Home / Shipping News / Marine Insurance P&I Club News / Skuld delivers strong result in 2023/24

Skuld delivers strong result in 2023/24

Skuld is pleased to announce a financial result of USD 126 million for the year ended 20 February 2024, with a positive technical result of USD 60 million. The technical result improved by USD 45 million, resulting in a net combined ratio of 86%.

Driven by a strong renewal with increased rates and new vessels entering Skuld during the year, significant premium growth was seen in both mutual and commercial lines of business, contributing to gross earned premiums and calls at USD 527 million.

Ståle Hansen, Skuld president and CEO, said: “Despite a dramatic year with significant geopolitical challenges and financial volatility impacting international shipping and trade, I am pleased to report that Skuld has delivered an historically strong result. This demonstrates our ability to deliver top-line growth and a solid bottom line, allowing us to balance both a return to members and to retain sufficient capital for volatility and our growth ambitions ahead.”

The financial year was characterised by a benign claims environment within P&I, particularly the mutual line of business. The physical damage line of business was affected negatively by increased competition and a heavier claims environment. Net claims incurred ended at USD 278 million, compared with USD 287 million in 2022/23. The international group (IG) pool cost affected the total claims cost with USD 24 million, a reduction of USD 5 million from 2022/23. Skuld reported no new pool claims this year.

The gradual improvement of the technical result in the mutual book of business continued in 2023/24. Based on the strong contributions this year, a premium credit (members’ credit) of USD 10 million will be returned to Skuld’s mutual members for the policy year 2023.

High treasury yields and expectations towards more AI-driven technology caused strong positive contributions from fixed income and equities. Total investment income, including fair value changes through other comprehensive income (OCI), ended at USD 75.5 million for 2023/24 with an investment portfolio return of 7.2%.

Total tax expenses, including tax on other comprehensive income, amounted to USD 9.3 million, mainly driven by the positive results in the Norwegian Association.

Skuld’s financial and solvency position is robust, and the contingency reserves now stand at USD 551 million, leaving Skuld well-capitalised and equipped for future growth. Skuld remains well above all regulatory solvency requirements and is aligned with its own stricter internal solvency targets set by the Board.

For the first time, Skuld reported on the Poseidon Principles for Marine Insurance on the H&M portfolio as well as disclosing the Scope 3 emissions on its mutual P&I and H&M portfolios, ensuring transparency both in mutual and commercial product lines in the global pursuit of reaching the UN’s sustainable development goals.

Hansen added: “Sustainability and ESG are at the core of Skuld’s strategy. This year, I am very pleased to report on our emissions on both mutual P&I and H&M business portfolios, ensuring that Skuld is fully committed to assisting our members and clients in reaching the sustainability goals set by the UN.

“I extend my heartfelt thanks to the Skuld team. Their dedication and professionalism are the foundation of Skuld’s strength. Together, we are making a difference in the marine industry, and rest assured, we are genuinely excited about the journey ahead.”
Source: Skuld

Recent Videos

Hellenic Shipping News Worldwide Online Daily Newspaper on Hellenic and International Shipping