Steamship Mutual Financial Update and 2022/2023 Renewal
At their Board Meeting held on 23 May 2022, the Directors of Steamship Mutual approved the Clubs’ Report and Accounts for the 2021/22 policy year and authorised publication of the following key points in advance of the release of detailed results.
2021/22 Financial Year Highlights
• All figures in this report reflect Steamship’s combined position.
• Owned tonnage at 20 February 2022 was 110 million GT, a 14.8% increase over the previous year.
• Total entered tonnage, including chartered, was 195 million GT as at 20 February 2022.
• As at 20 February 2022, Free Reserves stood at US$ 473 million, from US$ 511 million the previous year, and in excess of the S&P AAA rating level.
• An overall 11.76% increase was achieved on renewing owned business.
• International Group Pool and Covid claims adversely impacted the combined ratio of 112.7%; the average combined ratio for the last six years is 105.3%.
• Investments recorded a loss of US$ 2.8 million.
The combined financial position of the Steamship Mutual Group will be published in June but the Directors noted an improvement in underwriting performance, even though premium income was insufficient to meet higher than projected Pool claims. Covid related claims, and premium reductions as a result of reduced activity, also affected the underwriting outcome.
The Board decided upon a 12.5% general increase. Mutual premium, including the value of adjusted terms, increased by 11.6%. At renewal, approximately 9.5 million GT of new mutual business was entered and after adjusting for tonnage which did not renew, the net increase was 5 million GT. This new tonnage was drawn from a wide range of areas including China, Greece, Japan, Norway, Denmark, Cyprus, USA and Hong Kong. The Managers are very grateful for the confidence in Steamship, which these entries reflect.
The Club Chairman, Mr Armand Pohan, commented:
“The financial year was a challenging one for the Club, but the year-end outcome is positive.
Pool claims in the early part of the year were being reported at very high levels and the pandemic still had an adverse impact on our Members’ operations. But as the year progressed the claims outlook improved, particularly in the last quarter.
Despite a downturn in investment markets the Club’s Free Reserves remain very strong and the increase in entered tonnage and Membership is most welcome.
We never like having to increase premium ratings, but the underwriting position will, of course, be enhanced by such action.
As always, the Club’s health and success depends upon, and is a reflection of, our Members’ commitment and loyalty. And, as always, we will do our best to ensure that our Members’ confidence in the Club is justified.”
Source: Steamship Mutual