1. Report on Marine Insurance Premium 1999 and 2000
Tore Forsmo
The Central Union of Marine Underwriters
Oslo, Norway
Thanks also to
Fédération Française des Sociétés
d’Assurances (FFSA) – Direction des
Assurances Transports (DMAT)

2. Key Indicators World Seaborne Trade (2000 : estimates)

3. Key Indicators World Tonnage on Order (as at 1 january 2000, in thousands of dwt)

4. Key Indicators The Most Important Maritime Countries (total dwt tonnage > 20 Mio) (in percentage of world total dwt tonnage, as at 1 january 2000)

5. Key Indicators Maritime Engagement of 10 Major Trading Nations (as at the end of 1999)

6. Report on marine insurance premiums 1999 and 2000
By end of August 2001, 45 of 55 members reported their country’s marine premium figures for accounting year 1999 and 41 in addition for accounting year 2000.
Reported figures represent approx. 95% of the total marine premium written by all IUMI members for 1999 and approx. 93% for 2000
Total premiums for 1999 is estimated to reach approx. USD billion and for 2000 approx. USD billion
You will notice that we this year are presenting last year’s premium figures (although we only have a 78% reporting) in addition to the 1998 premium (95 %)
As I mentioned to you last year, reporting of P&I premiums written by mutual clubs seems still to be a difficulty for some member associations to report
To try to fill in the picture, we have added P&I premiums from mutual clubs in to separate slides

7. Global premiums reported 1999 and 2000
Before we look at the finer details, just a graphic presentation of the lines and totals
The 1999 premiums are not as bad as they look due to shortcomings in the reporting

8. Report on marine insurance premiums (USD billions)
Global premiums (as rep. per end of
August 2001)
Global Hull
Transport/Cargo
Marine Liability
Offshore/Energy
Total
2000
2.605
6.487
1.016
0.719
10.835
1999
2.770
6.805
0.763
0.611
11.045
1998
3.073
7.347
0.879
0.706
12.112
Index 98-99*
89%
92%
87%
91%
Index 99-00*
97%
96%
133%
119%
100%
This table is another representation of the previous graphics I just showed you
We see here premiums from the last three years in addition to indexes
Note that 1999 is incomplete, the total premium volume will be higher than what is shown here
Inexes is however based on those reporting in both years and should fairly accurate describe the situation
Note that Energy is experiencing a tightening, whereas cargo insurance is has gone in the opposite direction
*Index based on figures from Associations who have reported in both years

9. Report on marine insurance premiums - Breakdown by economic areas (USD million)
New this year is the geographical split
The problem with the 1999 figures is that Japan hasn’t been able to provide any figures, which seriously affect the Asia/Pacific region
Fom 1997 to 1998 we see that Europe and North America is slightly increasing their share of the global marine business

10. Global Marine Premium 1992 - 2000 (USD Million)
This is just the historical development over the years CEFOR has collected premium figures on behalf of IUMI
From a peak volume in 1994, there as been an overall drop in four years of approx. 25 %, with global hull being the line with the worst deterioration

11. Global Hull Premium - Major Markets 1992 - 2000 (USD Million)
In this slide we have looked at those markets with a premium volume higher than USD 100 mil in 1998, over the past 7-8 years
Not surprisingly, we see ”the rise and fall of markets”, with some perhaps rising more and falling harder than others ?

12. Global Cargo Premium - Major Markets 1992 - 2000 (USD Million)
The same picture with markets of more than USD 100 million in 1998 over the past 7-8 years
The picture is indeed historically less dramatic than what I just presented for global hull business

13. MARINE MUTUAL MARKET SECTOR STATISTICS Gross Calls (Premium) - Fiscal Domicile
Per accounting year - USD 1000
Fiscal
2000
1999
1998
1997
1996
Difference
00-96
Average Annual
variation over
period 96-00
Bermuda
537,110
584,507
625,503
697,642
778,990
-241,880
-6.21% 1
Japan
103,048
122,224
114,511
122,047
123,428
-20,380
-3.30% 5
Luxembourg
271,508
286,455
299,947
322,618
334,863
-63,355
-3.78% 4
Norway
352,988
362,656
375,778
422,450
427,816
-74,828
-3.50% 3
Sweden
57,424
61,717
77,932
96,092
108,655
-51,231
-9.43% 6 UK
532,040
586,720
591,537
635,415
617,792
-85,752
-2.78% 2 US
30,004
29,221
24,822
30,427
34,618
-4,614
-2.67% 7
Total
1,884,122
2,033,500
2,110,030
2,326,691
2,426,162
-542,040
-4.47%
Ranking
Also new this year is a presentation of premiums from P&I mutuals belonging to the International Group
When IUMI member associations are asked to provide figures for our annual premium statistics, we are also asking for P&I premium from mutual clubs.
Norway is reporting non-member, mutual P&I premiums but what others are doing we don’t know !
Thus this slide !
Note the total premium!
Source: Standard & Poors Marine Mutual Report 2001

14. MARINE MUTUAL MARKET SECTOR STATISTICS Gross Calls (Premium) - Operational location
Per accounting year - USD 1000
Operational
2000
1999
1998
1997
1996
Difference
00-96
Average Annual
variation over
period 96-00
Japan
103,048
122,224
114,511
122,047
123,428
-20,380
-3.30% 3
Norway
352,988
362,656
375,778
422,450
427,816
-74,828
-3.50% 2
Sweden
57,424
61,717
77,932
96,092
108,655
-51,231
-9.43% 4 UK
1,340,658
1,457,682
1,516,987
1,655,675
1,731,645
-390,987
-4.52% 1 US
30,004
29,221
24,822
30,427
34,618
-4,614
-2.67% 5
Total
1,884,122
2,033,500
2,110,030
2,326,691
2,426,162
-542,040
-4.47%
Ranking
The same preiums, only classified according to operational location rather than fiscal reporting;
The difference is actually between Bermuda and the UK
Source: Standard & Poors Marine Mutual Report 2001

15. Report on marine insurance premiums - Accounting year 1999 (in USD 1000)

16. Report on marine insurance premiums - Accounting year 1999 (in USD 1000)

17. Report on marine insurance premiums - Accounting year 1999 (in USD 1000)

18. Report on marine insurance premiums - Accounting year 2000 (in USD 1000)

19. Report on marine insurance premiums - Accounting year 2000 (in USD 1000)

20. Report on marine insurance premiums - Accounting year 2000 (in USD 1000)