Eagle Ocean Marine (EOM), the American Club’s fixed premium P & I and FD & D facility, recently completed another year of steady growth and solid profitability. It has also renewed its reinsurance program for another twelve months from July 1 on favorable terms with the continuing support of its coventurers at Lloyd’s. Its consistently strong operating performance, together with an established reputation for service excellence, augur well for EOM’s continuing success over the years ahead.
Eagle Ocean Marine offers attentive, competitively-priced Protection and Indemnity and Freight, Demurrage and Defense insurance to the operators of smaller vessels, typically those in local and regional trades, who prefer a fixed premium approach to their P & I needs.
It provides the benefits of American Club primary cover and service capabilities, co-venturing the first layer of insurance protection with underwriters at Lloyd’s on a quota-share basis. Lloyd’s syndicates also participate in the facility’s excess reinsurance arrangements for limits up to $500 million per risk. In this way, Eagle Ocean marine offers the unsurpassed levels of service associated with an International Group club, underpinned by the impeccable security of reinsurance at Lloyd’s.
EOM insures ships from all over the world except the United States. It enjoys a strong presence in Asia, approximately 38% of its business currently being derived from Southeast Asia and 30% from Greater China. However, its share of the market in Europe has also grown over the past year, and now accounts for about 28% of its total portfolio.
EOM’s revenue has similarly increased over recent years. The insurance year just concluded featured a topline increase in revenue of approximately 25% over the previous twelve months which was itself over 20% higher than the year before. Total income for the year to June 30, 2018 exceeded $10 million for the first time. It is expected that steady revenue growth will be maintained over the forthcoming twelve months and beyond.
At the operating level, the last several years have enjoyed consistently good results. The incidence and severity of claims have remained at moderate levels, reflecting a prudent policy of risk selection and premium pricing, notwithstanding a highly competitive commercial environment. Since it commenced operations in 2011, EOM has generated an aggregate combined ratio of approximately 70%. This, together with confidence in EOM’s prospects generally, informed the recent favorable renewal of its reinsurances.
Eagle Ocean Agencies, Inc., the Manager of Eagle Ocean Marine, and an affiliate of Shipowners Claims Bureau, Inc., the Manager of the American Club, has recently secured the services of Simon Collins, a well-known and highly-regarded industry figure, as consultant to the management team. Mr. Collins brings a wealth of experience to EOM. His more than thirty-five years in the business, spanning every aspect and discipline of marine insurance, has given him an especially broad knowledge of the market, most recently in the senior management of a major player in the fixed premium P&I space. His services as consultant to EOM will add considerable impetus to its further global outreach.
At the same time, Sebastian Tjornelund has been appointed Business Development Director for Eagle Ocean Marine. Having been involved in the marketing of EOM for several years prior to his promotion to this expanded role, Mr. Tjornelund’s responsibilities will include building on EOM’s existing worldwide network of producers and other business associates in order to further grow its industry footprint over the years ahead.
Speaking in New York today, Joe Hughes, Chairman and CEO of Eagle Ocean Agencies, was thoroughly upbeat: “We are very pleased to report that Eagle Ocean Marine continues to enjoy a strong operating performance. Its increasing market share and steady profitability speak to a very promising outlook over the years ahead. We remain determined to make EOM a growing success for all its stakeholders: its insureds, the American Club, its reinsurers and its many other business associates.
“We are particularly pleased to have secured the consultancy services of Simon Collins. Simon is a very experienced and highly-regarded member of the marine insurance community, and we are all looking forward with great enthusiasm to working with him over the months and years ahead.
“It is equally a pleasure to announce Seb Tjornelund’s appointment as Eagle Ocean Marine’s Business Development Director. Seb has done a great job in recent years in promoting EOM’s interests across the globe, and I am sure that he will continue to enjoy every success in his new role, developing its business yet further over the years to come.
“We continue to take the long view when it comes to growing Eagle Ocean Marine’s position in the market. We will not lose sight of the need to apply careful risk selection, sensible pricing, effective loss prevention and unsurpassed claims service in building EOM’s reputation in the future. Inspired by the traditions of classic P & I mutuality, EOM will continue to occupy a special place in the fixed premium domain for all those who desire a high-quality approach to their insurance needs. We are confident that EOM’s business model will enjoy increasing success over the years ahead.”
Source: Eagle Ocean MarinePrevious Next