NorthStandard has informed its members of a 5% increase in Protection and Indemnity (P&I) insurance premiums for the policy year beginning February 20, 2026, in response to continued market unpredictability and risk.
The global marine insurer projects an increase in premium income for 2025-2026, as well as better investment returns, higher reserves, and sustained success in its diversification strategy.
Nevertheless, it considers a moderate increase for 2026-27 a prudent measure in the current risk environment.
Based on its position eight months into the policy year, NorthStandard estimates premium income of $930 million for 2025-2026, compared to $886 million the previous year, and free reserves of $900 million ($800 million).
Investment returns are forecast to exceed 6%, up from 5.9% in 2024-25. The Club maintains its S&P Global A rating, with a Stable AAA capital strength.
Its improved capital position has also allowed it to allocate more funds to growth assets within its investment portfolio.
Although the claims environment is relatively benign compared to last year’s high number of International Group (IG) pool referrals, the Club believes caution remains essential.
“NorthStandard’s investments continue to perform well, which is positive for our balance sheet and necessary to maintain our strong underwriting position,” commented Cesare d’Amico, Chairman of NorthStandard.
“However, a better claims scenario this year must be considered in the context of inflation and volatility. And although claims in the IG are less numerous, they remain very large, and the pattern of costly claims persists,” he added.
Thanks to favorable conditions in its retained claims, NorthStandard projects a year-end combined ratio of 104%, 10% less than in 2024-2025.
Despite the above, geopolitical disruptions in major trade routes continue, affecting navigation decisions and contractual terms, while scrapping rates remain low. Ship fires and other complex claims also add unpredictability.
“This year’s cautious outlook reinforces the logic behind our developing diversification strategy,” commented Jeremy Grose, Chief Executive Officer of NorthStandard.
“Our specialized lines are showing positive performance across the board. Their five-year average combined ratio of below 90% demonstrates their contribution to our financial resilience,” he added.
Strategic initiatives this year include the launch of a new Maritime and Energy Liability portfolio, in response to feedback from members and brokers.
“Building on its strength in P&I Offshore and Renewables, this new line offers liability coverage beyond traditional P&I. The Club also launched a combined Hull & Machinery and P&I product, leveraging its expertise from Sunderland Marine and its capabilities in coastal and inland areas,” NorthStandard communicated.
We will continue to develop ambitiously, maintaining the financial discipline and long-term thinking that underpin our lasting success.
The current risk landscape is not a perfect storm, and the year so far is encouraging, but large claims remain inherently unpredictable,” commented Paul Jennings, managing director of NorthStandard.
“Our need for a moderate increase in premiums this year is further evidence of the success of our 2023 merger. For the benefit of our members, we face uncertainty with prudence to ensure our underwriting position remains strong,” he concluded.
