The International Group of Protection and Indemnity Clubs (IG) is expected to increase rates by an average of close to 5% in 2025, similar to the increase during the renewals in 2024, according to S&P Global Ratings.
Pool claims have re-emerged this year, resulting in an expected average combined ratio of 100%-105% for the financial year 2025 (ending 20 February), compared with 95% in financial years 2024 and 2023.
"The property and indemnity sector remains well capitalised," S&P Global Ratings credit analyst Sachin Bhojani said. "Overall, capital levels have gradually recovered, supported by a strong underwriting performance over the past two years and robust investment returns."
Clubs' significant capital levels, coupled with subdued freight rates in the shipping sector, could complicate negotiations when policies are due for renewal since they make it harder to justify even modest rate increases.