DGS Marine, a global P&I (protection and indemnity) management provider, and exclusive manager for the British European and Overseas (BE&O) P&I facility, has announced a 15% premium growth following the completion of P&I renewals on February 20th, 2015.
This increase, which brings DGS Marine’s premium income to $36 million, marks growth and development in the fixed premium P&I market as ship owners and operators look to reduce their operational expenditure and secure greater control over the costs of P&I cover.
The number of vessels entered into the BE&O P&I facility increased by nearly 25% from 1,500 to 1,950 vessels. The total tonnage of these vessels rose from 3.8 million tonnes to 4.8 million tonnes. DGS Marine also reported an increase in free reserves to $119 million and a 4% reduction in reported claims.
A significant number of owners have moved their vessels from the International Group of P&I Clubs to the BE&O P&I facility managed by DGS Marine in this latest round of P&I renewals. The diverse fleet covered by the BE&O P&I facility comprises 40% tankers, 24% bulkers and 23% general cargo, as well as a substantial number of container vessels, tugs and barges.
“In today’s shipping markets, despite falling oil prices, cost control and financial transparency are still more important than ever for ship owners," said David Skinner, BE&O and P&I Group Managing Director.
DGS Marine also believes that many more owners are attracted by the lower costs available from fixed premium providers, but are prevented from moving from their mutual P&I providers by prohibitively high release calls.