The proposed merger of two of Britain’s best known P&I clubs, North P&I Club and Standard Club, has been given the go-ahead following a vote at separate member meetings on Friday.
The two clubs announced their intention to merge in March, with initial voting among members being overwhelmingly in favour of the combination. The merger will create one of the largest providers of mutual cover in the maritime industry, with consolidated annual premiums of around $750m.
Standard’s CEO Jeremy Grose and his counterpart at North, Paul Jennings, are set to work as joint CEOs of the rebranded NorthStandard, with management confident the new P&I powerhouse can be up and running by February next year.
“NorthStandard will bring together two unique advocates of mutuality working within the International Group of P&I Clubs, whose complementary cultures, ambitions and approaches would work together to deliver added value for all members,” said Grose.
“North members expressed overwhelming support for the merger based on the tangible benefits for shipowners that the consolidation will bring,” added Jennings. “Members welcomed the proposal on the grounds that it would reinforce stability and strengthen competition in the P&I sector and encourage innovation and drive further product diversification.”
Speaking with Splash earlier this month, both CEOs were keen to stress that the two parties entered merger talks on an equal capital footing, dismissing speculation that the deal was in fact a North takeover. Together, the clubs take care of insured tonnage of around 400m gt.
The merger remains subject to the approval of all the appropriate regulatory authorities.