Steamship Mutual Financial Update and 2020/21 Renewal

June 2020

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At their Board Meeting held on 2 June 2020, the Directors of Steamship Mutual approved the Clubs’ Report and Accounts for the 2019/20 policy year and authorised publication of the following key points in advance of the release of detailed results.

Highlights

  • Strong underwriting result gives combined ratio of 99.8% for the 2019/20 financial year and an average combined ratio for last six years of 92.1%.
  • The Club distributed US$ 16.3 million to mutual renewing members on 20th March 2020, a total of US$ 90 million over the past four years.
  • Free Reserves improved by US$ 48.3 million after the capital distribution and stood at US$ 515 million at year end.
  • The Club’s capital remains comfortably in excess of the S&P AAA rating level.
  • Gross investment income in the 2019/20 financial year was US$ 66.9 million
  • The 2019/20 renewal was the 5th consecutive year of no general increase.
  • Renewal rates for owned mutual Members increased by an average of approximately 5%.
  • At renewal, total entered tonnage stood at 157 million GT.
  • During the year owned tonnage increased by 3.5 million GT.
  • Establishment of Steamship Mutual Underwriting Association (Europe) Limited in Cyprus.

The Club Chairman, Mr Armand Pohan, commented:

Despite the eighteen Pool claims (two involving the Club), the Club’s claims experience in the last policy year was relatively benign. The result was a significant improvement (compared to the preceding year) in the 2019/20 financial year combined ratio to 99.8%. A very strong investment return meant that the Club ended the year with free reserves of US$515 million after payment of a US$16 million capital distribution to renewing members. By any standards this was a positive result, but of course since 20th February the COVID-19 pandemic has taken its toll on almost all commercial enterprise, and the Club’s reserves may well be adversely impacted in 2020/21. The Club accumulates reserves in order to absorb and help shield its Members from all kinds of financial shocks, including the unexpected.

 

Release Calls

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

  • 2018/19: 0%
  • 2019/20: 0%
  • 2020/21: 10%

** ENDS **