NorthStandard has announced a 5% increase in Protection and Indemnity (P&I) premiums for the marine insurance year beginning on February 20, 2026. This decision reflects the ongoing unpredictability and risks within the market. The marine insurer anticipates an increase in premium income for 2025-26, projecting $930 million compared to $886 million in the previous year. Additionally, it expects improved investment returns, higher reserves, and continued success from its diversification strategy.
Despite these positive projections, NorthStandard considers a modest premium increase for 2026-27 to be prudent given the current risk landscape. The company forecasts free reserves to reach $900 million, up from $800 million, and predicts investment returns to rise to over 6%, slightly above the 5.9% recorded in 2024-25. However, challenges remain, including geopolitical disruptions affecting major trade routes and the unpredictability of large claims, such as ship fires.
Maintaining its S&P Global ‘A’ rating and ‘Stable AAA’ capital strength, NorthStandard’s managing director, Paul Jennings, emphasized the importance of this premium increase for ensuring a strong underwriting position. He expressed confidence in the company’s long-term strategy while acknowledging the complexities of the current market. Meanwhile, Jeremy Grose, the company’s other managing director, highlighted the positive performance of their specialty lines, which have shown resilience and contribute to the firm’s overall financial stability.
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