The Shipowners’ Club reports modest underwriting surplus at the half year point
The Shipowners’ Club, the leading P&I insurer in the smaller and specialist vessel sector, has reported financial results for the six months ended 30 June 2022
The Club has reported a combined ratio of 96.2% which was in line with budget. The underwriting result of a US$ 4.3m surplus has been driven by 8% growth in earned income compared to the first half of 2021 and a 2% reduction in overall claims costs. These positive variances have been sufficient to more than absorb higher expected costs in the areas of reinsurance (due to a hardening market) and operating expenses (as we emerged from COVID-19 lockdowns). The Club remains well capitalised at 30 June with US$ 335.5m of net assets and this is reflected in the Club’s A (stable) credit rating from Standard & Poor’s.
- Underwriting surplus US$ 4.3m (June 2021: deficit US$ 0.9m)
- Combined ratio 96.2% (June 2021: 100.9%)
- Gross earned premiums US$ 129.5m (June 2021: US$ 119.7m)
- Total Members 8,262
- Capital and free reserves US$ 335.5m (December 2021: US$ 396.4m)
The Club is pleased to report a 99% retention rate at the 20 February 2022 renewal. Furthermore, the Club’s measured growth has resulted in gross earned premium at the half year point being US$ 9.8m up on 2021.
Simon Swallow, Chief Executive commented: “The Club sits in a healthy position at the half year stage. Whilst investment returns have been impacted by ongoing global uncertainty, the underwriting result remains cautiously encouraging, notwithstanding the impact of inflation which we monitor closely. Whilst the frequency of COVID-19 claims may have abated, we are starting to see an increased frequency in other claims, testimony to the fact that, encouragingly, Members’ operations are starting to pick up post-pandemic. We thank our Members and their brokers for the continued trust they show in the Club.”
Source: The Shipowners’ Club