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The Shipowners’ Club reports business growth

The Shipowners’ Club, the leading mutual P&I insurer in the smaller and specialist vessel sector, has reported resilient results for the year ending 31 December 2018.

The Club has reported a combined ratio of 104.2%, which was slightly better than the budgeted 105%. Tonnage increased by 6.9% to 27.3m tonnes and insured vessel numbers increased by 3.5% to 34,094. There was a a reduction in capital and free reserves of US$ 37.9m, taking net assets to US$ 303.8m.

Financial summary

  • Combined ratio 104.2% (2017: 99.1%)
  • Capital and free reserves US$ 303.8m (2017: US$ 341.7m)
  • Earned premiums, net of reinsurance US$ 195.0m
  • Incurred claims US$ 151.0m
  • Underwriting deficit US$ 8.2m
  • Investments returned an overall deficit of US$ 29.7m (net of tax)
  • Entered vessels 34,094 (2017: 32,932)
  • Gross tonnage 27.3m (2017: 25.5m)

Chairman Philip Orme announcing the results highlighted that “the Club anticipated the difficult trading conditions that continue for many of our Members and, in the spirit of mutuality, chose to budget for a small underwriting deficit, rather than seek additional premium from Members. Whilst the underwriting deficit and the negative investment yield reduced the Club’s net assets, the Club remains well capitalised. It has been pleasing to note that the first quarter of 2019 has seen an upturn in investment markets to the extent that the Club has substantially recovered the 2018 investment deficit.”

Simon Swallow, Chief Executive, commented “the Shipowners’ Club has seen growth in vessel numbers, tonnage and Member numbers during 2018, which is a tremendous reflection of the faith that our Members and their brokers place in the Club. At a time of some considerable insurance market uncertainty our Members can be assured of a high commitment to service. Our Members are insured by a well-capitalised Club which has a long-standing track record of being ready to stand by them when claims arise.”

The Shipowners’ Club Annual Report 2018

Source: The Shipowners’ Club

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