Norwegian shipowner Tschudi & Eitzen has obtained the first Certificates of Financial Responsibility (COFRs) to be backed by guarantees from recently established Arvak.
Arvak - a new COFR scheme established with the support of Oslo-based protection and indemnity (P&I ) club Assuranceforeningen Skuld, but which is independent of the P&I club - has so far quoted for about 20 fleets.
Market sources suggest there is little price difference between Arvak's COFR scheme and those provided by Shipowners Insurance and Guaranty and by Shoreline Mutual. However, Arvak's rates, on the limited information so far available, appear to be slightly lower, perhaps because it is taking no retention, but operating basically as a "group captive" that allows shipowners access to the wholesale pricing of the reinsurance market.
The chairman of Bermuda-based Arvak is James Barker of the Stamford, Connecticut-based Mormac Marine Group. Shipowners on the board include Anders Berg of Nordstrom and Thulin, Lars Carlsson of Concordia Maritime, Clarence Dybeck of Stockholm Chartering and Axel Eitzen of Tschudi & Eitzen. Barker Is also chairman of the Skuld committee. The other Arvak directors are from companies that have vessels insured with Skuld.