2025/26 renewal arrangements and Member returns
TO: ALL MEMBERS
PREMIUM ADJUSTMENT FOR 2025/26 +5%
FULL FLEET CREDIT INCREASED FROM 2.5% TO 5%
CAPITAL DISTRIBUTION INCREASED FROM 3.5% TO 10%
GENERAL INCREASE +5%
The Club Directors met recently to consider the level of premium requirements for the 2025/26 policy year.
In this ever changing industry, claims continue to impact the Club and Members alike. Various geopolitical conflicts have given rise to a number of challenging issues, as have regulatory changes aimed at responding to the effects of climate change. Members are adapting to the requirements of EU/ETS and FuelEU, although disputes relating to these may only become readily apparent in the years ahead.
New technologies, ship design and fuel types only add to the challenges ahead.
The Club has also seen an increase in average UK law firm rates as highlighted in the first graph below.
Although the Club is trying to move the approach away from hourly rates to different types of arrangements which provide greater certainty for Members and the Club alike, there is still some way to go.
With the above factors in mind the Club Directors considered that a marginal 5% premium adjustment for the 2025/26 policy year was necessary, to reflect these challenges and ensure premium levels keep abreast with claims and inflation. This increase is of course subject to individual Member Records.
FULL FLEET CREDIT AT 5%
The Club Directors also agreed that the existing full fleet credit (which has been in operation since 2015) should be increased from 2.5% to 5%.
This credit applies to any new or existing Member at the commencement of the 2025 policy year.
The Club has seen an increasing proportion of new and existing Members who over recent years, have recognised the benefit of entering their full fleet and this increase in the level of this credit is aimed at recognising this.
CAPITAL DISTRIBUTION AT 10%
Over the past 10 years the Club has distributed capital to its Members which evidences the continued capital strength of the Club.
For the 2025 policy year the Club Directors agreed that the capital distribution should be increased from 3.5% to 10%. This distribution applies to any existing Member of the Club.
This latest distribution, alongside any full fleet credit, means that since inception of this programme, in excess of $17 million has been returned to Members as shown in the second graph below.
The Club Directors recognise that the strength of the Club is down to you, its Members and the Board thanks all Members for your continued support.
Membership now stands in excess of 4,000 owned and chartered entries and in the order of 215 million GT.
Yours faithfully
THOMAS MILLER DEFENCE LTD.
Managers
