The Club announces proposed 8 per cent Premium Return for 2023
Norwegian Hull Club has announced a proposed 8 % return on premium (USD 14.1 million) in its Annual Report 2023 published today, March 22, 2024. This proposal will be presented to the Committee and finally decided at the Annual General Meeting, to be held on June 11, 2024.
As a mutual marine insurance provider, Norwegian Hull Club delivers various benefits to its members, including return of premium when the capital position and operating results allow. This is a recognition of members’ long-term commitment to The Club and their belief in the service concept as a driver for sustainability and saved costs.
'Eventful and successful'
In his CEO Review of 2023, Norwegian Hull Club’s Hans Christian Seim describes the year as 'eventful and successful', pointing to the establishment of a third wholly owned subsidiary - offshore renewables insurance specialist NIORD - plus an ambitious core-system development project for software subsidiary Instech Solutions.
Seim emphasises the challenges faced globally as a result from war and how such instability negatively affects ordinary people, globalisation and 'a sense of fellowship across borders'. He also points to resulting industry-specific challenges, highlighting 'access to markets, spare parts and repair facilities'.
'Positive changes'
After acknowledging that increased compliance and risk-management necessitated by such global instability or, indeed, the drive towards sustainability can 'sometimes lead to positive changes and opportunities', Seim highlights how The Club's service concept and knowledge-sharing approach continue to nurture long-term relationships with its members and clients. He also restates the organisation's commitment to finding new solutions and its commitment to sharing best practices.
"Pleased and proud"
Concluding his summary of the year, Seim says: "Being a mutual insurance company, the year-end always comes with the anticipation of honouring long-term commitment and loyalty financially. Therefore, both I and The Club as a whole are pleased and proud to announce a Premium Return of
8 % to our members for the calendar year 2023. Thank you all for your continued trust in us!"
Return Premium - practical information
In order to be able to proceed with the payment of return premiums as quickly and efficiently as possible following the Annual General Meeting, The Club requires endorsements and closing documents on all 2023 business (at risk in 2023). We therefore encourage clients and brokers to provide such outstanding documentation as soon as possible.
An e-mail with all the underlying details will be sent to brokers and members in June 2024 and Norwegian Hull Club will then start paying out the return premium as soon as accounts / any outstanding amounts have been reconciled. If you have any questions regarding the return premium, contact your designated underwriter or check the Q&A section listed below.
Q&A
Q: Which article in the Articles of Association is the basis for decision on and calculation of return premium?
A: Return premium is regulated by § 3-2 of the Articles of Association, stating:
“If the total premiums and other income of The Club are found to be in excess of that required to cover the claims and costs of the calendar year, The Club may decide that the surplus, wholly or in part, shall be repaid to the members in the calendar year in question by way of a pro rata discount to be stipulated in proportion to the net advance premiums for that calendar year. It is not permissible to declare higher return premium than proposed or accepted by the Board of Directors. Repayment to Joint Members is to be sent to the member named first in the insurance agreement.”
Q: For which period is the return premium earned?
A: Return premium is based on mutual premium earned by Norwegian Hull Club during the 2023 calendar year, see § 3-2 referred to under the first question. This premium can also relate to previous underwriting years which were at risk in 2023.
Q: To whom shall return premium be paid?
A: Return premium shall be paid to the member, See § 3-2. Payment to the member will be made through their broker.
Q: Will return premium impact commission to brokers?
A: No.
Q: Will a former member who was member for a part of the calendar year be entitled to return premium?
A: Yes, see § 3-2.
Q: Is estimated but not reported premium on war covers included in the basis for return premium?
A: No, only calls declared, and premium calculated thereon form the basis for return premium.
Q: When will repayment of premium be made?
A: After the Annual General Meeting’s approval, to be held on June 11, 2024.
Dated: 22 March 2024