Annual Report & Accounts

Dear members

I am delighted to report that, in its 32nd financial year, ITIC has again produced a strong surplus.

ITIC and ITIC Europe (together "ITIC"), combined with its mutual reinsurer Transport Intermediaries Mutual Insurance Association Limited (“TIMIA”), returned a US$30m surplus for the year to 31st May 2024 (“2023/24”) after paying US$15.6m in continuity credit. This follows the US$14.5m credit paid in the previous year.

The continuity credit paid to renewing members, now to be distributed for the 30th consecutive year, effectively reduces the cost of your insurance. Your board, at its meeting in March 2024, reviewed the level of ITIC’s free reserves which are strong and in excess of the amount needed for ITIC’s solvency requirements, and determined that they would pay an enhanced continuity credit for all renewals in the 2024/25 year.

• For one year policies, a credit of 20% of the premium.
• For two year policies, a credit of 30% for year one and at least 20% for year two.
• Those in the second year of a policy, begun in 2023/24, will receive a credit of 30%, which was substantially more than the original 15% promised by the board at its meeting in March 2023.

Your board considers the payment of continuity credits to be an extremely important benefit of being covered by a mutual insurer. Since the continuity credit payments began, I am pleased to report that more than US$206m has been returned to you, the members.

The risk for all claims up to US$1.0m continues to be retained by ITIC, as well as an additional two retentions in excess of the primary US$1.0m level and one retention excess of US$2.0m. We are also comfortable that the reinsurance in place reduces the risks of large claims to an acceptable level at a reasonable cost.

ITIC’s gross earned premium increased in 2023/24 by 5% and we continue to retain approximately 97% of members at renewal each year; an indication of how highly our members view the quality of service and cover given.

I am pleased to advise that the combined free reserves of ITIC and TIMIA, before payment of this continuity credit, are US$260m as at 31st May 2024.

Owing to the significant strength of our reserves, and in common with past years, the board has again also closed the preceding policy year; meaning that all years to the end of 2022/2023 are now closed. ITIC has NEVER requested additional premium for any policy year.

The insurance, claims, contractual advice and practical help that we provide to members, advisers, brokers and introducers around the world, through our expert and highly experienced team, continues to set us apart.

In February 2024, the board were excited to open a new wholly owned subsidiary of ITIC in Cyprus, ITIC Europe, through which we now directly service our EEA members. Members and brokers will continue to enjoy the same high level of service to which they have become accustomed via the enhanced team based in our Limassol office. The boards of ITIC, ITIC Europe and TIMIA (the parallel mutual reinsurer of both ITIC and ITIC Europe) meet regularly each year, and are particularly looking forward to our next board meeting in September 2024, which will be in Cyprus and this gathering will allow all boards to meet with local members and brokers at a reception to celebrate the establishment of ITIC Europe.

I am also pleased to see ITIC’s continued growth in the aviation professional indemnity sector. ITIC provides cover for companies whose services include aircraft lease and operational management, continuous airworthiness management, charter broking, design and surveying / inspection services and regulatory authorities.

The publication of the new BIMCO SHIPMAN agreement has been welcomed by the ship management industry and ITIC was privileged to be involved with its drafting. Subsequently, we have hosted a number of related thought leadership events around the world and a webinar with other members of the BIMCO drafting committee.

ITIC prides itself on its thought leadership events, which in the last year have covered subject areas including the EU Emissions Trading Scheme, naval architecture and various other risk management focussed presentations around the world. Many of these events are also available as webinars on the ITIC website.

ITIC reports fully to Solvency II standards and is regulated by the Prudential Regulation Authority and the Financial Conduct Authority. Details of ITIC’s solvency position can be found in the Solvency and Financial Condition Report, which is available on the ITIC website: https://www.itic-insure.com/about-itic/solvency-ii-reporting/

ITIC is committed to consistently providing competitively priced professional indemnity insurance (and related insurance cover) with valuable, high quality loss prevention advice to businesses servicing the marine, aviation, and general transportation industry through a mutual insurance company supported by at least “A-” rated security from its external reinsurers. Our focus will firmly continue to be on maintaining strong reserves and the provision of high quality service and risk management advice by our highly competent team.

As we look forward to 2025, we approach a key milestone in ITIC’s history. ITIC traces its origins back to the Chartered Shipbrokers Protection Association, first formed as an unincorporated association in December 1925. While the ITIC of today is different in many ways, its underlying purpose remains unchanged and it is noteworthy that some of its founding members remain members of ITIC 100 years later. To mark this occasion, the board and its managers will be hosting a celebration, in London, on 25th September 2025 – so, please make a note in your diaries and further details will follow in the near future.

Finally, I would like to thank the boards of ITIC, ITIC Europe and TIMIA, our managers Thomas Miller, our amazing and truly dedicated team who have again worked so hard to deliver an outstanding service, the brokers who we work with for their support and you our members who place trust in us as your dedicated specialist insurer for professional indemnity insurance.

The accounts and financial highlights for the 2023/24 year are available on the website (www.itic-insure.com).