Standard reports strong 2021/22 ahead of North merger
The Standard Club, a leading shipping protection and indemnity mutual insurer, has published its Annual Report 2022, revealing a significant improvement in its combined ratio.
In 2021/2022 the club achieved a combined ratio of 105% on premiums of $294m, compared with a 2020/21 ratio of 121%.
A defensive investment strategy limited the impact on the club’s finances, with a return on investments dropping to -1.2%. The club’s free reserves are still well in excess of regulatory requirements and stand at $310m.
On 27 May approval was given by members to merging Standard Club with North to create a market-leading global marine insurer and one of the largest providers of mutual cover in the maritime industries.
Commenting on the results, Chief Executive Jeremy Grose said:
“We are a well-diversified club with a robust performance across all our divisions. This report coincides with our member agreed transition to NorthStandard. I am delighted that these positive results will significantly contribute towards a new, strong combined club which is able to deliver a broader range of services, offer greater innovation and even stronger financial resilience.”
“The improvement in our combined ratio is thanks to our strategy of attracting carefully selected tonnage from international shipping centres, despite 2021/22 being a heavy year for pool claims. 2022/23 looks set to be another successful year and we are pleased to see the good progress of our Coastal & Inland business in Asia which launched earlier this year.”
Standard Club and North are now working to secure the necessary financial, regulatory and merger control approvals, with a view to completing the formal corporate merger on 20 February 2023.
As of 20 February 2022, overall tonnage stood at 158m gross tons, having grown by 11m on the previous year. Premium and call income are forecast to be $350m in the new financial year.
Source: Standard Club