American Hellenic Hull CEO Ilias Tsakiris has been named among the Top 10 in Marine Insurance 2020 by Lloyd’s List, the internationally reputed information provider for shipping since 1734.
Mr. Tsakiris was included for the first time in the publication’s annual Top 10 in Marine Insurance 2020, published as part of its eagerly-awaited ‘One Hundred People 2020 Edition’, a list of the most influential people in shipping.
According to Lloyd’s List, The Top 10 in marine insurance list is collated by Lloyd’s List editorial team and considers a mixture of traditional power-brokers in an insular niche, as well as those doing noteworthy things within it.”
His entry notes that Mr. Tsakiris is “at the head of a dynamic new entrant in the sector, and he is shaking things up.”
Since its inception in 2016, AHHIC has invested in innovation, becoming the fastest growing marine hull and machinery insurance company globally.
During 2020, AHHIC exceeded all projections and reached the milestone of 3,000 insured vessels in its hull portfolio.
Recent pioneering steps made by Mr. Tsakiris include a partnership with World Maritime University to launch a postgraduate diploma in marine insurance. A firm believer in sustainability, he has also led AHHIC to become the first marine insurer to sign up to the United Nations Environment Programme Finance Initiative Principles for Sustainable Insurance. The company has similarly become the first in its sector to sign the UNEPFI Sustainable Blue Economy Finance Principles. AHHIC was the only dedicated marine insurance company that participated in the development of UNEPFI’s first global guide to managing environmental, social, and governance (ESG) risks in non-life insurance sectors.
“This comes as welcome recognition of all the effort that has been invested in establishing American Hellenic Hull as a reputable force in the market in such a short space of time,” Mr. Tsakiris commented.
“Being listed among the Top 10 in Marine Insurance 2020 professionals internationally by Lloyd’s List, a historic information provider synonymous with the shipping and insurance industries, is a great encouragement for all of us in AHHIC. We look to build on our success to date and further invest in our strategy of being a leader in sustainable marine insurance,” he added.
The Sustainable Blue Economy Finance Principles guide AHHIC underwriting, finance and claims processes.
American Hellenic Hull Insurance Company is among the leading signatory companies to the Sustainable Blue Economy Finance Initiative as a member of the global community of banks, insurers and investors of UN Environment Programme Finance Initiative (UNEP FI).
Endorsed by the European Commission, WWF, the World Resources Institute and the European Investment Bank (EIB), the Sustainable Blue Economy Finance Principles serve as a global framework for financing a sustainable ocean economy. This global initiative aims to strengthen the insurance industry’s contribution as risk managers, insurers and investors to building resilient, inclusive and sustainable blue economy.
As a marine insurer, American Hellenic Hull Insurance Company provides hull and machinery services to the international shipping industry that is currently called upon to adapt to a wide range of challenges. Not least among these are new requirements deriving from the International Maritime Organization’s regulations aimed at reducing the industry’s impact in the environment and new risks related to sustainability.
At American Hellenic Hull, we fully support the Sustainable Blue Economy Finance Initiative, aiming to apply the principles and incorporate the emerging social, environmental and business issues into our sustainable and holistic approach, while working together with the European Commission and the United Nations.
Since inception, our company has sought to be a leader within our sector in offering greater transparency, responsiveness to clients, greater reliability and more awareness of risk to the shipping market. We are prioritizing Sustainable Development Goals at all levels of company activity. Safety, security and sustainability are at the heart of our underwriting and claims processes.
AHHIC believes in being proactive to achieve a more sustainable future. This is particularly important in the marine insurance sector, given the essential role of insurance and the pivotal role that maritime transport plays in global sustainability.
American Hellenic Hull Insurance Company Ltd (AHHIC) recorded outstanding underwriting performance during the first half of 2020, amidst a challenging global environment mainly due to the Covid-19 pandemic. The company’s success derives from the timely and well executed implementation of its Business Continuity Plan, as well as the recognition of AHHIC as one of the leading players in the Marine Insurance industry.
Exceeding all projections, AHHIC managed to surpass the milestone of a 3,000 vessels strong hull portfolio, with 3,060 insured fleet for hull and machinery on 30 June 2020. With a record breaking first half year, the company showed a year on year increase of 52% in the gross written premium.
We wish to thank all our clients for their trust during these challenging times and to welcome the new additions to our portfolio, which include, among others, Starbulk Group, TMS Group, Diamond S, Chartworld and Interorient.
“Looking ahead, our three-year business plan is expected to remain unaltered as we focus on becoming the leading company in the international hull and machinery market”, said Mr. Ilias Tsakiris, CEO of AHHIC.
AHHIC actively supports sustainable insurance practices
World’s insurers and UN Environment Programme launched the first global insurance industry guide to tackle sustainability risks, co-led by United Nations Environment Programme (UNEP) and Allianz and involved other leading insurers, insurance associations, and academic institutions from across the globe. The members of the Principles for Sustainable Insurance project team that developed the guide include American Hellenic Hull Insurance Company, American Property Casualty Insurance Association, AXA, Generali, MAPFRE, Munich Re, QBE, RSA, Santam, Swiss Re, Temple University’s Fox School of Business, University of Technology Sydney, West Chester University, and Zurich.
“AHHIC is the exclusive marine insurance company, among world’s insurers and institutions, participating in the development of the first global guide, which provides the framework for the insurance industry to manage Environmental, Social and Governance issues”, underlined Mr. Ilias Tsakiris, CEO of AHHIC.
