Club Update

May 2019

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At their Board Meeting held in Amsterdam on 14 May 2019, the Directors of Steamship Mutual approved the Clubs’ Report and Accounts for the 2018/19 policy year and authorised publication of the following key points in advance of the release of detailed results.

Highlights

  • The Club distributed US$21.9 million to mutual renewing members on 20th March 2019.
  • The 2019/20 renewal was the 5th consecutive year of no general increase.
  • Renewal rates for owned mutual Members increased by an average of 2.1%.
  • Upon renewal, total entered tonnage rose to an all-time high of 160m GT.
  • Increasing levels of claims from Members and from the International Group Pool are reflected in a combined ratio of 116% for the 2018/19 financial year.
  • Free Reserves reduced by US$ 27 million before the capital distribution and stood at US$ 467 million at year end.
  • The Club’s capital is comfortably in excess of the S&P AAA rating level.
  • The Board will consider whether to make a further capital distribution at its October meeting.
  • Gross investment income in the 2018/19 financial year was US$18.8 million.

The Club Chairman, Mr Armand Pohan, commented:

“ The Club ended the 2018/19 year in a strong financial position, enabling it to avoid a general increase at the 2019/20 renewal and to distribute over US$20 million of capital to Members.

Claims in the 2018/19 policy year claims are now estimated to be greater than originally forecast, and there were lower levels of claims reserve releases from earlier years.  Pool claims were also higher than in preceding years. At the same time, premium fell, reflecting  improved Member records, cancellations because of sanctions, and some losses (and gains) at renewal.

Over the year, free reserves reduced to US$489 Million before the Club’s capital distribution to its Members of US$21.9 Million. It is to be anticipated that free reserves will increase in some years and decrease in others. This leaves year end free reserves of US$467 Million, comfortably in excess of S&P’s AAA rating level. The Club was able to dispense with a general increase and to distribute capital reflecting of the Club’s financial strength. In October the Board will consider whether further funds should be distributed to Members. "

 

Release Calls

The Directors agreed that release calls for both P&I and Class 2 FD&D will be set as follows:

  • 2017/18: 0%
  • 2018/19: 0%
  • 2019/20: 10%

   ** ENDS **

 

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