Members of North P&I and Standard Club have approved plans to create a new global marine insurance entity.
The combined insurer is anticipated to be one of the largest providers of mutual cover in the maritime space.
Last week, both North P&I and Standard Club members approved the merger, which will allow them to establish NorthStandard as a single mutual insurer by 20 February 2023, which is next year’s renewal date.
NorthStandard is expected to have consolidated annual premiums of around $750m.
Standard Club CEO Jeremy Grose and North P&I CEO Paul Jennings will jointly lead the new marine insurer.
Grose said: “NorthStandard will be a major new force in marine insurance, delivering the resilience members need from their P&I partners to meet the challenges and competitive landscape of a changing shipping world.”
“For the merger to proceed, it was critical that we secured their recognition of the proposal’s positive outcomes for continued service excellence, as well as the opportunities brought by diversified product lines, scale economies and global reach.”
The merger was first announced earlier this year and is yet to receive regulatory approval.
Jennings said: “North members expressed overwhelming support for the merger based on the tangible benefits for shipowners that the consolidation will bring. Members welcomed the proposal on the grounds that it would reinforce stability and strengthen competition in the P&I sector and encourage innovation and drive further product diversification.
“A larger organisation will also attract and retain even more of the best talent to ensure that NorthStandard delivers the highest levels of service and support for members.”