Wednesday, 23rd January 2008
International Group General Excess Loss Reinsurance Contract Renewal 2008/2009
The arrangements for the renewal of the International Group general excess loss contract and Hydra programme for 2008/09 have now been finalised. There have been general increases for all the vessel types. Just Arne Storvik, Chairman of the Group Reinsurance Sub-Committee commented: "There are generally two factors that influence any increase in the Group reinsurance costs - the first is the market cost of reinsurance and the second is the premium required for Hydra. Given the claims experience across the market in the last two years, it is hardly surprising that there has been a negative impact on Hydra’s loss record and that additional premium is required. It is important to remember however that in the absence of Hydra these losses would have been borne by the Group’s reinsurers and would have adversely impacted on the cost of the Group general excess loss reinsurance contract on the 2008 and future renewals. The strategic objectives and underlying rationale of Hydra are unaffected by the initial adverse claims experience and there is a strong commitment to the continued development of the Hydra participation in the Group reinsurance programme."