Marine insurer to create 60 jobs at expanding HQ

Sep 21 2009 By Christopher Knox, The Journal

ONE of the world's biggest marine insurance firms believes it can create around 60 jobs at its Tyneside headquarters and grow its turnover by a third to £240m.

Newcastle-based North of England P&I Association is entering a new chapter in its 149-year history which sees its managing director Rodney Eccleston step down after 21 years to make way for his deputies Alan Wilson and Paul Jennings to take on a joint leadership role.

The pair have big plans for the business and are already overseeing a major expansion plan that will see the company add 15,000 sq ft to its 25,000 sq ft head office on the Quayside.

The firm, which insures 10% of the world’s shipping fleet, said that the £7m expansion will mean adding 60 staff to its 170-strong North East workforce to help meet its target of growing its turnover by a third to £240m in five years.

It saw annual sales grow from £154m to £180m in the 12 months to February 2009 as it wins business in more countries, particularly in the Far and Middle East. It is now aiming to grow its global market share from 10% to 12.5% by 2014.

The firm is also in the process of setting up an office in Japan to tap into the country’s booming fishing market. It currently insures 95 million tonnes of the world’s ships as part of a global fleet of 3,750 ships and is aiming to reach 102 million tonnes by next year.

Mr Jennings said: "We are confident that we can create a significant number of jobs on the Quayside as we continue to grow our share of the market."

However, the firm, which also has offices in Hong Kong, Greece and Singapore, did say that its investment income had been dented by the global recession, with returns totalling around £20m compared to £27m last year.

But it believes its position as only one of 13 mutuals around the world which provide this type of insurance should help it to come out of the recession relatively unscathed.

Mr Jennings said: "The world economy slowing down has had very little effect on us, investment income aside.

"We are now looking towards Asia for future growth and are looking forward to be creating jobs here in the North East on the back of it."