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Facing the Challenges Head On

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Facing the Challenges Head On The Swedish Club No. 2 - 2014 AGM REPORT Page 4-23 Facing the challenges head on Entering into The first wave of the MRM Campaign Builder’s – a resounding success! Risk Page 28-29 Page 26 Legal update: What it is all about Page 25 | Content | 3 LEADER 24 CLUB INFORMATION Presumed innocent until proven guilty! Marine Insurance Course 4-23 ANNUAL GENERAL MEETING 25 LEGAL UPDATE What it is all about Managing Director’s Report 4-5 Keynote speaker: Martin Stopford 6-7 Keynote speaker: Magnus Lindkvist 8-9 STRATEGIC BUSINESS DEVELOPMENT & Panel discussion: 26 CLIENT RELATIONSHIP Putting the eco-ship into perspective 10-11 Entering into Builder’s Risk Panel discussion moderator: Khalid Hashim 11 AGM-profiles: Martin Stopford 12 Dagfinn Lunde 12-13 Carl-Johan Hagman 13 John Coustas 14 Hermann Klein 14 The Swedish Club Board of Directors 2014 15 27-29 SAFETY Why do heavy weather claims occur? 27 The first wave of the MRM Campaign – a resounding success! 28-29 Martin Hernqvist speaks at the 17th European New Board Member: Manning and Training Conference 29 Michael Bodouroglou, Allseas Marine 16-17 Early Arrivals Dinner 18-19 30-36 CLUB INFORMATION News from Team Piraeus 30 News from Team Gothenburg 30 News from Team Norway 31 News from Team Asia 31 Out and About 32-35 Staff News 35 Club calendar 35 Club quiz 35 Contact 36 AGM Dinner 20-21 Out & About: Mutual Cup 22 Out & About: Partners’ Programme 22 Out & About: The Swedish Club Grand Classic 23 Out & About: A day outside 23 | 2 | Triton 2 – 2014 August | | Leader PHOTO: Presumed innocent Ahlsén Jonas until proven guilty! Lars Rhodin Managing Director Dear members and associates, Presumed innocent until proven guilty is a fundamental “Women and children first” does not seem to apply principle in criminal law. It is not until the prosecutor has anymore. We saw that in the Costa Concordia case too – a submitted evidence “beyond reasonable doubt” that the captain who slipped into a lifeboat way ahead of other suspect can be found guilty of a crime at trial. Until then, people onboard. This deplorable behaviour is evidence of the wrongdoer is not guilty under criminal legislation. a bad, inexcusable culture; it does make a great disservice This principle however does not seem to apply in marine to the industry, creates a major outcry and gives us a very casualties. The media and society has little tolerance strong case of “guilty”. with shipping accidents. I can understand this reaction in The Swedish Club’s AGM 2014 in June carried a strong cases involving loss of life, but less in incidents resulting programme, in common with previous years, which again in environmental damage and property loss. Yet the generated a high level of interest. Dr Martin Stopford is a presumption in all these cases is “guilty”. world name and second to none in shipping research. His The tragic ferry sinking of the MV Sewol in South Korea in thought-provoking speech on Members’ Day “Past, Present April resulted in widespread social and political reaction in and Future of shipping” led us in to an interesting debate South Korea; from criticism of the actions of the captain and on the state and prospect of the industry with the high- most of the crew of the ferry, to criticism of the ferry operator powered group of panelists. and the regulators who oversaw its operations, to criticism Our second keynote speaker – Magnus Lindkvist – took of the South Korean government and media for its disaster us on a journey past tomorrow in a way only trend spotters response and attempts to downplay government culpability. and futurologists can do. These items are fully covered in the Subsequently, the captain and three crew members were Triton together with the other features and social activities of charged with murder, while the other 11 members of the the events, so please enjoy your read. crew were indicted for abandoning ship. The Swedish Club Triton is published three times a year Production Coordinator © The Swedish Club and distributed free of charge. The Swedish Club Triton is an Susanne Blomstrand Articles or extracts may be quoted provided that The Swedish Club is editorially independent newsletter and opinions expressed PR-consultant credited as the source. by external contributors are not necessarily those of The Elaborate Communications Ltd Swedish Club. Articles herein are not intended to provide Layout legal advice and the Club does not accept responsibility Eliasson Information, Gothenburg for errors or omissions or their consequences. For further Print information regarding any issue raised herein, please contact Cover photo: Jonas Ahlsén PR Offset, Mölndal [email protected] our head office in Gothenburg. 