Financial Strength Maintained at Steamship Mutual after Capital Return

January 2018

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At Steamship Mutual’s Board Meeting in Singapore on 23 January 2018, the Directors noted the continued growth in the Club’s owned entry by 4.5 million tons, increasing the combined owned and chartered entry to 156 million tons.

The overall cost of claims for the current P&I year is significantly higher than the very low level at the same point last year, but is similar to the average experience of the last several years. Pool claims, also show an increase.

As regards investments, in the eleven months ending January the Club recorded a return of 3.2% excluding currency movements, which are allocated to the underwriting result.

In accordance with the decision of the Board in October 2017, 10% of premium paid on mutual entries in the 2015/16 policy year (US$ 25.6 million) was returned to Members in November. Notwithstanding this, projected year-end Free Reserves are expected to remain broadly unchanged. In October 2018 the Directors will consider whether further returns of premium should be made

Following the United Kingdom’s decision to leave the European Union a new Steamship insurance company will be established in the European Union to insure risks within the European Economic Area. The Board decided that the new company will be established in the Netherlands.

Club Chairman Armand Pohan said:

“In December the Club received its license to operate in Singapore and it was fitting that the Board meeting was held in this important shipping centre immediately thereafter. The service that the Club now provides from its regional offices is central to our future development as we are better able to respond to the needs of the Members particularly in the Far East. Indeed the new Steamship Mutual office that will be established in Rotterdam will also enhance service to our European Members.”

Gary Rynsard The Manager's Executive Chairman, commented:

“In an environment where claims are higher than last year and premium remains under pressure from the effects of “churn” it is encouraging that free reserves are likely to remain at the same high level as reported last year. This is particularly the case when one considers the substantial return of premium provided to the Members in November.”

  ** ENDS **

Note to Editors:

Steamship Mutual (managed by Steamship Insurance Management Services Limited) is a leading provider of Protection & Indemnity (P&I) insurance.

Steamship Mutual offers a comprehensive range of P&I products and ancillary covers.

Standard & Poor’s (S&P) financial strength rating remains at A.

 

The Club’s 2017 Management Highlights reported:

  • Free reserves increased by US$70 million to US$510 million.
  • The Financial year combined ratio was 83.5% with the three year rolling average at 81%.
  • Steamship Mutual’s 2017 Management Highlights can be accessed here.

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