Steamship Mutual - 2009 Mid Year Review

Press Release

London, 11 December 2009

Steamship Mutual has today published its Mid Year Review for 2009, providing its Members with an update on the Club’s progress so far this year, in preparation for the forthcoming renewal.

The following are the highlights:

HIGHLIGHTS  

  • Owned entered tonnage increased by 3.2 million GT since 20th February.
  • Overall confirmed increase in renewal premium approximately 13.5%.
  • Standard increase for 2010/11 set at 5% for Class 1 P&I. No standard increase for FD&D.
  • Confirmed investment income earned to date of US$ 47.2 million equivalent to a return of 8%.
  • Prior year release US$ 16.1 million confirming conservative IBNR estimating policy.
  • Projected increase in free reserves by year end of over US$ 50 million.

A spokesman for the Club said:

“Performance for the first nine months of the year has been excellent. Underwriting results were strengthened by a 13.5% increase in premium at renewal and the frequency and severity of attritional claims over the policy year to date has been lower than that experienced last year. Whilst it is too early to forecast the outturn on the current year we expect to achieve an underwriting surplus and to witness a further improvement in the three year average combined ratio. In the absence of a major deterioration over the final quarter, the Club’s free reserves are projected to increase by over US$ 50 million at year end.

After the storm that was 2008 the financial and shipping world are still trying to understand how best to plan for the future. We do not know how effectively and over what timescale the problems associated with the collapse of the banking sector will be addressed and resolved but against such an uncertain backdrop the Club is focussed on ensuring that the underwriting result is sound and that the investment strategy is prudent. The Club’s appetite for investment risk has already been reduced and the strategy has been revised so that outstanding claims liabilities are closely matched in amount, duration and currency by government bonds; the portfolio in excess of these amounts will be invested in accordance with a new risk budget.” 
 

…Ends…

 Note to Editors: Additional comments are available upon request.

For further information visit: www.simsl.com and our centenary website: www.simsl.com/centenary    

Press contact:

Jacqueline Callard
Steamship Insurance Management Services Limited
Tel: 020 7650 6515 (direct)
Email: jackie.callard@simsl.com 

 

About Steamship Mutual

Steamship Mutual (managed by Steamship Insurance Management Services Limited) is a leading provider of Protection & Indemnity (P&I) insurance. As one of the largest P&I Clubs in the International Group, Steamship Mutual insures a diverse range of shipping around the world, for shipowners, managers and charterers.

Steamship Mutual provides a comprehensive and adaptable range of P&I and ancillary insurance covers backed by a stable financial position, strong free reserves and a carefully constructed reinsurance programme. The Club consistently delivers exceptional service to its Members, providing high quality professional claims management and services.

With offices in London, Bermuda, Hong Kong, Brazil and correspondents in every major shipping port worldwide, Steamship Mutual employs highly professional and experienced staff including qualified lawyers, ex-senior mariners, and specialist insurance and claims experts.