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Cyprus Shipmanagement Round Table Debate

Ship Management International’s Round Table and Cyprus Special Report

American Hellenic Hull Insurance Co.’s Chief Executive Ilias Tsakiris added his insight to a Round Table debate organized by Ship Management International magazine for the Cyprus Special Report published in its July/August issue.

The agenda focused on issues arising from the IMO 2020 low-sulphur regulations, digitalization and cyber risks, the Cyprus maritime cluster and the industry’s cooperation with the Deputy Ministry of Shipping.

With regards to IMO 2020, Mr. Tsakiris said that the new regulation is becoming a growing concern for underwriters. “We will have the question of unseaworthiness, and underwriters will rely much more on the classification societies, plus introducing and installing this type of technology will increase the insured values making the risk on the ship more expensive, so there will be more money coming out of the owners pockets by way of premium”, he told the Roundtable. Furthermore, in terms of cyber risks, he stressed that digitalization in shipping creates a new area of risk.

Mr. Tsakiris also considered that Cyprus may profit from developments connected with Brexit, due to the country’s favourable tax and regulatory environment. “I think we will see more underwriters coming in”, he said. Looking ahead to the Maritime Cyprus Conference 2019, Mr. Tsakiris stressed that all the major insurance brokers will be coming to the conference. “I think this year’s will be an even bigger success than previously,” he concluded.

 

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AHHIC supports the UNEP’s Finance Initiative Principles for Sustainable Insurance

American Hellenic Hull Insurance Company is among the leading signatory companies to the Principles for Sustainable Insurance (PSI) and a member of the global community of banks, insurers and investors of UN Environment Finance Initiative (UNEP FI).

Endorsed by the UN Secretary-General and insurance industry CEOs, the Principles for Sustainable Insurance (PSI) serve as a global framework for the insurance industry to address environmental, social and governance (ESG) risks and opportunities—and a global initiative to strengthen the insurance industry’s contribution as risk managers, insurers and investors to building resilient, inclusive and sustainable communities and economies.

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 industry’s impact in the environment and new risks related to sustainability.

“At American Hellenic Hull, we fully support the UNEP FI Principles for Sustainable Insurance, aiming to incorporate the social, environmental and business emerging issues into our sustainable and holistic approach, while working together with the insurance industry and the United Nations. In addition, we acknowledge that signing the PSI is a concrete example of sustainability leadership and commitment and we stand ready to adopt all four of the Principles for Sustainable Insurance.

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.” stated Mr. Ilias Tsakiris, CEO of AHHIC, to the Board Members of the PSI initiative.

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.

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