Skuld, a leading marine insurance provider, ended the first nine months of the 2017/18 reporting year (as at 20 November) with a positive bottom-line result of USD 27 million (up 68.7%, from USD 16 million year-on-year) with the contingency reserve standing at a record high of USD 421 million (up 15.6%, from USD 364 million year-on-year).
Ståle Hansen, Skuld president and CEO, said: “The first nine months have been challenging for some of our members who have experienced major losses. The number of small claims is low, but after nine months Skuld has experienced a few large claims and one confirmed pool claim. Hurricanes Irma and Harvey also had an impact on Skuld’s loss estimates although the effect has been limited compared with other insurers in the market.
“It is important for Skuld to embrace such challenges as an opportunity to show what our club is all about: first-class service and competence which our members can rely on. Our highly experienced claims teams provide high-quality service when it is crucial for our members.
The major claims were partly offset by the positive contribution from Skuld’s commercial operations. At the end of the third quarter the technical result amounted to USD -13 million with an overall combined ratio of 104%.
Hansen added: “Skuld’s diversification strategy continues to reduce our volatility and has contributed positively to the bottom line for the past 10 years. The commercial activities delivered a combined ratio of 92%. Skuld’s strong financial performance enables us to show our commitment to our mutual members by giving something back. The mutual members’ credit was approved at the Annual General Meeting and the credit of 2,5% was given back to all mutual members on the November payment instalment.”
Net investment income ended at USD 40.2 million with an investment return of 5.6%, mainly driven by strong equity markets and lower interest rates. Skuld’s long-term conservative investment strategy, with a majority in low-risk bonds, remains unchanged and will reduce volatility and ensure sufficient capital for sustainable growth in the future.
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Skuld is a world leading marine insurance provider with a strong financial position and an ‘A’ rating with Standard & Poor’s. We cater to the needs of shipowners, the offshore and energy sector, charterers and traders, ports and terminals, cargo and the superyacht community.
Skuld was established in 1897 as a P&I club for Scandinavian shipowners. Since then, we have grown into a diversified marine insurer and now offer bespoke covers through Skuld P&I, Skuld SMA and Skuld 1897, a syndicate at Lloyd’s.
With headquarters in Oslo and a worldwide office network of around 270 highly skilled employees, we provide our members and clients with service and competence they can rely on, 24 hours a day.
Skuld was the first member of the International Group of P&I clubs to publish six-month and nine-month results in addition to its annual review, and has done so since 2003.
Transparent, clear and precise communication with members, clients and brokers, the general public and the media is a priority for Skuld. Our objective is to ensure that all information that is made available by Skuld is accurate and relevant, and we continuously develop our communication with stakeholders.