NorthStandard has announced a 5% increase in P&I premiums for the marine insurance year, starting 20 February 2026, to reflect ongoing market unpredictability and risk.
The marine insurer projects a rise in premium income for 2025-26, as well as better returns on investments, higher reserves, and continued success for its diversification strategy. However, it believes a modest increase for 2026-27 is “prudent” in the current risk environment.
Based on its position eight months into the insurance year, NorthStandard projects premium income of $930m for 2025-26 against $886m in the previous year, and free reserves of $900m ($800m).
Meanwhile, investment returns are currently predicted to rise to over 6%, up from 5.9% in 2024-25.
Based on favourable conditions in its retained claims, NorthStandard projects a year-end combined ratio of 104%, which is 10% lower than 2024-25. However, geopolitical-driven disruption to major trade lanes continues, with inevitable consequences for routing decisions and contract terms, while scrapping rates remain subdued. Ship fires and other complex claims also bring unpredictability.
The Club maintains its S&P Global ‘A’ rating, with capital strength remaining ‘Stable AAA.’
NorthStandard managing director, Paul Jennings, confirmed the 5% increase in P&I premiums to ensure the Club’s robust underwriting position.
“We will continue to develop with ambition, while maintaining the financial discipline and long-term thinking to underpin our enduring success,” commented Jennings. “The current risk scenario is not a perfect storm by any means, and the year-to-date is encouraging, but large claims remain inherently unpredictable. Our modest premium increase requirements this year, are further vindication of our successful merger in 2023. In the interests of protecting our members, we meet uncertainty with prudence to ensure that our underwriting position remains robust.”
From his side, Jeremy Grose, managing director of NorthStandard, added: “This year’s cautious outlook provides further evidence of the logic behind our unfolding strategy of diversification. Our specialty lines are delivering positive performance across the board. Their average combined ratio of under 90% over a five-year period is strong proof of their contribution to our continuing financial resilience.”
