The foundation of good internal governance is a strong risk-management framework, combined with delegations of authority to ensure the effective management and reporting of risks in the organisation.
Norwegian Hull Club has a comprehensive risk management and internal control framework to systematically identify, assess, manage and communicate risks throughout the organisation.
The Board of Directors defines The Club’s strategy and risk profile, including capital targets, risk tolerance and risk appetite.
S&P Global Ratings, the corporate credit ratings provider, reconfirmed Norwegian Hull Club’s ‘A rating with a stable outlook’ in its latest report, issued on July 9th 2021.
Norwegian Hull Club’s solid capital adequacy is highlighted as a key factor in the report, confirming The Club’s strong financial position. Further, Norwegian Hull Club’s established position in the marine hull and loss of hire market is emphasised by the rating agency.
‘Expect The Club to maintain its strong reputation’
S&P demonstrates high expectations with regards to The Club’s further growth and profitability and explains: ‘The stable outlook signifies that NHC has differentiated its operating performance from that of its peers through the strength of its brand and its business mix. We anticipate that The Club will maintain its capital adequacy above the confidence level we expect of a 'AAA' rated entity, according to our risk-based model. We also expect The Club to maintain its strong reputation in the market and to expand its premium base conservatively over the next three years’.
The report is available to read here.