Circular No. 14/97 - The American Club's application to become a party to the Pooling Agreement
To: MEMBERS OF THE ASSOCIATION December 9, 1997
Dear Member: Circular No. 14/97
THE AMERICAN CLUB'S APPLICATION TO
BECOME A PARTY TO THE POOLING AGREEMENT
As most Members will be aware, The American Club has recently been seeking to become a party to the International Group of P&I Clubs' Pooling Agreement or, put another way, to achieve direct rather than reinsured involvement in the International Group's claims sharing Pool. This Pool is central to the collective reinsurance arrangements which underpin Group financial strength and from which members of Group Clubs receive significant cost advantages.
Since 1989 The American Club has participated in the Pool (and, concomitantly, in the Group's market cover over and above the Pool ceiling) by way of reinsurance through the London Steam-Ship Owners' Mutual Protection and Indemnity Association Limited. Although this arrangement afforded American Club Members the same levels of P&I cover as those available to members of other Group Clubs involved directly in the Pool, and has always featured close and friendly cooperation with the London Club, it was for a variety of reasons not to the maximum advantage of The American Club.
The American Club accordingly has great pleasure in announcing that with effect from February 20, 1998 it will become a direct rather than reinsured participant in the Pool. This is as a result of the Club's recent application to become a party to the Pooling Agreement having been unanimously approved by all other Group Clubs.
This is an important development for The American Club and has a number of significant, and beneficial, implications for the future. The Circular (No. 15/97) issued as a companion to this document reviews,inter alia, rating policy for the forthcoming 1998 renewal upon which the Club's acquisition of full pooling status has had a helpful effect. Other positive developments are also expected to flow from the Club's new status in this area.
The Managers will be pleased to answer any questions Members may have in relation to this news.
Joseph E.M. Hughes, Chairman & CEO
Shipowners Claims Bureau, Inc., Managers for
THE AMERICAN CLUB