UK P&I Club, a provider of Protection & Indemnity insurance to the global shipping industry, has agreed a 4.5% general increase for the 2027 policy year reflecting ongoing claims inflation and the rising cost and complexity of major casualties.
The Club’s 2026/27 performance remains in line with expectations. Benign pool claims and positive prior-year developments offset higher year to date retained claims, projecting an improved year-end combined ratio of approximately 100% on 2025/26.
Investments have also generated sound returns and the Club continues to be very strongly capitalised, with free reserves of more than US$600 million.
Building on this financial strength, the Club and TT Club jointly acquired Thomas Miller Holdings in October 2026, bringing the management under Club control and retaining more value for Members.
This strategic move brings management directly under Club control, delivering greater long-term value to Members.
Moreover, the acquisition represents a key milestone within the broader transaction to merge both Clubs on February 20, 2027, pending regulatory approval. By uniting their complementary capabilities, the transaction will establish the first transport mutual covering the entire cargo supply chain.
Inflation continues to drive up underlying loss costs, especially for illness and injury claims. Major casualties are growing more complex and expensive, with salvage, environmental response, wreck removal, and third-party liabilities outpacing general inflation, alongside expected cost increases for the 2027 International Group reinsurance programme.
While premiums must match rising costs, the Board limited the General Increase to 4.5% due to the Club’s financial strength and merger benefits. Individual renewal terms will depend on each Member’s record, risk profile, and current terms.
The Club also aims for a 10% increase in deductibles under US$50,000, with a minimumUS$1,000 increase.
William Beveridge, Chief Underwriting Officer, UK P&I Club, said: “The General Increase reflects the continuing rise in underlying claims costs. Pool claims have been relatively benign this year, but major casualties are becoming more expensive and complex, and the cost of illness and injury claims continues to rise. The Club’s financial strength, and the expected future benefits of the merger, allow us to take a longer-term view, keeping the General Increase to 4.5% while recognising that premiums need to cover the inflationary increase in the cost of claims.
“The Club is in a robust position. We expect to improve our combined ratio this year, our investments continue to perform well, and our capital base remains among the strongest in the International Group. This sets firm foundations for our strategy to grow and diversify. Our merger with TT Club is a key part of that strategy, and today’s market complexity highlights its relevance. Together we will have greater scale and even stronger financial resilience, with more capacity to invest in the expertise and support our Members rely on as their risks change.”
