Assuranceforeningen Gard
Encyclopedia
Assuranceforeningen Gard is the largest Protection & Indemnity insurer among the thirteen members of the International Group of P&I Clubs, and ranks second in the marine insurance industry behind Allianz
. Its clients include shipowners and operators, shipyards, and companies involved in the upstream oil and gas markets.
The group employs more than 410 people in 11 offices in Arendal
, Athens
, Bergen
, Bermuda
, Gothenburg
, Helsinki
, Hong Kong
, London
, New York
, Oslo
and Tokyo
.
. The establishment of this new marine mutual reflected the historical importance of Arendal
as a shipping centre, but it was also driven by owners of sailing ships’ reluctance to subsidise the liabilities arising from steam operations. Although Gard’s P&I business has its origins from this period, its marine activities can be traced back to as far as 1867 with the establishment of Æolus, which later became part of the Storebrand
group.
With time, the importance of Arendal
as a major Norwegian shipping-hub began to wane and also the Second World War took a heavy toll on the Association’s owners. As a result, by 1945, the Gard’s membership had shrunk severely.
In the post-war period, Gard progressively regained its position as a major P&I Club. This development was characterised by two factors, the substantial growth of the Norwegian national fleet between 1950 and 1970, and the increasingly international nature of the membership. While the Association retains its Norwegian identity, it has become a global P&I club, where less than 30% of the current entered tonnage is Norwegian owned or -controlled.
After having managed If’s marine and energy book for more than three years, the Committee of Assuranceforeningen Gard resolved in October 2003 to purchase this portfolio. The ambition was to create synergies by leveraging the Association’s know-how and scale, and to be able to offer clients a broader scope of products.
Today, with 15% market share on P&I and 6% on Marine, the Gard group is the largest marine mutual in the world and has an A financial strength rating with a stable outlook from Standard & Poor's.
Liability insurance, known as P&I insurance, protects the shipowner against third-party liabilities and expenses arising from the ownership and operation of ships. The insurance is provided through a mutual structure which means that the buyers of the insurance are effectively the insurer.
One of the particularities of the P&I clubs, is that they participate in a claims sharing and collective reinsurance purchasing arrangement through the International Group. The reinsurance programme is the largest in the world and has a capacity exceeding USD 5.5 billion. The arrangement, due to its size and structure, enables the clubs to significantly reduce their risk capital requirements in a cost-effective way. The resulting savings should hence over time be reflected in the premium levels shipowners pay for their P&I cover.
Property insurance covers the assured against losses that may occur to the vessel and her equipment as a result of an accident, while income insurance protects against losses where the ship is wholly or partially deprived of income as a result of it being out of operation. These insurances are provided by Gard on a commercial basis rather than through the mutual organisation. The earnings from this business are therefore retained for the benefit of the mutual members (the buyers of mutual P&I cover).
Mortgage covers are also written for banks and financial institutions. These covers protect policyholder against the perils of non-payment of outstanding loans and interests in “sailing” vessels, i.e., they are not linked to newbuilding projects.
Allianz
SE is a global financial services company headquartered in Munich, Germany. Its core business and focus is insurance. As of 2010, it was the world's 12th-largest financial services group and 23rd-largest company according to a composite measure by Forbes magazine.Its Allianz Global Investors...
. Its clients include shipowners and operators, shipyards, and companies involved in the upstream oil and gas markets.
The group employs more than 410 people in 11 offices in Arendal
Arendal
is a town and municipality in the county of Aust-Agder, Norway. Arendal belongs to the traditional region of Sørlandet.The town of Arendal is the administrative center the municipality and also of Aust-Agder county...
, Athens
Athens
Athens , is the capital and largest city of Greece. Athens dominates the Attica region and is one of the world's oldest cities, as its recorded history spans around 3,400 years. Classical Athens was a powerful city-state...
, Bergen
Bergen
Bergen is the second largest city in Norway with a population of as of , . Bergen is the administrative centre of Hordaland county. Greater Bergen or Bergen Metropolitan Area as defined by Statistics Norway, has a population of as of , ....
, Bermuda
Bermuda
Bermuda is a British overseas territory in the North Atlantic Ocean. Located off the east coast of the United States, its nearest landmass is Cape Hatteras, North Carolina, about to the west-northwest. It is about south of Halifax, Nova Scotia, Canada, and northeast of Miami, Florida...
, Gothenburg
Gothenburg
Gothenburg is the second-largest city in Sweden and the fifth-largest in the Nordic countries. Situated on the west coast of Sweden, the city proper has a population of 519,399, with 549,839 in the urban area and total of 937,015 inhabitants in the metropolitan area...
