Steamship Mutual reports a return to positive underwriting results

May 2014

Steamship Mutual has released its financial results following approval of its 2013/14 Report & Accounts by the Board of the Club.

The Club achieved a financial year combined ratio of 96.7%, whilst maintaining a low risk investment strategy during the year (the combined investment portfolio recorded a modest 0.9% gain of US$8.4 million).

Total cash and investments increased by 3.1% to US$973.8 million and free reserves by US$15 million to US$301.2 million.

When compared to 2012/13, the Club experienced fewer claims in the layers below US$250,000 and a lower average cost of such claims, but a greater number of larger claims above US$250,000. Overall, net estimated claims for the 2013/14 policy year, including IBNR provision and after reinsurance recoveries stand at US$229.2 million, 7.5% below the level of estimated claims for the 2012/13 policy year at the same point.

Owned entered tonnage grew by 3.3 million GT during the year, resulting in overall entered tonnage of 113.7 million GT.

The Report & Accounts will be published in June.

 

Gary Rynsard, CEO, commented:

“The improvement in both the underwriting result and the financial position of the Club follows carefully controlled measures implemented by the Board to respond to the challenging market conditions over the past few years. The level of free reserves is now restored to its 2010/11 level.”

“However, it is the improvement in the underwriting result that is most welcome. At the 20th February renewal, the achieved premium ratings, including improvements in deductibles, will enhance the Club’s ability to produce good underwriting results in the future.”

“We have been delighted to welcome some high quality fleets to the Club and we are convinced that our commitment to service has been a big influence on their decision to join us. Whilst the Club only seeks growth on a sustainable basis, new Members are both an encouragement to us and recognition that we are a home for the best operators in the Industry. Equally important is the number of owners who have committed new buildings to be delivered in 2014. This is a strong endorsement of the Club’s relationship with its Members, and we are very grateful to them and to their brokers for the support they have again shown the Club.”

** ENDS **

Notes to editors:

The Club’s DVD "Groundings - Shallow Waters, Deep Trouble" was shortlisted for 2014 Seatrade Awards in the Safety at Sea category.

"Piracy – The Menace at Sea” DVD won 2012 Seatrade Award in the Safety at Sea category

Steamship Mutual is a platinum sponsor of the Nautical Institute’s 2014 Command Series of seminars for which the theme is navigational competence, which are to be held in Sydney, Manila, Limassol, London and Glasgow in 2014. The Club is also supporting the production of Greek and Tagalong versions of the joint Nautical Institute and Royal Institute of Navigation publication “The Navigator”.

The Managers co-operate with Videotel Marine International in the production of video and computer based training programmes. Its recent production “COLREGS & IALA Buoyage Training Course” won Gold at the Horizon Interactive Awards.

For further information contact Carole O'Brien +44 (0)207 650 6512