Following a comprehensive global consultation process, leading insurers from around the world and the UN Environment Programme (UNEP) launched the first global insurance industry guide to tackle a wide range of sustainability risks—from climate change, ecosystem degradation, pollution and animal welfare and testing; to child labour, controversial weapons, and bribery and corruption.
The guide, Managing environmental, social and governance (ESG) risks in non-life insurance business, outlines 8 areas comprising possible actions for insurers to manage ESG risks—also known as sustainability risks—in non-life insurance transactions, focussing on risk assessment and insurance underwriting. These areas include developing a company’s ESG approach and risk appetite, integrating ESG issues into the organisation, establishing roles and responsibilities for ESG issues, escalating ESG risks to decision-makers, detecting and analysing ESG risks, and decision-making and reporting on ESG risks.
“We are proud to be the exclusive marine insurance company to sign the United Nations agenda, supporting the United Nations Environment Programme Finance initiative, Principles for Sustainable insurance since June 2019. As members of the global community of banks, investors and insurers of UN Environment Programme Finance Initiative, we encourage the insurance industry to endorse ESG issues in underwriting, risk assessment and investments, and support the United Nations initiative. It’s time for action and as underwriters we need to fully embrace sustainability in all aspects of our business activity.”, stressed Mr. Ilias Tsakiris.
Positive first quarter of 2020 for American Hellenic Hull Insurance Company
- A 206% year-on-year increase of underwriting profit margin and a loss ratio of 64% as AHHIC successfully implements its business continuity plan in response to the Covid-19 pandemic
In early March, AHHIC activated its business continuity plan in response to the coronavirus pandemic. Since then, all company activities have been conducted off-site, with staff working remotely. AHHIC’s utmost priorities are to protect the health and well-being of its employees, combined with maintaining undisrupted its clients’ interests.
At 31 March 2020, the insured fleet stood at 2,637 vessels, showing a year-on-year increase of 15%. At the same time, the company’s gross earned premium for the quarter was increased by 82%.
The underwriting result (earned premium net of reinsurance cost minus claims after reinsurance recoveries) for the three-month period showed a profit margin of 26.1% compared with 15.5% in the first quarter last year. In absolute values the underwriting profit jumped by 206.1% thanks to a significant increase of premium income and the reduction of the loss ratio to 64.4%. All the company’s key performance indicators were improved.
- Nearly 50% of company’s assets held in bank accounts and bonds, liquidity ratio increase to 625% provides protection against Covid-19 effects
The company holds 46% of its total balance sheet assets in cash and bond investments. This equates to 1.43 times the company’s premium receivables and 1.38 times open claims (before deduction of reinsurers’ share). The key liquidity ratio (current assets to current liabilities) increased to 625% from 490% at the end of 2019 and from 389% at the end of the first quarter 2019. This means that current assets are sufficient to meet the company’s short-term liabilities by 6.25 times. The company’s cash flow has been significantly strengthened amidst the Covid-19 crisis.
- Minimal expected impact on the company’s assets from the Covid-19 pandemic – AHHIC stands ready for any catastrophic event outbreak amidst the Coronavirus pandemic
According to stress tests currently carried out by the company, negative developments in global trade and transportation during the pandemic are not expected to affect AHHIC’s financial status or growth. Some vessels are likely to be laid-up in ports and anchorages worldwide due to the pandemic’s impact on trade and as a result navigation risks and hull and machinery casualties are likely to be diminished.
Under AHHIC’s business continuity and operations plan, which is based on a hybrid structure of remote and cloud servers, the pandemic does not pose any threat to the company’s ongoing preparedness to face even another catastrophic event.
Following the first of its kind Memorandum of Understanding signed by the World Maritime University (WMU) and American Hellenic Hull Insurance Company (AHHIC) on cooperation in the field of marine insurance, American Hellenic Hull and its CEO, Mr. Ilias Tsakiris, welcomed WMU’s students visiting Greece for their field study program, in a reception that took place on February, Tuesday the 27th at Hellas Liberty Museum.
At American Hellenic Hull, we are striving to serve the Sustainable Development Goal No 4, aiming to advance quality in education, by sharing our knowledge and expertise in the field of marine insurance and achieving the interconnection between the educational institutions and the shipping industry.
At the event, Mr. Ilias Tsakiris shared his knowledge and experience in marine insurance with WMU students, who are seen as the future key maritime decision – makers in numerous countries across the world. Mr. Tsakiris’ presentation followed a fruitful debate, during which the students raised questions on the future of the marine insurance market and the emerging issues related to IMO’s new regulations.
Furthermore, during the reception WMU’s Professor Mr. George Theocharidis provided a keynote speech, presenting WMU’s students, while Ms. Elina Souli, Regional Business Development Director of the Shipowners Claims Bureau, managers of The American P&I Club, shared her expertise on the P&I perspective with regards to marine insurance.
AHHIC will continue to invest in education, as among the areas of agreement of the MoU between AHHIC and WMU, are a marine insurance postgraduate diploma, professional development courses, and marine insurance related events.
The World Maritime University is established within the framework of the International Maritime Organization (IMO), a specialized agency of the United Nations. As IMO’s premier centre of excellence for maritime postgraduate education, research, and capacity building, the University offers unique postgraduate educational programmes, undertakes wide-ranging research in maritime and ocean-related studies, and continues maritime capacity building in line with the UN Sustainable Development Goals.