Protection and Indemnity (P&I) Clubs: Financial Review 2020

We are pleased to launch our Protection and Indemnity Clubs: Financial Review 2020. This report, provides extensive financial analysis of the International Group (IG) of P&I clubs. 

For the 2019/20 financial year, the P&I clubs recorded an average combined ratio — the ratio of incurred claims and expenses to earned premiums — of 114%, ranging between 99% and 143%.

On the face of it, there is a strong argument that P&I claims are significantly outrunning premiums. 

Will this lead to clubs raising premiums for ship-owners? We examine the factors driving P&I club underwriting models, including claims and premium trends and the significance of surplus capital in a unique insurance market. We put the case against the need for general P&I premium increases.

The report covers:

  • The recent performance of the clubs and the outlook for renewal negotiations.
  • A consolidated analysis of the clubs by key performance indicators.
  • Individual profiles of each club, with extensive financial analysis. 
  • A review on Solvency II reporting.

Key highlights:


Net income to the P&I clubs has been remarkably stable.


Net incurred claims have risen in each of the past four financial years, but not to the peak over this 12-year period and net incurred claims in 2019 are only slightly above the average. Meanwhile, club surplus funds have more than doubled.


Larger vessels attract lower rates per gross tonnage (GT), an approach to underwriting that seems to be borne out in a trend towards lower claims costs per GT.