P&I Clubs Reported Surplus Following 2025/26 Policy Year
Global maritime operators should track how shifting underwriting results and investment returns influence future premium renewals.
Updated on Sept. 23, 2026 in Corporate Finance
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All 12 members of the International Group of P&I Clubs finished the 2025/26 policy year in surplus, driven by over US$1 billion in investment returns. This recovery follows a challenging 2024/25 period where the market combined ratio reached nearly 110%.
Why it matters
The shift in underwriting results directly impacts operational overhead for vessel operators, who face premium fluctuations based on how these clubs manage claim frequency and investment income. Stabilizing claim values helped the clubs recover from a 21% surge in incurred claims in 2024/25.
Combined free reserves across the 12 Clubs grew by US$800 million to reach US$6.8 billion total. This follows a 2024/25 fiscal year marked by US$3.73 billion in incurred claims, representing a 21% increase over the prior year.
The players
International Group of P&I Clubs
An association of 12 mutual insurance clubs that provide liability coverage for approximately 90% of the world's ocean-going tonnage.
London P&I Club
A major marine protection and indemnity insurer that recorded 14.5% tonnage growth during the 2026/27 renewal period.
Skuld
A marine insurance provider that expanded its mutual P&I tonnage by 6% during the 2026/27 renewal cycle.
Tysers
An independent insurance broker and market analyst that monitors global maritime underwriting performance.
The details
Clubs successfully offset underwriting results by leveraging strong investment returns to maintain capital strength. While five of the 12 clubs achieved a positive technical underwriting result, the overall market faced an estimated underwriting loss of US$250 million for the year. Increased stability in lower-value claims and fewer large-scale casualties allowed clubs to absorb the impact of the prior year's claims surge.
Timeline
2024/25 saw the market combined ratio climb to nearly 110%.
The 2025/26 policy year resulted in a surplus for all 12 Clubs.
Tysers is scheduled to release an update on the P&I market in December 2026.
The next P&I renewal season is set for February 2027.
Market Landscape
The return to surplus for the 2025/26 period marks a departure from the high volatility seen during the 2024/25 P&I market combined ratio of 110%. The industry is now stabilizing after a period of intense pressure caused by a 21% surge in incurred claims.
Vessel operators should monitor premium adjustments following these results, as clubs seek to balance underwriting losses against investment gains. Factoring in potential premium changes for the February 2027 renewal is critical for budgeting annual fleet liability coverage.
The takeaway
The return to surplus across the International Group suggests a cooling in the aggressive premium hike cycle. Maritime operators should track upcoming reports from brokers like Tysers to prepare for February 2027 renewal negotiations.
What happens next
Tysers will release an updated report on the P&I market in December 2026, followed by the industry renewal season in February 2027.
Further reading
For broader trends in industry solvency and risk management, see Corporate Finance.
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