Leaders of one of the biggest specialist mutual insurers in shipping and transport services have rejected any talk of going private, writes James Brewer.

Directors of the International Transport Intermediaries Club said after their last meeting they felt it right to sound out whether to demutualise or not, as this was a hot topic in the sector.

Chairman Paul Vogt, of shipbroker Vogt & Maguire, said there was no demand from the membership for such a transition. The club continued in extremely good health, and thus free from additional premium calls.

The club provides liability cover and advice for 1,200 agents, brokers and managers, ranging from household names to niche operators.

Board members decided that for a fifth year, renewing members would in 2001 receive a discount. The precise level of the "continuity credit" will be decided at the March 2001 board meeting.

To date, such credits have ranged up to 25%, and amounted to the return of $11m in premium to members, said Tony Payne of club managers Itim, a subsidiary of Thomas Miller & Co.

Free reserves at the club have risen to some $17.5m, equivalent to around one year¹s total premiums.

"With mutuality, the profits go back to the members rather than a third party insurer," said Mr Vogt, "and members' claims are treated sympathetically by peers".

Simon Morse, chief executive of Inchcape Shipping Services and the president of the Institute of Chartered Shipbrokers, told the conference that agents could shed the label of being the Uriah Heeps of shipping, through a fundamental transformation.

Lloyd's list, October 3, 2000

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