Chairman's speech at Lloyd's event

logohclbaThe speech of HCLBA's chairman, Mr. Manos Lorentzos, at the Lloyd's event on 26/6/2013.

 

You are obviously all well aware of the significance of the Greek shipping industry.

For the non marine underwriters who might not be familiar with the figures, here are some in order to illustrate the above statement:

According to the Hellenic Chamber of Shipping March 2013 statistics, Greek controlled ships over 1000 gross tones are 3,677 in number, and represent a cargo carrying capacity of 265,336,520 deadweight tonnes. The above figures represent respectively 8 pct and 16 pct of the world fleet in terms of ships numbers and cargo carrying capacity, or, alternatively, 16 pct of the world seaborne trade is being performed by Greek controlled ships.

Ships are mainly insured against two types of risks:
1. The ones related to their Hull and Machinery , i.e. Total loss of the insured ship or partial damage to their hull or machinery 2. The ones related to their liabilities , called Protection and Indemnity insurance.

The global H&M premium was 8.3 billion USD in 2011,and it is written in several insurance markets across the world; Lloyds represents the biggest H&M market, with almost 15 pct of the global H&M premium written here.

The global P&I premium was 3.4 billion USD in 2011, written by 13 P&I Clubs, which are then jointly reinsured under a common reinsurance contract, with the greatest part of the cover written at Lloyds.

Although it is very difficult, if not impossible, to have anything close to an estimate, since Greek controlled shipping companies operate under several international registrations in addition to   the Greek one, it is estimated that H&M Premium generated by Greek ships is in the region of 500 million USD and there are another 500 million USD generated in regards to P&I, so the Greek Marine Insurance Market represents close to or in excess of 1 billion USD.

Some of the non marine underwriters in this room might then be surprised to hear that the amount of the above premium written in the Local Greek Market is 22 million USD!, according to the 2011 figures of the Hellenic Association of Insurance Companies.

Mr. Cotsalos is certainly in a better position to elaborate on the reasons for that.

Myself, I just like to make the point, which is certainly of interest to the people in this room today, that if we take as a very rough reference the percentage of the Lloyds H&M Market to the world wide one (15pct), and on the assumption that normally no underwriter wants to have a greatest geographical exposure, i.e. Greek H&M insurance does not exceed, on average, the 16 pct of each London underwriters book of business, then, at least 200 million USD premium is coming into the London Market from Greek ships.

If we then add a great part of the P&I premium which is coming into the London Market as P&I Clubs reinsurance, we can then all realise the importance of the business relationship between Greek shipping and the Lloyds Market.

The members of the Hellenic Committee of Lloyds Brokers Associates, who place marine insurance, generate in excess of 150 million USD premium to the London Market, in regards to both H&M and P&I. In spite the fact that the other international markets have during the last 15 years gained a significant share of the Greek marine premium, London, and specifically Lloyds, are still the main market for Greek marine risks.

Thank you.