AM Best considers the continuation of general increases to be necessary to maintain price adequacy in view of the expected deterioration in underwriting results in 2024/25 due to the notable increase in large claims frequency and severity.
To access a complimentary copy of this market segment report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=351384.
AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.