Press Release: The Strike Club and The Standard Club announce plans to combine
The Boards of marine mutual insurers, The Strike Club and The Standard Club, have announced plans for The Strike Club to join The Standard Club group. On approval, the transaction will provide members of The Strike Club with the stability and A-rated financial security of being part of a larger mutual insurer with over US$460 million free reserves. Members of The Standard Club will benefit from access to Marine Delay Insurance.
The Strike Club, is the market-leading mutual marine delay insurer and The Standard Club is the world’s fourth largest P&I club. Under the proposals, The Strike Club will continue as a member-controlled, dedicated mutual delay insurer, operating as a class of The Standard Club. It will be supervised by the current Strike Club Board, which will become a Strike committee of The Standard Club.
The Strike class will continue to offer Marine Delay Insurance which covers members for the daily operating costs of ships held up by strikes, port closures, collisions, breakdowns and other unexpected delays.
Marine Delay Insurance is highly valued by members of The Strike Club and demand for the cover is growing. The club has around 150 members and has secured over 40 new orders for mutual delay insurance in the past three years. Mutual premium has risen 9% since 2015.
The move also benefits members of The Standard Club. They will be able to access Marine Delay Insurance, further extending the club’s strategy of providing a wide range of covers to its members. It diversifies the club’s underwriting portfolio and risk profile, and further increases the club’s free reserves.
Both clubs will benefit from the opportunity for synergies, greater efficiencies and cost savings in governance, management, underwriting and reinsurance.
Alain Le Guillard, President & Chairman, The Strike Club, said:
“Marine delay insurance provides valuable protection to ship owners and operators protecting them from delays outside their control. At a time when the shipping market is facing difficult market conditions and financial pressures, our cover can make all the difference between profit and loss on voyages for operators.
Joining The Standard Club is an excellent move for the club. It will provide our members with long-term financial stability and S&P A-rated cover, while preserving the independence of operation, identity and other valuable mutual characteristics of The Strike Club.”
Cesare D’Amico, Chairman, The Standard Club said:
“This transaction is a win-win for members of both clubs. It increases our membership and enables us to offer valuable additional protection to members of The Standard Club. It extends our strategy of offering a wide range of insurance covers to our members and diversifying our sources of revenue. The Standard Club will also benefit from increased reserves from The Strike Club. I will look forward to welcoming the members of The Strike Club to The Standard Club.”
The Strike Club and The Standard Club are managed by companies within the Charles Taylor group. The transaction has been recommended by the boards of both clubs to their membership. It is subject to approval by members of both clubs and regulatory approval.