American Hellenic Hull Insurance Company (AHHIC), the new marine insurance company formed by the American P&I Club’s alliance with Hellenic Hull Management, has enjoyed a highly successful first six months of operation.

Since gaining its license as a Solvency-II compliant insurer from regulators in Cyprus on June 24th 2016, AHHIC has already provided cover for 1,000 vessels managed from Europe, the Americas and Asia. The company’s remarkable initial success underlines its ability to become a global player in the marine hull market as well as industry recognition of AHHIC’s backers and managers.

Ilias P. Tsakiris photo from London 9/12/2016

“At the American Club we are very proud of the company and I am happy to say that American Hellenic is performing even better than we expected”, said Vincent Solarino, Chairman of the Board of Directors of AHHIC and President and COO of Shipowners Claims Bureau, managers of the American Club.

The company recently updated key markets on its initial progress with presentations made at the Piraeus Marine Club in Greece and at Trinity House in London, UK. The events were attended by a total of more than 500 professionals who were briefed on the company’s underwriting activities and marketing initiatives to date as well as its financial standing and key management policies.

Among key aspects of AHHIC’s approach that were discussed during the events were its commercial strategy to ensure healthy premium levels, the company’s exceptionally high standards of governance and transparency, and its strong reinsurance cover. The company writes Hull and Machinery business of up to $10m per risk and war risks up to $50m.

The capital strength of AHHIC is one of its greatest assets and the company has a Solvency II capital ratio of 211% at December 2016. Its status is already equivalent to a ‘BBB’ credit rating and the company aims to shortly have its own credit rating from a reputable international agency.

Photo from Piraeus Marine Club 7/12/2016

“American Hellenic is off to a great start,” said AHHIC CEO and Chief Underwriter Ilias Tsakiris. “We will continue to work hard, so as to stand by shipowners and insurance brokers in these volatile market times. Our growing global presence underlines our commitment to the industry.

“We are offering excellent service and trusted insurance coverage with beneficial synergies for their fleets,” said Mr. Tsakiris. “The response in these first six months shows that the market appreciates what American Hellenic has to offer.”

synergies for their fleets”.

American Hellenic Hull is a private marine insurance company, which covers Hull and Machinery risks. It is 100% owned and financially backed by the American P&I Club and exclusively managed by Hellenic Hull Management. The company is registered in Limassol, Cyprus and has also affiliated offices in Piraeus, New York, Houston, London, Shanghai and Hong Kong. Its operations commenced on 1st July 2016. American Hellenic Hull is the first marine insurance company licensed in Cyprus under the Solvency II regime requirements. The Solvency II Capital Requirement reflects the economic capital to be held by an insurance undertaking in order to ensure that ruin occurs no more often than once in every 200 cases or, alternatively, that this undertaking will still be in a position, with a probability of more than 99,5%, to meet its obligations to policy holders and beneficiaries over the following 12 months. American Hellenic has successfully passed all additional financial and operational Stress Tests required by the Solvency II regime and holds economic capital to meet its projected obligations to policy holders and beneficiaries over the following 36 months thus securing a triple level of protection to its policy holders.

Panoramic photo from Trinity House 9/12/2016

SOLVENCY II

EU insurance legislation unifies a single EU insurance market and enhances consumer protection. The third-generation Insurance Directives established an “EU passport” (single license) for insurers to operate in all member states. Solvency II is a fundamental review of the capital adequacy regime for the European insurance industry. It has established a revised set of EU-wide capital requirements and risk management standards that replaced the previous solvency requirements. Solvency II aims to achieve consistency across Europe and includes the following key ideas: market consistent balance sheets, risk-based capital, own risk and solvency assessment, senior management accountability, supervisory assessment.

Source: American Hellenic Hull Insurance Company (AHHIC)