Shoreline Mutual not ruffled by manager's problems

Bermuda-based Mutual Risk Management had to seek a waiver from lenders on a $180m line of credit but the move appears to have had no impact on either Shoreline Mutual or the Arvak scheme.

Shoreline Mutual is the second biggest provider of financial guarantees to enable US-trading vessels to obtain Certificates of Financial Responsibility (Cofrs) mandated under US oil pollution legislation.

Arvak, originally linked to the Skuld protection and indemnity (P&I) club, is another leading player in thee Cofr market. It is independent from Shoreline but has common management.

Mutual Risk Management breached a loan condition as a result of the insolvency of Reliance Insurance which forced it to take a charge for unrecoverable reinsurance.

However, Marilyn Feldman, president of Shoreline Mutual Management, told TradeWinds this week that issues relating to the waiver are having no impact on the company's business operations.

Shoreline Mutual provides guarantees enabling 2,604 vessels to obtain Cofrs. Arvak provides this service to 526 ships.

There are more than a dozen organisations recognised by the National Pollution Funds Center, an arm of the US Coast Guard, as providers of Cofr guarantees.

The market leader is Sigco, originally sponsored by the UK Club, covering 6,600 ships. Other leading players include the New York-based Water Quality Insurance Syndicate and underwriters at Lloyd's.