North P&I has entered into negotiations for merger with insurance company Standard Club to create a new global marine insurer.
The combined company is expected to become one of the largest mutual cover providers in the maritime sector.
It will have the ability to address challenges related to recruitment, regulation, digitalisation, as well as sustainability, according to North P&I.
The merged entity is said to provide cover for vessels equivalent to 400M GT.
Standard Club CEO Jeremy Grose said: “Standard Club and North now have the opportunity to create one of the world’s leading and most influential P&I clubs, founded on exceptional service and innovation, a broader diversified product range, scale economies and global reach.
“The merged club would maintain an unwavering commitment both to member service and to the International Group system and offer marine insurance products, services and solutions relevant to the broadest range of shipowners worldwide.”
Grose said that the technical insight of the combined group would allow it to serve shipowners’ changing needs.
North P&I chairman James Tyrrell said: “With stronger financial resilience, the newly created club would be well-positioned to thrive in all conditions.”
Furthermore, the capital strength of the combined business is said to enable “significant reinvestment” in more customised and sustainable solutions and innovative technology.
Standard Club chairman Cesare d’Amico said: “The ambition behind the merger is to deliver tangible benefits to shipowners. The boards of both clubs have played a key role in guiding and shaping the proposal.
“Combining will provide greater financial resilience, efficiency and an even deeper pool of talent to maintain and strengthen the focus on service excellence and close member relationships for which both clubs are renowned.”
The proposed merger has already secured green light from the two companies’ boards. It now awaits the nod of regulators and the full mutual membership of both clubs.
Member voting is scheduled in May, with the deal expected to conclude by 20 February 2023.
Currently, a joint North and Standard Club working group is exploring how the merger would maximise value for members.