Steamship Mutual Financial Update and 2020/21 Renewal
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.
- 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.”
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 **