Steamship Mutual Financial Update and 2018 Renewal

October 2017

At Steamship Mutual’s Board Meeting on 24 October 2017, 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 2015/16 policy year and accounted for on 20 November, 2017.

At the meeting it was decided that no standard increase was required for premium ratings at the forthcoming 20 February 2018 renewal; the fourth 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, 3.9 million tons in the period 20 February to 20 October 2017, increasing the combined owned and chartered entry to 155 million tons.

The Club reported that claims performance compared favourably with the average experience of the last three years for its owner Members.

As far as claims on the International Group Pool are concerned the Club noted that claims are higher at this point of the year’s development than in 2016/17. Ten claims had been reported of which four are provisional. However it was noted that the figures for claims at this level were immature, and that future development of claims was uncertain.

Investment returns in the first seven months of the policy year were 2.1%.

 

Club Chairman Armand Pohan said:

“The excellent financial performance over the last three years has allowed the Directors the opportunity to again agree a meaningful return of capital to the Members. It is also very pleasing to be able to decide on a zero general increase for the fourth year in succession. The strength of the Club provides the platform for the Board to take such steps to assist our Members.”

 

The Manager’s Executive Chairman Gary Rynsard commented:

“The Club’s capital position continues to be very strong and is likely to strengthen further by year end. That being the case the Board have been able to announce a zero Standard Increase, the fourth in succession, and a return of 10% of the premium for the 2015/16 year, amounting to US$26 million, the second successive year that the Club has returned premium.”

 

** ENDS **

Notes to editors:

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.