Underwriting Commentary

Stability

The financial statements in this year’s publication show a 2% top line growth in the size of ITIC together with a rise in operating surplus of US$4.45m. In what are described, by many insurers, as some of the most difficult trading conditions ever, these are strong figures. ITIC’s free reserves over the same period have also grown by just over 20% to US$112m. This reserve development encouraged the Board of Directors of ITIC to increase the 2014 policy year continuity credit, or dividend, for renewing members to either 7.5% or 12.5%, which is not a bad return on every member of ITIC’s investment in their insurance company.

New premium income

One of the reasons for ITIC’s most recent success has been our ability to attract new business. Insurance brokers across the wider marine and professional risks communities continue to promote ITIC as the specialist insurer of marine and transport industry professionals. As the survey in last year’s publication showed, our philosophy of always providing a named individual, or account executive, for you to speak to and correspond with is, we hope, a breath of fresh air to our customers. You can even come and see us for a coffee at Thomas Miller’s offices in 90 Fenchurch Street in the City of London. Please do so this year if you haven’t done so already! You would be most welcome.

Diversification

Every business needs a spread of income from more than one customer group and insurance companies are no different. Over the last decade or so ITIC has steadily expanded its capability. Today a typical ITIC customer could be a ship manager, naval architect, subsea hydrographic surveyor, aviation consultant, or all of these. This growing range of wider marine and transport professional risks provides a healthy balance to our portfolio and introduces us to insurance brokers in both the marine and professional risks sectors.

Loyalty

We are quite rightly proud of the 95% of ITIC members who choose to renew their insurance with us every year, as well as the fact that 65% of ITIC members choose to renew on a two year basis. Thank you to all ITIC members, and their insurance brokers, for your ongoing support of ITIC in 2014.