The marine insurance mutual saw premium income grow substantially to $938m (£697.1m)

Conflicts in the Middle East, Persian Gulf and Ukraine are creating a more challenging world for shipowners, one of world’s largest insurers in the sector has said. Tyneside-based NorthStandard says changing tariffs and expansion of sanctions have created uncertainty in the global market.

It comes as the Newcastle-based mutual has published what it called strong results showing a 5.8% lift in premium income to US$938m (£697.1m) in its 2025/26 year with an underwriting deficit reduced from $96m (£71.3m) to $39m (£28.9m). The provider of third party liability and related cover to shipowners and operators also reported $123m (£91.4m) growth in free reserves to $923m (£686.2m).

Writing in the membership group’s annual review, NorthStandard chairman Cesare d’Amico said: “Conflict in the Middle East from Gaza to the Persian Gulf, the continuation of the war in Ukraine, the uncertainty caused by changing tariffs, and the steady expansion of sanctions regimes all combined to undermine predictability in trade, compliance and insurance. Shipowners faced higher costs, greater operational disruption and a more complex liability landscape, often driven by events entirely outside their control.”

It is now three years since the merger of Newcastle’s North P&I and London-based The Standard Club to create NorthStandard, which is one of the top global marine insurance providers with offices in Europe, Asia and the Americas. The firm employs about 300 people on Tyneside.

Bosses said the objectives of that merger had now been met, including development of specialty lines, opening of new offices, expanded resources and new partnerships to benefit members. Since the merger, growing geopolitical instability – notably events in the Strait of Hormuz – has rocked the shipping world, with NorthStandard saying it has provided vast amounts of guidance to members, particularly around war risks.

And on sanctions, the club said it has invested to create a stronger service for members including the appointment of a head of sanctions who operates on a global level from the Newcastle offices.

During the year, NorthStandard also consolidated its Coastal & Inland and Sunderland Marine teams under one leadership, offering a ‘one stop shop’ for small and specialist craft. It also set up an Upstream Energy and Marine & Energy Liabilities team to target those markets.

Jeremy Grose, NorthStandard managing director, said: “The shipping industry is navigating profound change, as technological advancement and the fuel transition reshape how vessels are operated, crewed, and maintained. Our services are evolving in step, ensuring Members can adopt new fuels, technologies, and operating models with confidence.

Fellow managing director, Paul Jennings, added: “People are our biggest strength, and our strong performance is a direct reflection of their dedication—many of whom are based right here at our headquarters in the North East. We remain deeply committed to supporting our communities, economy, and environment through strategic, long-term collaboration and investing in our people and innovation”.