For the first time in its history, Members attending the American Club’s Annual Meeting in New York yesterday did so remotely, in a virtual format made necessary by the COVID-19 pandemic. Despite the unusual circumstances, Members heard that the Club had made solid progress across all business lines over the previous twelve months, with 2020 having also started on a positive note.
While the shipping and insurance sectors had continued to experience headwinds in 2019, the American Club had nonetheless seen a modest growth in tonnage, although income had remained flat. Key highlights of American Club’s annual e-meeting include:
- Eagle Ocean Marine enjoys steady expansion with continuing profitability
- American Hellenic Hull reports increasing income and profits, buoyed by higher pricing
- American Club investments generate a 10.6% in 2019, best in a decade
- Modest decline in tonnage at 2020 renewal offset by 10% rise in premium per ton
- Members’ risk profile improves again for 2020, encouraging positive claims outlook
- Attritional losses stable in 2019, but incidence of larger claims increases
- 2019 Pool claims develop at elevated levels similar to those of 2018
- 2017 policy year closed without further call, release call margins for open years maintained
- 2019 year-end GAAP free reserves grow by 20%, statutory surplus by 18%
- As COVID-19 pandemic grips the world, IT and other capabilities mobilized to secure unimpaired service to all stakeholders
- Early impact of COVID-19 muted, but longer-term market consequences uncertain
What’s more, the annual meeting elected Mr. Weipeng Chen of CCCC International Shipping Corp., Mr. Emmanuel Michelakakis of Global Maritime Group, Inc., Mr. Leon Patitsas of Atlas Maritime, Ltd. and Mr. Joe Hughes of the Club’s Managers as new Directors. The Annual Meeting of the Directors re-elected Mr. George D. Gourdomichalis and Mr. Robert D. Bondurant as Chairman and Deputy Chairman of the Board respectively After 20 years of service, Joe Hughes retired as Club Secretary; Ms. Dorothea Ioannou elected by Directors to that position as his successor.
Commenting on the current challenges amid the pandemic, Mr Joe Hughes shared an optimistic message during the virtual meeting :
“The COVID-19 pandemic over recent months has generated an unprecedented mobilization of management resources, geared to entirely new ways of working, to secure unimpaired service to our stakeholders. Despite the exigencies of the present, my colleagues and I look forward with optimism to the many opportunities for future growth and development which will gain further momentum when normal conditions return.”
In his turn, Mr. Gourdomichalis, the Club’s Chairman, added:
“The challenges of the COVID-19 pandemic have caused the Club to adopt new and agile responses to the needs of its Members. We have weathered the storm with some success, I believe, and are well placed to exploit the post-pandemic insurance landscape of the future
