Gard Protection & Indemnity (Bermuda) Ltd reported the strongest capital position among the world’s leading protection and indemnity clubs, as the sector grappled with weaker underwriting performance over the past year.

According to a new report from AM Best, Gard’s Bermuda operation held free reserves of $1.57 billion in 2024-25, the highest level among members of the International Group of P&I clubs. The company also reported a Solvency II capital coverage ratio of 326 per cent, the strongest in the group.

The International Group, known as the IG, is a collective of 12 mutual insurers that together cover about 90 per cent of the world’s ocean-going tonnage. The clubs provide protection and indemnity insurance, covering shipowners for liabilities such as injury, pollution and cargo damage. The IG also purchases a large shared reinsurance programme, making it an important part of the global marine reinsurance market in which Bermuda plays a significant role.

Despite strong capital growth, underwriting performance across the IG deteriorated in 2024-25. The group reported a combined underwriting loss of $353 million and a combined ratio of 108 per cent, meaning its claims and expenses exceeded premium income.

However, AM Best said investment returns offset those technical losses, allowing most clubs to post overall profits and pushing total free reserves across the group to nearly $6 billion.

Clubs have announced general premium increases of between 5 and 8 per cent for the February 2026 renewal, marking the seventh consecutive year of rate rises as they seek to restore underwriting balance amid rising claims costs and volatility.