, Helsinki
Helsinki
Helsinki is the capital and largest city in Finland. It is in the region of Uusimaa, located in southern Finland, on the shore of the Gulf of Finland, an arm of the Baltic Sea. The population of the city of Helsinki is , making it by far the most populous municipality in Finland. Helsinki is...
, Hong Kong
Hong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
, London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
, New York
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
, Oslo
Oslo
Oslo is a municipality, as well as the capital and most populous city in Norway. As a municipality , it was established on 1 January 1838. Founded around 1048 by King Harald III of Norway, the city was largely destroyed by fire in 1624. The city was moved under the reign of Denmark–Norway's King...
and Tokyo
Tokyo
, ; officially , is one of the 47 prefectures of Japan. Tokyo is the capital of Japan, the center of the Greater Tokyo Area, and the largest metropolitan area of Japan. It is the seat of the Japanese government and the Imperial Palace, and the home of the Japanese Imperial Family...
.
History
Assuranceforeningen Gard was founded in 1907, ten years after the first Norwegian P&I club, Assuranceforeningen SkuldAssuranceforeningen Skuld
Assuranceforeningen Skuld is an international mutual marine insurance company based in Oslo, Norway that specializes in protection and indemnity insurance. Total premiums for own account for the 2008 insurance year were USD 190 million...
. The establishment of this new marine mutual reflected the historical importance of Arendal
Arendal
is a town and municipality in the county of Aust-Agder, Norway. Arendal belongs to the traditional region of Sørlandet.The town of Arendal is the administrative center the municipality and also of Aust-Agder county...
as a shipping centre, but it was also driven by owners of sailing ships’ reluctance to subsidise the liabilities arising from steam operations. Although Gard’s P&I business has its origins from this period, its marine activities can be traced back to as far as 1867 with the establishment of Æolus, which later became part of the Storebrand
Storebrand
Storebrand is a financial services company in Norway. By volume, the company's main activities are related to life insurance and pension savings. However, the company also has major divisions working on investments, banking and, since 2006, P&C insurance products...
group.
With time, the importance of Arendal
Arendal
is a town and municipality in the county of Aust-Agder, Norway. Arendal belongs to the traditional region of Sørlandet.The town of Arendal is the administrative center the municipality and also of Aust-Agder county...
as a major Norwegian shipping-hub began to wane and also the Second World War took a heavy toll on the Association’s owners. As a result, by 1945, the Gard’s membership had shrunk severely.
In the post-war period, Gard progressively regained its position as a major P&I Club. This development was characterised by two factors, the substantial growth of the Norwegian national fleet between 1950 and 1970, and the increasingly international nature of the membership. While the Association retains its Norwegian identity, it has become a global P&I club, where less than 30% of the current entered tonnage is Norwegian owned or -controlled.
After having managed If’s marine and energy book for more than three years, the Committee of Assuranceforeningen Gard resolved in October 2003 to purchase this portfolio. The ambition was to create synergies by leveraging the Association’s know-how and scale, and to be able to offer clients a broader scope of products.
Today, with 15% market share on P&I and 6% on Marine, the Gard group is the largest marine mutual in the world and has an A financial strength rating with a stable outlook from Standard & Poor's.
Shipowners and operators
The business unit, which is the largest source of premium volume, provides liability-, property- and income insurances to shipowners and operators.Liability insurance, known as P&I insurance, protects the shipowner against third-party liabilities and expenses arising from the ownership and operation of ships. The insurance is provided through a mutual structure which means that the buyers of the insurance are effectively the insurer.
One of the particularities of the P&I clubs, is that they participate in a claims sharing and collective reinsurance purchasing arrangement through the International Group. The reinsurance programme is the largest in the world and has a capacity exceeding USD 5.5 billion. The arrangement, due to its size and structure, enables the clubs to significantly reduce their risk capital requirements in a cost-effective way. The resulting savings should hence over time be reflected in the premium levels shipowners pay for their P&I cover.
Property insurance covers the assured against losses that may occur to the vessel and her equipment as a result of an accident, while income insurance protects against losses where the ship is wholly or partially deprived of income as a result of it being out of operation. These insurances are provided by Gard on a commercial basis rather than through the mutual organisation. The earnings from this business are therefore retained for the benefit of the mutual members (the buyers of mutual P&I cover).
Shipyards
The Gard group also provides covers for Marine Builder’s Risks. This provides cover for the shipbuilding industry against the risks of building vessels (from “keel laying” to delivery) and for conversion projects. A range of covers related to the newbuilding process, such as towage, delay in delivery, non-delivery also fall under this business unit.Mortgage covers are also written for banks and financial institutions. These covers protect policyholder against the perils of non-payment of outstanding loans and interests in “sailing” vessels, i.e., they are not linked to newbuilding projects.