Posts

Outstanding underwriting performance in first half of 2020

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: Positive first quarter of 2020

American Hellenic Hull Insurance Company Ltd (AHHIC) can report a positive first quarter of 2020 in terms of growth and operating performance.

  • 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.

AHHIC’s Business Continuity Plan in response

Due to the ongoing spread of the Coronavirus Disease 2019 (Covid-19), we have activated our Business Continuity Plan in response.  The World Health Organization (WHO) has assessed Covid–19 as a pandemic and this underlines the need for all parts of the value chain to react in a responsible way to address the risks and consequences of this contagious disease.

As marine underwriters, we commit ourselves to closely monitor and assess the risks and diminish high-risk behavior.

The health and wellbeing of our employees is our utmost priority. Therefore, all functions of Hellenic Hull Management and American Hellenic Hull Insurance Company Ltd with immediate effect will be conducted off-site, operating with a remote workforce.

Our management and employees all share the same dedication and loyalty, as well as the readiness to embrace innovation and respond to challenges.

They, together with our state-of-the-art information technology, enable us prevent disruptions to our business and to continue to securely provide premium, bespoke services to our clients.

As there is currently no vaccine to prevent Covid-19 infection, we will continue to remind our employees of the recommendations of public health authorities for everyday actions to avoid getting ill and help prevent the spread of respiratory diseases.

We will continuously monitor our employees to identify any cases requiring testing or treatment and we are closely monitoring the WHO and local health authorities for updates.

Our goal is that through being prepared and working together we can minimize the impact of Covid-19 on our staff, our clients and the public.

AHHIC’s outstanding performance continues

“Combined ratio in January 2020 stood at 88.6%”

American Hellenic Hull Insurance Company (AHHIC) is continuing its remarkable growth. January 2020 was the third best month in AHHIC’s history in terms of gross earned premium. From May 2019 onwards, the monthly results have consistently been among the best since the company’s inception.

AHHIC’s insured fleet stood at 2,636 vessels, a year-on-year increase of 16%. Furthermore, the underwriting profit for the three-month period November 2019 to January 2020 jumped to 45%, not including an additional 14% benefit from release of technical provisions at end of year. The gross loss ratio fell to 48.9% in January and the combined ratio decreased to 88.6%.

During January, the company’s assets increased by 6%. Current assets are 4.85 times current liabilities and represent 3.4 times the total amount of open claims, including all technical reserves.  Of AHHIC’s total liabilities, 52% is covered with cash and short- to medium-term investments in US Treasury bills.

“The new year begins with a record-breaking January in terms premium. As we charge full steam ahead into the new decade, we stand ready to face a wide range of challenges in the marine insurance industry. AHHIC’s upward trend will continue and our vision is to turn the fastest growing hull and machinery insurance company into the market’s global leader”, stated Mr. Ilias Tsakiris, CEO of AHHIC.

American Hellenic Hull represents the fastest-growing, dynamic force in marine insurance markets across the world aiming to provide more commitment, reassurance, consistency, proactivity and adaptability.

Circular_AHHIC_Its outstanding performance continues

Circular #6 American Hellenic Hull Insurance updates and business progress

American Hellenic Hull reports significant premium growth

September marked completion of an operationally profitable second quarter of the year for American Hellenic Hull. At a 9th October meeting in Cyprus, AHHIC’s Board of Directors was extensively briefed on the robust state of the company.

Chairman, Vince Solarino, stated: “We at American P&I Club will continue to support further growth in the turnover of American Hellenic and we firmly believe that it represents a new, growing, dynamic force in marine insurance markets across the world”.

Particularly noteworthy was a significant increase in premium for the year to date, thanks partly to a number of new accounts added at the end of month. Τhe gross written premium for the period of January to September 2018 increased by 16% compared with last year at the same stage. At the end of September, the company’s insured fleet showed a year-on-year increase of 15%, numbering 2,160 vessels. The average line of cover stood at 8%.

Data presented to the Board by the managers also showed that AHHIC’s total assets for September 2018 were 18.5% higher than at the end of 2017, whereas the ratio of current assets to current liabilities stood at 445% compared with 330% at the end of last year. The underwriting loss ratio stands at 67.6%, while the company’s operational expenses are 12.9% below budget amounts.

During the briefing the managers reported that in September, AHHIC’s own funds stood at 116.1% of the Solvency Capital Requirement (SCR) and 159.30% of the Minimum Capital Requirement (MCR).

“We are delighted about the company’s continuing upward trend and its profitable operation,” said Ilias Tsakiris, CEO of American Hellenic Hull. “American Hellenic provides highly synergistic hull and machinery solutions to the global shipping industry, while our track record is second to none. We shall continue developing our reputation and growing brand-recognition of AHHIC throughout the world’s key shipping communities. Our target is to double the value of the company’s initial investment within the next five years,” stated Mr. Tsakiris.

Circular #6

Circular #5 American Hellenic Hull Insurance updates and business progress

September was best month so far for American Hellenic

After 15 months of successful operations and faster than expected growth, American Hellenic Hull’s Board of Directors analyzed the company’s standing during its meeting of 11th October that took place in the Four Seasons Hotel, Limassol, Cyprus, under the chairmanship of Vincent Solarino. The Board also focused on forthcoming business challenges and the pending rating of the company by AM Best.

AHHIC’s managers reported that the company now has more than 2,000 vessels insured, a fleet that stands 33% above projections, and that premium income has increased by 39% over the past four months. The loss ratio currently stands at 56.17%.

September was the best month in the company’s young history in terms of insurance profitability. Buoyed by these encouraging figures, AHHIC now begins its scheduled annual roadshow in the Far East.

The managers informed the Board of Directors that the company for the first time will be able to submit its third-quarter results to the Superintendent of Insurance fully via the Asseco SII Engine. All necessary technical tests were successfully completed by the actuarial, IT and accounting teams during summer.

Circular #5

Circular #4 American Hellenic Hull Insurance updates and business progress

In its fourth circular, American Hellenic Hull reported on progress in its first year of operations.

Read more