14085000B www.swedishclub.com Triton 2 – 2014 August | 3 | | AGM/ Managing Director's Report | Returning a strong perfo rmance “Last year was a good year for the Club and our goal is to grow a bit more than the mar- with results showing a positive return on ket. In P&I we have grown by 50% over the past investment and a very good contribution four years, against a growth in the world fleet of from the underwriting side,” said Lars 30%. P&I volume in terms of tonnage increased Rhodin, The Swedish Club’s managing by 8% in 2013, which was in line with expecta- director, during his address to the Club’s tions. The year saw the P&I fleet pass the 55 mil- 142nd Annual General Meeting (AGM) in lion gross tonnes mark. Gothenburg on 12 June. In H&M we have increased the number of units we insure from 1,500 to 2,000. Part of this “We had a strong operating performance, return- ing a surplus of USD 17 million, and we saw Managing Director’s Report further diversification within marine and energy with planned growth in all sectors.” is regular growth and part is the addition of more During the year, the Club strengthened its of- offshore service vessels which we have entered in fice in Norway, decided to offer its Maritime -Re through our regional offices.” source Management (MRM) programme free of He also pointed to the strong contribution charge to members and saw its free reserves rise that came from the underwriting side. He add- to a historically high level of USD 168 million. ed: “We saw a total net combined ratio of 93% The Club sees MRM training as a significant which was made up from a net combined ratio in contribution to the drive to reduce large naviga- marine of 67%; a net combined ratio in energy tion claims resulting from human error. of 84%; net combined ratio in P&I of 112% — The strengthening of its services to the Nor- which is acceptable under the circumstances — wegian market includes the offshore service ini- and a net combined ratio in FD&D of 81%.” tiative, described in the Club’s annual review as While claims frequency may have been up a being of particular significance. little, the size of the average claim fell in P&I. While the scrapping of elderly tonnage during There was a rise in cargo and injury claims last 2013 has had an adverse impact on the premium year, members were told. income of some clubs, the average age of The Hull and machinery average claim costs were Swedish Club’s P&I fleet is just 9.7 years old, so down in 2013 compared to the previous year’s the disposal of older ships had less effect on pric- figures, although the number of H&M claims ing. per vessel showed an upward trend. The year in review 2013 – a good year for the Club He told members attending the AGM that the He reiterated that 2013 was a good year for the results were the combination of four factors: Club and it developed well in all areas. “Not that “First of all we had a benign claims year; then we many companies stand the test of time over so saw the effects of diversification over many prod- many years and so many economic cycles,” he ucts in different business areas and we also had a said, but some companies do. “History is sup- strong marine operating performance with a very portive because that gives us identity and experi- good combined ratio. The way we transfer risk ence.” today means the Club takes more risk, enabling He stressed the importance of the Club’s us to conserve the upside.” long-standing relationships in a business which The Swedish Club’s managing director also is based on trust. “Insurance is not a quick fix underlined the importance of the Club’s future but a matter of long term confidence. 2013 was growth strategy. He said: “Growth is important the year when the Club showed progress despite | 4 | Triton 2 – 2014 August | / Managing Director's Report | AGM PHOTO: Jonas Ahlsén Jonas Returning a strong perfo rmance the tough conditions prevailing for shipping we were fortunate to make a bottom line [surplus] of USD 17 million.” He reminded the audience of the spiralling cost of casualties like the Costa Concordia and the Rena. There has been considerable concern in the industry about the rising cost of wreck removal, which often was aggregated by excessive intervention from coastal states. Changes in The Swedish Club Board The Swedish Club appointed two new directors at its AGM including Idil Baran of the CerBa Group and Michael Bodouroglou of Allseas Ma- rine, which manages Paragon Shipping and Box Ships’ fleets. Captain John P. Samartzis of JP Samartzis Maritime Enterprises S.A. and Suay Umut of Dünya Denizcilik ve Ticaret A.S.
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