2018 Management Highlights

July 2018

Steamship Mutual has today released the Club’s 2018 Management Highlights. This includes an introduction from the Club’s Chairman, Mr Armand Pohan, who provides a report on the Club’s financial performance and other recent developments.

The Management Highlights also includes an overview of the Club’s underwriting performance, claims, and the Club’s loss prevention work.
Summary of financial results:

  • Free reserves increased by US$5.7 million to US$516 million putting the Club’s capital well in excess of the AAA level of target capital as measured by Standard & Poor’s.
  • The Financial year combined ratio was 112.8% - after distribution of US$25.6M of capital to the Members - with the three year rolling average at 84.7%.
  • Investment returns of 3.5% were recorded on the combined portfolio.
  • Retained claims and International Group Pool claims were higher in 2017/18 than in 2016/17 but comparable to levels in earlier years.

Mr Armand Pohan, the Club Chairman, said:

"The Club continues to enjoy a very strong financial position; over the past four years the free reserves have increased by US$216 million. This growth was achieved despite a further capital return in 2017 of US$25.6 million. Furthermore the 2018 renewal was the fourth consecutive year without a standard increase. 
Although claims were higher in the 2017/18 policy year than in the preceding year, they remain in line with other recent years. The deterioration in the Club’s underwriting performance was also a result of falling premium income, reflecting the effect of churn. Members may rest assured that their interests are aligned with those of the Directors – over 40% of the membership is represented on the Club Boards – and the Board will use the financial strength of the Club for the benefit of the membership as a whole. 
Excellent service has, of course, remained central to the Club’s offering and will continue to do so. The opening of new offices in Singapore and Tokyo, and the opening of an office in Rotterdam this year, will further enhance service delivery and make the Club a more attractive option for shipowners.”

Mr Gary Rynsard, Executive Chairman of Steamship Insurance Management Services Ltd., has provided his commentary on the report in the video statement above.