The Club’s S&P rating maintained at ‘A/stable’
S&P Global Ratings, the corporate credit ratings provider, reconfirms Norwegian Hull Club’s ‘A rating with a stable outlook’ in its latest report, issued on July 9th.
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’.
Commenting on the latest rating, Chief Executive Officer Hans Christian Seim states: ‘We are proud to see S&P value our business model and the robust foundation it is built upon, where the service offering and disciplined, consistent underwriting over the years have brought us to a very strong position. In addition to acknowledging Norwegian Hull Club’s solid capital base, the rating recognises our dedicated focus on reducing negative impact to lives, health, environment and property and underpins our confidence in a service concept that our clients continue to rate to the highest level’.
‘Reducing accidents and associated pollution’
While focusing on The Club’s business and financial risk profile, S&P has also assessed other key elements in their report, such as Norwegian Hull Club’s performance on economic, social, and governance factors: ‘NHC functions as a genuine mutual with the aim of enabling members to trade globally with confidence and protecting seafarers against accident or injury. It is in The Club's interest to minimize environmental damage, and its loss-prevention program aims to reduce accidents and associated pollution’.
‘The focus on sustainability and conducting business in a way that withstands scrutiny has been rightfully put on the agenda in recent years. However, the dedication to protecting humans and the environment has been key to The Club’s contingency and claims handling for a long time’, Seim comments before he concludes: ‘We will not rest on our laurels. Together with clients, suppliers, and other business partners we will continue to explore and nurture initiatives that will help our clients on their committed journey towards zero emissions, to protect the vulnerability of both people and the ocean’.
The summary of S&P’s rating of The Club is available here.