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Shoreline still free of claims

An insurance club set up to provide shipowners with "tickets-to-trade" to the US has continued without a single claim.

Jim Mulrenan, London   |   22 October 1998

Shoreline Mutual has so far escaped being dragged Into costly US oil pollution incidents although it provides the financial guarantees that enable owners of more than 70 million gt of shipping to obtain Certificates of Financial Responsibility (Cofrs).

The club's annual report, however, reveals the huge fall in the cost of Cofr guarantees through last year as new entrants created a more competitive market.

The Bermuda-based club gained an extra 475 members and 10.7 million gt of tonnage but still saw total premiums written fall to $ 12.7m from $30.6m a year earlier.

Total assets fell by $Sm to $11m but there was a slightly larger fall in liabilities to $9.4m. The total reserve of the club grew marginally to $1.66m, of which $1.4m was an unassigned surplus. The favourable claims performance will result in Shoreline Mutual receiving nearly $550,000 In a no-claims bonus from its reinsurers during the course of this year.

The club is headed by Donald Yearwood, formerly of the New York-based Attransco shipping company.

Other prominent members include Evergreen, Sanko, Osprey Maritime, N&T Argonaut, Fred Olsen Tankers and Marine Transport Corp.