News 23 Dec, 2019 Group Reinsurance Rates 2020/2021 The arrangements for the renewal of the International Group General Excess of Loss (GXL) reinsurance contract and the Hydra reinsurance programme for 2020/21 have now been finalised. These include the Collective Overspill Cover, Excess War Risks P&I cover and MLC cover. Download PDF Following the structural changes made in 2019/20 year (which also saw co-brokers being appointed), the Group’s Reinsurance subcommittee decided not to make significant changes this year. Whilst the US$2 billion excess of US$100 million commercial market element of the placement has been confirmed for two years, which will allow a degree of future premium stability, Hydra’s participation on the placement continues to be meaningful. Therefore, the Reinsurance Sub-committee has decided to set rates for the 2020/21 policy year only. The cost of Hydra’s participation for the 2021/22 year will be assessed in 12 months’ time and any rate adjustment for the 2021/22 rates will be applied at that time. For 2020/21 Group Reinsurance rates for owned entries per GT will be as follows: Tonnage category 2020 rate per GT Persistent Oil tankers $0.5747 Clean Tankers $0.2582 Dry $0.3971 Passenger $3.2161 These rates will be charged as part of the 2020/21 Mutual call rates and will be split evenly across all instalments. Hydra participation Hydra continues to retain 100% of the Pool layer US$30 million – US$50 million and 92.5% of the Pool layer US$50 million – US$100 million. In addition, Hydra will retain a US$100 million AAD in the 70% market share of the GXL programme. MLC cover The US$200 million (excess of US$10 million) market reinsurance cover will be renewed unchanged for a further 12 months from 20 February 2020. That renewal has also been achieved at a competitive cost, which has been included within the overall reinsurance cost. War cover The excess War P&I cover will be renewed for 2020 for a period of 12 months, with the costs includ