The Club announces proposed 10 per cent premium return for 2024
Norwegian Hull Club announced a 10% premium return (USD 18.9 million) in its 2024 Annual Report. The proposal will be reviewed by the Committee and decided at the Annual General Meeting on June 10, 2025.
Historical result in an uneventful year
Norwegian Hull Club’s CEO, Hans Christian Seim, describes 2024 as uneventful, highlighting two notable milestones in his CEO Review. The Club achieved significant profits from insurance and investments, driven by the absence of major claims and exceptionally low claims cost, resulting in its strongest financial outcome to date. Seim also notes that the Norwegian Hull Club Group reached a historical milestone by exceeding 300 employees across its four companies.
‘Developing our service concept to stay relevant to our clients’
Seim highlights global challenges influenced by geopolitical dynamics and the shared responsibility for safe industry decarbonization. He underscores Norwegian Hull Club’s commitment to being an enabler for global trade through de-risking the transition to the technologies and regulations of tomorrow, noting the rise in vessels using alternative fuels and propulsion in The Club's portfolio.
Reflecting on the entrance of a softer marine and energy insurance market cycle, Seim states: ‘For Norwegian Hull Club, maintaining strong relationships and interactions with our clients and brokers remains our primary focus. The strategy remains steadfast: honouring the long-term relationships by always developing our service concept to stay relevant to our clients while we navigate complex waters together. As we navigate a softer market cycle, and mindful that our core product, hull and machinery, is at break-even,our members continue to benefit from The Club’s diversification journey contributing strongly to the overall results’.
‘The difference is the people – all the different people’
Recognising his colleagues as a main driver for the success of The Norwegian Hull Club Group and its four independent brands, Seim concludes: ‘As our growing organisation evolves and Norwegian Hull Club is gradually developing into its corporate structure, we keep acknowledging that the difference is not only the people – but all the different people, and how we need all kinds to succeed within the various fields within the Norwegian Hull Club group’.
Read more about Seim’s reflections, as well as financial and non-financial key figures in the Norwegian Hull Club Annual Report 2024.
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 for all business at risk during the 2024 calendar year. We therefore encourage clients and brokers to provide such outstanding documentation as soon as possible.
An e-mail with all the underlying details will follow in June 2025 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 2024 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 2024.
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 10, 2025.
Dated: 13 March 2025