2019 Management Highlights

July 2019

SSM MH 2019 cover web

Steamship Mutual has released the Club’s 2019 Management Highlights. It includes an introduction from the Club’s Chairman Mr Armand Pohan with a report on the Club’s financial performance and other developments.

Management Highlights provides an overview of the Club’s underwriting performance, claims, and loss prevention

Key points include:

  • US$ 467 million Free Reserves at 20 February 2019
  • US$21.9 million Return of capital for third year in a row to renewing Members
  • No General Increase
  • Club’s capital is comfortably in excess of the S&P AAA rating level
  • 160m combined owned and chartered gross tonnage
  • A (Stable) S&P Rating
  • Club Chairman, Armand Pohan said :

    "At the last renewal, the Club was able to dispense with a general increase, reflecting its strong financial position. This also enabled it to distribute capital to renewing Members, despite higher claims and lower premium, leaving free reserves still comfortably in excess of required levels for regulatory and rating agency purposes.

    The 2018/19 policy year claims are now projected to be greater than originally expected, accompanied by lower levels of reserve releases from prior years. Pool claims are also higher than in preceding years: in fact, 18 claims exceeding retention were notified to the Pool, none involving vessels entered in the Club. At the same time, premium levels fell, by approximately US$14 million, reflecting amongst other things improved Member records, sales/cancellations, and some losses (and gains) at renewal. 2018 was the 4th successive year (2019/20 is the 5th) without any standard increase, despite churn.

    Service always remains at the forefront so far as the Club is concerned and we are well aware that our Members expect excellence in this respect. At the same time, we aim to ensure that all Members make a fair contribution to the Club according to the risks they present. Our goal, of course, is to achieve a balanced underwriting result not only through appropriate premium levels, but also by careful selection of Members, expert service and effective loss prevention.

    As I have mentioned above, claims were higher in 2018 than in earlier years, and we cannot yet know how claims in the current year may turn out. These and other factors will be considered by the Directors when they meet later this year (October 2019) to discuss the forthcoming 2020 renewal. They will also consider whether any further capital distribution should be made to the Membership.

    I am glad to report that the Club remains in excellent financial health, and we will continue to find ways in which this can benefit our Members".

     

    ** ENDS **