West’s 103.9% CoR for 24-25 FY impacted by elevated IG Pool claims

West of England P&I Club, an insurance provider to the global maritime and offshore industries, has delivered strong results for the 2024-25 financial year amid market challenges.

The firm’s combined ratio of 103.9% for the year was impacted by elevated International Group (IG) Pool claims, but despite this, West’s own claims experience remained within forecast and the Club’s three-year average combined ratio is 98.4%, the best it has been for eight years.

Despite a volatile investment landscape due to ongoing geopolitical and market volatility, West’s asset allocation strategy and capital strength has demonstrated resilience.

This resulted in the Club’s investment portfolio delivering a return of 5.6%, generating USD 44 million, representing its strongest investment result in five years.

The Club’s Free Reserve increased by 11% to USD 306.1 million and its Solvency Capital Ratio is estimated at 190%. Moreover, credit rating agency AM Best also reaffirmed West’s A- (Excellent) rating, a move that reflects their confidence in Club’s financial position.

The 2025 Policy Year’s gross premium is forecasted to reach close to USD 400 million, an increase from USD 347 million as of February 20, 2025.

This growth reflects high levels of Member retention and strong demand across West’s product range. Hull, Loss of Hire, Delay, Fixed, Chartering and Defence cover are expected to generate over USD 100 million of gross premium annually up from c. USD 80 million last year.

Tom Bowsher, West’s Group CEO, commented: “Despite a challenging Pool claims environment, our fundamentals remained strong. Our capital strength, disciplined underwriting, and investment performance enabled us to deliver a resilient result. We are confident in our strategy and continue to position West for the future.”

The Club further advanced its long-term focus on regional growth and product development with two milestones in the last year: the opening of an office in the UAE, and the acquisition of Nordic Marine Insurance.

With the opening of the UAE office, West became the first IG Club to open a hub in the region, strengthening the Club’s presence in a key global maritime hub.

Additionally, the acquisition strengthens West’s product offering, particularly in the Delay, Hull and Loss of Hire markets, and provides the Club with a permanent presence in Scandinavia through Nordic’s Sweden-based operations.

“West now provides a comprehensive suite of products to meet Members’ evolving needs, including West Hull, West War and Piracy Protection, which is further complimented by West’s acquisition of Nordic Marine Insurance, who have now entered the mainstream sectors of Hull & Machinery and Loss of Hire.” Bowsher added, “We remain focused on serving our Members with strength, innovation, and a long-term view.”

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West of England P&I Club, an insurance provider to the global maritime and offshore industries, has delivered strong results for the 2024-25 financial year amid market challenges. The firm’s combined ratio of 103.9% for the year was impacted by elevated International Group (IG) Pool claims, but despite this, West’s own claims experience remained within forecast…