Two parties have entered into talks to create a new global marine insurance force
North P&I and Standard Club have entered formal discussions for a proposed merger to create one of the largest providers of mutual cover in the maritime industries.
“Standard Club and North now have the opportunity to create one of the world’s leading and most influential P&I clubs, founded on exceptional service and innovation, a broader diversified product range, scale economies and global reach,“ said Jeremy Grose, CEO, Standard Club.
“The merged club would maintain an unwavering commitment both to member service and to the International Group system and offer marine insurance products, services and solutions relevant to the broadest range of shipowners worldwide.”
With 300 years of shared P&I heritage, the combined mutual insurer would provide cover for vessels equivalent to 400M GT.
James Tyrrell, chairman at North P&I said that combining forces would establish a global marine insurer positioned to thrive in the face of current and emerging challenges and opportunities posed by digitalisation, recruitment, regulation and sustainability.
“With stronger financial resilience, the newly created club would be well-positioned to thrive in all conditions,” he said.
“In a changing and sometimes volatile maritime sector, North’s Board has long recognised the potential value arising from considered and balanced consolidation in P&I. Choosing the right partner is the first critical step towards success.”
The announcement follows the approval of the proposal by the boards of both clubs and notification to principal regulatory authorities of their intention to merge. A joint North and Standard Club working group has been appointed to evaluate how a combined entity would maximise value for members. The working group is following a structured methodology, allowing the case for a merger to be objectively explored and assessed by both clubs.
The proposed merger remains subject to the approval of the full mutual membership of both clubs and of all the appropriate regulatory authorities. Member voting procedures are anticipated to conclude by the end of May. If approved by the membership, the formal merger of both clubs is expected to complete by 20 February 2023.