The new year could start with a bang as two of the world’s largest marine insurance providers contemplate merging to form a single company. North P&I Club and Sunderland Marine Mutual Insurance (SMMI) have already signed a merger agreement and are waiting for their shareholders to approve the deal, which would finalize in 2014.
Both companies are based in northeast England, and both have been in operation for over 100 years. Both have offices spread throughout the world, including Asia and North America. Together, the two insurance companies bring in about $600 million per year and employee about 400 people—most in the United Kingdom. The two entered into a strategic alliance in 2012 and now hope to make that relationship official with a merger.
Paul Jennings, North’s joint managing director stated that the merger will allow the companies to offer their clients a more divorce range of insurance products and policies, while at the same time increasing the two companies’ capacity. In addition, the new company will be able to take on greater risk while providing their policyholders with greater security.
Jennings added that the merger would “enhance our joint competitive position” in the marine insurance industry, while enhancing financial stability for policyholders.
Finally, Geoff Parkinson, SMMI’s chief executive stated that the merger would mean that the new company would have a more skilled and diverse group of experts working to provide better services and products to their clients.
Are you filing a claim with a marine insurance company? Contact Voss Law Firm with your questions and concerns: 888-614-7730.