Steamship Mutual returns capital in support of its Members

October 2016

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At Steamship Mutual’s Board Meeting on 25 October 2016, the Directors decided to return capital to the Club’s Members. The return will be 10% of premium paid on Class 1 (P&I) owned mutual entries in the 2014/15 policy year and accounted for on 20th November, 2016.

At the meeting it was decided that no standard increase was required for premium ratings at the forthcoming 20 February 2017 renewal; the third successive year that the Club has had no standard increase. The Club will not require an increase in its minimum deductible levels.

The Directors were also pleased to note the continued growth in the Association’s owned entry, 3.0 million tons in the period 20 February to 20 October 2016, increasing the combined owned and chartered entry to 130 million tons.

The Club reported that underwriting performance remains strong in 2016/17. In the current year, on the basis of owned claims reported to date, the overall cost of claims is the lowest for several years.

 

Club Chairman Armand Pohan said:

“As a mutual, the interests of the Members are paramount. The Board is determined to maintain financial strength and stability whilst at the same time ensuring that the Members derive real benefits from their membership in and contribution to the Club. Aside from the return of premium to the Membership; the Board agreed to greater risk retention within the Club thereby reducing the spend on external reinsurance the cost of which is inevitably passed on to Members; and a continuation of the policy of keeping rates steady.”

The Manager’s Executive Chairman Gary Rynsard commented:

“In making these decisions the Board showed its determination to use the financial strength of the Club for the benefit of the Members.”


** ENDS **

Notes to editors:

Steamship Mutual received an upgraded Standard & Poor’s (S&P) financial strength rating in August 2016 moving from A- to A. S&P noted the Club’s track record of strong financial performance and extremely strong capital.

The Club’s 2016 Management Highlights reported:

  • Free reserves increased by US$64 million to US$440 million.
  • The Financial year combined ratio was 76% with the three year rolling average at 83%.

Steamship Mutual’s 2016 Management Highlights can be accessed here.

Press Contact:

For further information please contact Mairéad Ní Cheóinín on +44 78 2794 2939 or +44 20 7650 6429
Email Mairead.Cheoinin@simsl.com  
For further information visit: www.steamshipmutual.com