The Shipowners’ Club, the specialist P&I mutual serving the smaller and specialist vessel sectors around the world, has achieved a very good result for the year ended 20th February 2013, in spite of still difficult economic conditions and an increasingly competitive market.
London, Luxembourg, Singapore & Vancouver, 14th June 2013
The Club saw the number of vessels entered grow by some 4.6% in the year to nearly 33, 000, their total tonnage rising by 10.8% to 21.9 million GT. This led to a 5.8% increase in gross premiums of USD 221.9 million. The Club’s Annual Report emphasised that the increase in premium had been achieved through organic growth without the need for substantial general increases.
As other clubs have also reported, Shipowners saw claims frequency and the average cost of claims per ton increasing, particularly with higher value claims. However, there was an improvement in claims reserves from previous years and the overall underwriting surplus reached USD 8.9 million representing a combined ratio of 95.5%. The Club’s investment portfolio performed very strongly with a 7.8% absolute return helping to achieve an overall surplus of USD 40.9 million, increasing capital and free reserves to USD 275.3 million, over 17% up on the previous year.
In his review of the annual results Chairman Donald MacLeod emphasised that the Club continued to grow in a measured and sustainable manner. “What is particularly gratifying is the fact that these positive results have been consistently produced over multiple years, ” he said. “Over the past five years prudent underwriting and management practices in a highly volatile and competitive market place have resulted in an average combined ratio of 88.9%.”
The Club’s Chief Executive, Charles Hume was satisfied with another year’s surplus on the underwriting account which he said, “is consistent with the Board’s policy of maintaining a target combined ratio below the break even 100%.” Hume also commented, “We firmly believe that the financial strength of the Club is of paramount importance to the Members. It is absolutely essential that the Club is very well funded to ensure its security and stability for the benefit of the membership long into the future.”
In addition, Hume concludes, “It is only by constantly anticipating, and regularly exceeding, our Members’ and brokers’ expectations that we will maintain the reputation of the Club for excellent service. That is our most important objective.”
Financial Highlights as at 20th February 2013 (vs 2012)
- · Net result: Overall surplus of USD 40.9 million (USD 46.5 million)
- · Gross premiums earned: USD 221.9 million (USD 209.7 million)
- · Claims incurred, net of reinsurance: USD 146.8 million (USD 118.2 million)
- · Combined ratio: 95.5% (85.0%)
- · Operating expenses: USD 44.3 million (USD 43.0 million)
- · Investment return net of tax: USD 31.9 million gain (USD 18.0 million gain)
- · Capital and free reserves: USD 275.7 million (USD 234.8 million)
A pdf of the full Annual Report 2013 is available for download at www.shipownersclub.com
The Shipowners’ Club is a mutual marine liability insurer, providing Protection & Indemnity insurance to smaller and specialist vessels since 1855. The Club currently insures nearly 33, 000 vessels from over 6, 000 Members worldwide and is a member of the International Group of P&I Clubs.
The Club has offices located in London, Luxembourg, Singapore and Vancouver.