The merger of shipping insurers North P&I and Standard Club will create new opportunities in Asia and the US, the mutual’s Newcastle-based boss has said.
Speaking to BusinessLive following completion of the move, which creates one of the world’s largest maritime insurers, NorthStandard managing director Paul Jennings said the coming together of the two established insurers would also bring opportunities in the growing renewable energy market. Mr Jennings, who was managing director Newcastle Quayside-based North and now, along with former Standard Club boss Jeremy Grose, leads the 700-strong firm that insures one in five of the world’s ships, said the two mutuals brought complementary geographic strength and products across core ocean-going insurance and “diversified” business.
He said: “Standard are bringing with them an offshore and renewables section which we really haven’t had at North at all, and they’re also coming in with something called ‘strike and delay’ - which offers protection against delays caused by shore-side strikes - which is another line we haven’t done at North before.
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“Going the other way, from North we’re bringing North Hull, Sunderland Marine fishing boats stuff and we’re also combining our two books of small ships that we insure outside of the international group system. It’s very complementary the way its come together.
“Our ambition is to grow that diversified side of the business significantly. We think there’s more headroom to grow that. We’ve got a 20% world market share on the blue water mutual P&I and whilst we’re not suggesting we’re not ambitious, we’re realistic enough to know that when you get to that size there comes a certain headroom for growth whereas with the diversified side there is still room to grow.”
NorthStandard, which now boasts a premium income of about £662m (US$800m), will operate dual headquarters in London, where around 200 people are employed, and in Newcastle where around 300 people are based. Mr Jennings said the firm particularly wants to encourage London-based staff, formerly of Standard, to visit the Newcastle Quayside offices which are set for refurbishment this year to facilitate more flexible working.
A number of other senior roles in the newly merger mutual will be based out of the Newcastle office, including chief strategy officer Ed Davies, chief underwriting officer Thya Kathiravel, and group general counsel Chris Owen.
Meanwhile Mr Jennings said credit ratings agency Standard & Poor’s awarding of NorthStandard an enhanced ‘A’ rating was evidence the move had been a thought out and well executed merger and took the business “up a notch” from some competitors. The global shipping market has seen challenges and opportunities on the back of the war in Ukraine, sanctions and the movement of oil out of Russia, and some of the container ship demand experienced throughout Covid has now abated.
Prior to the Ukraine conflict North P&I had insured the Russian state shipping fleet, a significant and longstanding client before sanctions stopped the agreement in March last year.
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