Korea P&I Club's conservative investments support stability

KP&I has implemented general premium increases.

Korea P&I Club’s (KP&I) underwriting profitability for the year could be restrained, thanks to the large losses incurred in the first half of the year. Although KP&i’s overall risk exposures to potential high-severity losses have reduced materially since 2023, following the underwriting restructuring, AM Best said.

KP&I’s operating performance is considered adequate, with recent efforts to improve underwriting fundamentals. KP&I has implemented general premium increases, strengthened underwriting practices, and reduced the number of large-size vessels insured. These measures led to a slight improvement in underwriting performance in 2023. 

The ratings reflect KP&I’s strong balance sheet, which is supported by its robust risk-adjusted capitalisation, assessed at the strongest level by Best’s Capital Adequacy Ratio (BCAR). 

This strength is bolstered by the KP&I’s low underwriting leverage and conservative investment portfolio, though it is partially offset by a small capital base that could be vulnerable to volatility from large claim losses and limited financial flexibility.

KP&I holds a relatively small share of the global P&I market, primarily focusing on small-to-medium-sized vessels within South Korea. KP&I also leverages its local expertise and strong relationships with South Korean shipping companies to maintain a stable domestic presence.