Approval has been granted for the merger of North and Standard Club following separate member meetings that strongly endorsed the plan to create a leading global marine insurer and one of the largest providers of mutual cover in the maritime industry.
Both clubs held special general meetings on May 27th, where members approved the proposal to combine the two organizations into a single mutual insurer.
This approval paves the way for the establishment of North Standard, a unified club, by February 20, 2023, in time for the next renewal date. The merger is still subject to approval by the relevant regulatory authorities.
The merger will form one of the largest providers of mutual cover in the maritime industry, with consolidated annual premiums of approximately US$750 million. With 300 years of combined P&I heritage, North Standard will unite some of the most respected expert teams in maritime risk management.
“This is an excellent outcome and a significant milestone for our industry,” said Grose. “North Standard will be a major new force in marine insurance, providing the resilience members need from their P&I partners to navigate the challenges and competitive landscape of a changing shipping world. We are delighted that our proposal received such strong support from the members of both clubs.”
“For the merger to proceed, it was critical to secure member recognition of the proposal’s positive outcomes for continued service excellence, as well as the opportunities brought by diversified product lines, scale economies, and global reach.” Grose emphasized that NorthStandard will combine two unique advocates of mutuality within the International Group of P&I Clubs, whose complementary cultures, ambitions, and approaches will work together to deliver added value for all members.
“North members expressed overwhelming support for the merger based on the tangible benefits for shipowners that the consolidation will bring,” commented Jennings. “Members welcomed the proposal, recognizing that it would reinforce stability, strengthen competition in the P&I sector, encourage innovation, and drive further product diversification.
“A larger organization will also attract and retain even more top talent to ensure that North Standard delivers the highest levels of service and support for members,” Jennings concluded.