Steamship Mutual 2015 Management Highlights

Press Release

15 July 2015

2015 MH Cover

Steamship Mutual has today released the Club’s 2015 Management Highlights.  This includes an introduction from the Club’s Chairman, Mr Heinrich Schoeller, who provides a report on financial performance, which was circulated in May.

Mr Schoeller also announces that after 11 years on the Board and five years as Chairman of the Bermuda Club, he will be handing over to Mr Sven Edye of Sloman Neptun. Mr Armand Pohan continues as Chairman of Steamship Mutual Underwriting Association, to which all Members now belong, following a corporate restructuring which took effect last renewal.

The Management Highlights includes an overview of the Club’s underwriting performance, claims, and a review of the Club’s loss prevention work.

Summary of financial results:

  • Free reserves increased by US$75 million to US$376.2 million putting the Club’s capital comfortably in excess of the AAA level of target capital as measured by Standard & Poor’s.
  • The Financial year combined ratio was 78.6%, one of the strongest results in the Club’s history
  • For the 2014/15 policy year, when compared to the preceding year, the Club again experienced fewer claims in the layers below US$250,000
  • Overall net estimated claims, including IBNR provision and after reinsurance recoveries, was US$198.4 million, 13.4% below the figure for the 2013/14 policy year at the same point
  • Larger claims were similar to that experienced in recent years but their average cost was significantly lower and the Club incurred only one claim on the Pool

Heinrich Schoeller said:
“This year’s operating performance was one of the strongest in the Club’s history. As was the case last year, the result is mainly due to a good underwriting performance.”

Armand Pohan said:
“Steamship Mutual looks to achieve strength and stability through careful risk selection, steady growth in all its markets and a complete commitment to supporting its Members with knowledgeable and flexible service.”

Gary Rynsard, CEO of Steamship Insurance Management Services Ltd, said:
“The Club has continued to attract high quality owners and operators, and new Members from some of the world’s largest and most prestigious fleets.  As always the Club’s most enduring feature, upon which its reputation and success depends, is service.”

** ENDS **

  Note to Editors:
• The level of owned entered tonnage grew by 3.8 million GT during the year to 20 February 2015 and the overall total entered tonnage rose to 120.3 million GT.
• Release calls were reduced by the Club following these financial results in May 2015 to: 2013 – 5%; 2014 – 5%; 2015 – 15%.