The Shipowners’ Club reports a strong investment return and an increase in capital and reserves
The Shipowners’ Club, the leading mutual P&I insurer in the smaller and specialist vessel sector, has reported results for the year ended 31 December 2023.
The Club delivered a close to breakeven underwriting surplus of US$ 4.1m, with a 2023 combined ratio of 98.4%. Although volatility remained a factor throughout 2023, the financial year saw a much-improved picture for financial markets following the headwinds experienced in all aspects of the investment universe in 2022. The Shipowners’ Club was pleased to report its investment portfolio returned an overall gain of US$ 65.7m, with closing net assets of US$ 406.8m.
The Club’s capital strength and focused management of risk resulted in Standard & Poor’s reaffirming its credit rating of A (stable outlook).
These results mean that the Club is well placed to continue to provide high quality, well priced P&I insurance to its Members into 2024 and beyond.
In announcing the results, the Club’s Chair, Donald A. MacLeod K.C., stated: “The Club will never sacrifice its underwriting principles for the sake of garnering increased revenues. As a result, the Club’s retention levels are impressive. At the key renewal date of February 20, 2024, 99% Member retention was achieved. We thank all those Members and their brokers for their ongoing support of the Club.”
Simon Peacock, Chief Executive, commented: “Suffice to say that our close to breakeven underwriting result and our excellent investment return sees the Club in very good health. On top of this, our sure and steady growth in Members, in vessels and in tonnage reflects the care we take to deliver the very best service.”
Financial and Member data summary:• Combined ratio 98.4% (2022: 97.4%)• Underwriting surplus US$ 4.1m (2022: US$ 6.2m)• Earned premiums, net of reinsurance US$ 248.9m (2022: US$ 236.4m)• Incurred claims, net of reinsurance US$ 173.8m (2022: US$ 167.3m)• Investments returned a gain of US$ 65.7m (2022: loss of US$ 65.6m)• Capital and free reserves US$ 406.8m (2022: US$ 337.4m)• Entered Members 8,762 (2022: 8,527)• Entered tonnage 31.4m (2022: 29.6m)• Entered vessels 35,074 (2022: 33,808)
The Shipowners’ Club reports modest underwriting surplus at the half year point
The Shipowners’ Club, the leading P&I insurer in the smaller and specialist vessel sector, has reported financial results for the six months ended 30 June 2022
The Club has reported a combined ratio of 96.2% which was in line with budget. The underwriting result of a US$ 4.3m surplus has been driven by 8% growth in earned income compared to the first half of 2021 and a 2% reduction in overall claims costs. These positive variances have been sufficient to more than absorb higher expected costs in the areas of reinsurance (due to a hardening market) and operating expenses (as we emerged from COVID-19 lockdowns). The Club remains well capitalised at 30 June with US$ 335.5m of net assets and this is reflected in the Club’s A (stable) credit rating from Standard & Poor’s.
Financial summary
Underwriting surplus US$ 4.3m (June 2021: deficit US$ 0.9m)Combined ratio 96.2% (June 2021: 100.9%)Gross earned premiums US$ 129.5m (June 2021: US$ 119.7m)Total Members 8,262Capital and free reserves US$ 335.5m (December 2021: US$ 396.4m)The Club is pleased to report a 99% retention rate at the 20 February 2022 renewal. Furthermore, the Club’s measured growth has resulted in gross earned premium at the half year point being US$ 9.8m up on 2021.
Simon Swallow, Chief Executive commented: “The Club sits in a healthy position at the half year stage. Whilst investment returns have been impacted by ongoing global uncertainty, the underwriting result remains cautiously encouraging, notwithstanding the impact of inflation which we monitor closely. Whilst the frequency of COVID-19 claims may have abated, we are starting to see an increased frequency in other claims, testimony to the fact that, encouragingly, Members’ operations are starting to pick up post-pandemic. We thank our Members and their brokers for the continued trust they show in the Club.”