Steamship Mutual has today released the Club’s 2017 Management Highlights. This includes an introduction from the Club’s Chairman, Mr Armand Pohan, who provides a report on the Club’s financial performance and other recent developments.
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$70 million to US$510 million putting the Club’s capital well in excess of the AAA level of target capital as measured by Standard & Poor’s.
- The Financial year combined ratio was 84% with the three year rolling average at 81%.
- Investment returns of 2.8% were recorded on the combined portfolio.
- Claims within the Club’s US$10 million retention were 20% lower than the comparable figure for the previous year.
Mr Armand Pohan, the Club Chairman, said:
"For the third year in succession I am able to report an excellent financial year performance. Free reserves have increased by US$70 million to US$510 million; and over the past three years free reserves have increased by US$209 million.
The Board draws comfort from the financial strength of the Club and the platform it provides for taking practical steps to assist the Members. The 2017 renewal was the third in succession without a standard increase. In November 2016 there was a 10% return of premium on the 2014/15 year and it has been possible to reduce the spend on reinsurance by placing greater reliance on the Club’s strong capital position. The Board is determined to use the capital strength of the Club for the direct benefit of the Members and they can look forward to similar actions in the future.”
Mr Gary Rynsard, Executive Chairman of Steamship Insurance Management Services Ltd., said:
“The combined ratio of 83.5% follows the two previous years’ combined ratios of 76% and 83%.The main contributor to last year’s result was the lower than expected level of claims. The Club’s overall claims experience for 2016 was just over half the comparable figure for 2015, and more favourable than in any of the previous six years. Moreover, an improvement was noted across all claims levels. It is difficult to identify the precise reason for this claim performance but undoubtedly credit should go to our Members for the efforts they make in loss prevention action and, of course, our own staff for their work in protecting the Members.
2017 will be an exciting and challenging year for the Club as we prepare for the opening of new offices in Europe – post the Brexit decision in the UK – and also in Singapore and Tokyo. We remain determined to ensure that our Members receive the very best service possible and our new offices will contribute to this objective.”
** ENDS **
Notes to editors:
- The level of owned entered tonnage grew by 6.8 million GT during the year to 20 February 2017 and the overall total entered tonnage rose to 151 million GT.
- Release calls were reduced by the Club following these financial results in May 2017 to: 2015 – 0%; 2016 – 2.5%; 2017 – 12.5%.
- The Club’s Loss Prevention DVD “Cyber Security – Smart, Safe Shipping” ” was nominated for the 2017 “Cyber Security” Seatrade Award.
- The Club's Loss Prevention DVD "Fit for Life" has been nominated for the 2017 Safety4Sea Initiative Award
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