We are pleased to announce our summary of financial statements for the 2024 business year, which covers 1 April 2024 to 31 March 2025.

In the 2024 business year, the Japan P&I Club strategically focused on three key priorities. These were: 1) recovery of entered tonnage, 2) improvement of income and expenditure, and 3) optimisation of personnel and organisational structure. These areas were prioritised in order to provide high-quality insurance services to our Members, underpinned by a strong financial foundation and stable operations.

2024 was marked by ongoing geopolitical risks in Ukraine and the Middle East, as well as growing uncertainty in the international economic environment due to policies implemented by new administration in the United States, particularly those related to tariffs and measures significantly affecting marine transportation.

The shipping market remained strong, with bulkers and tankers maintaining high rates mainly due to alternative crude oil shipments to Europe, even after the resolution of the Panama Canal drought issue. Container vessels also saw continued rate increases, driven by deteriorating voyage conditions, steady demand to North America, and last-minute shipments in anticipation of US tariffs. However, the outlook remains increasingly uncertain.

Thanks to the high-quality ship management of our Members, no ocean-going vessel entered with the Club was involved in a claim exceeding the Club’s IG retention in the 2024 policy year. Additionally, there were no claims on Naiko Class entries (Japanese coastal vessels) that would trigger reinsurance, i.e., claims exceeding JPY300 million.

In the P&I insurance industry, there was a noticeable increase in large claims across the International Group of P&I Clubs (IG). Pool claims reached a near-record high, mainly due to big claims such as the bridge collapse incident in Baltimore, USA.

Under various risk scenarios, we have further improved our insurance balance, and maintained and strengthened our solid financial foundation, in order to continue providing stable insurance cover over the long term.

As a result, the ordinary surplus for the 2024 business year amounted to JPY6.97 billion, a decrease of JPY2.38 billion compared to the 2023 business year. The net surplus after tax stood at JPY4.95 billion. The combined ratio, including foreign exchange fluctuations within the claims reserve, stood at 69.2%, reflecting our strong underwriting performance. The main financial results are as follows:

Premium Rates

Considering the rising trend in claims payments driven by global inflation and growing uncertainties related to natural disasters and geopolitical risks, a continuous improvement in the balance of insurance income and expenditure is necessary to ensure the Club’s stable and sustainable operation. Accordingly, a general increase of 7% was applied for ocean-going owners’ entries and Charterers' entries at the renewal for the 2025 policy year. For Naiko Class entries, premium rates were left unchanged, in consideration of the rate increases over the past three years and the absence of major accidents.

Net insurance income the 2024 business year decreased by JPY2.26 billion to JPY22.59 billion. Insurance income was JPY31.56 billion, a reduction of JPY1.87 billion from the 2023 business year. Reinsurance premiums increased by JPY390 million to JPY8.97 billion.

Investment Income

Investment income decreased by JPY6.15 billion to JPY1.89 billion. This includes foreign exchange gains of JPY170 million, a decrease of JPY4.27 billion from the 2023 business year; and a gain of JPY300 million on money held in trust, compared with JPY2.03 billion in the 2023 business year; and interest and dividend income of JPY1.42 billion.

Insurance Claims

The Club had no pool claims, in other words exceeding the IG Club retention amount of USD 10 million, for ocean-going owners’ entries, and no claims exceeding JPY300 million for Naiko Class entries (Japanese coastal vessels), thanks to our Members’ ongoing appropriate vessel management and safe navigation. As a result, insurance claims payments decreased by JPY5.04 billion to JPY28.34 billion, while reinsurance recoveries decreased by JPY4.95 billion to JPY12.14 billion. Net insurance claims payments decreased by JPY90 million to JPY16.19 billion.

Net Assets

Net assets increased by JPY5.05 billion from the 2023 business year, reaching JPY28.68 billion.

Reserve

As a result of the above, we have achieved a significant increase in the reserve, which is an indicator of financial soundness, by JPY5.73 billion from the 2023 business year to JPY41.10 billion.

The income and expenditure account is summarised below.