The Club announces 12 per cent Premium Return for second consecutive year
Norwegian Hull Club has announced a proposed 12 % return on premium (USD 16.6 million) in its Annual Report 2021, which was published today, 29 March 2022. This proposal will be presented to the Committee and finally decided by the Annual General Meeting, on 14 June 2022.
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 the members’ long-term commitment to The Club and of their belief in the service concept as a driver for sustainability and saved costs.
Another unusual year
In his CEO Review, Norwegian Hull Club CEO Hans Christian Seim states that 2021 was another unusual year, with the pandemic affecting the way business was conducted. With Russia's invasion of the Ukraine now commanding the world's attention in 2022, Seim shares his concerns and contemplates on how the situation affects The Club in the short-term, as well as reflecting on the possible longer-term consequences for both The Club and the industry.
'Optimistic'
Cooperation and advancement within and across industries towards sustainability, however, 'make us optimistic', he says, highlighting Norwegian Hull Club’s role in the Poseidon Principles for Marine Insurance, and its commitment to measure the climate impact of its hull and machinery portfolio annually.
Seim also stresses the importance of employee diversity, including the ongoing high focus on closing the gender gap at Norwegian Hull Club. In order to deliver the best possible service, a wealth of perspectives harvested from a broad range of experience, education and background are needed.
'Above expectations'
Although there was an increase in claims frequency in 2021, Seim says that there was an absence of major claims and that the technical result is 'far above expectations'. The Board of Directors has proposed a premium return of 12 % as a result to Norwegian Club's members.
In conclusion, he shares The Club's enthusiasm for the increase in physical meetings and market activities so far in 2022, indicating that shared 'curious cooperation' has the potential to protect both people and the planet.
Practical information
In order for us 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 2021 business (at risk in 2021). 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 2022 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 2021 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 2021.
Q: To whom shall return premium be paid?
A: Return premium shall be paid to the member, See § 3-2. In case of Joint Members, return premium is paid to the members named first.
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: Shortly after the Annual General Meeting, to be held on 14 June 2022.
Dated: 29 March 2022