UK P&I Club takes measured 2027 P&I premium renewal position as it continues plans to reinforce resilience and support for Members

The Board of the UK P&I Club has agreed a 4.5% General Increase for the 2027 policy year reflecting continuing claims inflation and the rising cost and complexity of major casualties.

The Club’s 2026/27 performance remains in line with expectations. Pool claims have been relatively benign during this period, and whilst retained claims have been higher than forecast year to date, the positive development on prior-year claims means the Club forecasts a year-end combined ratio of approximately 100%, an improvement on 2025/26. Investments have also generated sound returns and the Club continues to be very strongly capitalised, with free reserves of more than US$600 million.

Building on this financial strength, the Club and TT Club jointly acquired Thomas Miller Holdings in October 2026, bringing the management under Club control and retaining more value for Members. The acquisition forms part of the wider transaction that will bring the Clubs together on 20 February 2027, subject to regulatory approval. Combining the Clubs’ complementary strengths will create the first transport mutual to span the full cargo supply chain. Current market conditions reinforce the rationale for the merger, which will create greater scale, even stronger financial resilience and more capacity to invest in claims handling, loss prevention and specialist expertise.

Inflation continues to impact underlying loss costs, particularly for illness and injury claims. The Club also sees major casualties becoming more complex and costly, with salvage, environmental response, wreck removal and third-party liabilities able to rise well ahead of general inflation. Upward pressure is also expected on the cost of the International Group reinsurance programme for 2027.

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