The Swedish Club continued to demonstrate a solid performance in the first six months of the new accounting year with the announcement of its half-year results today. It posted an overall surplus of USD 10.3 million, this outcome being largely a result of continued positive underwriting performance in a benign claims environment for the Club and its members, as well as from a stable investment return. At June 30th, 2014, the Club showed a net combined ratio of 93% and free reserves level reaching USD 178 million.
The Club’s investment portfolio generated a return of 3.15% against a benchmark of 2.46%.
Standard & Poor’s revised its assessment of the Club’s Capital and Earnings from ‘Moderately Strong’ to ‘Strong’; acknowledging, in their view, a better than expected operating performance in the last 18 months. Capital adequacy has an AA value in the upper range, and Standard & Poor’s expect the Club’s total adjusted capital to be close to the AAA level in 2016. The Financial Risk Profile has been upgraded from ‘Upper Adequate’ to ‘Moderately Strong’ and the Club maintained its rating of BBB+ (Stable Outlook).
Lars Rhodin, Managing Director of The Swedish Club, commented: “The positive outcome to date demonstrates the value of the Club’s policy of diversification and controlled growth.”
The Swedish Club was founded in 1872 and is today a leading and diversified mutual marine insurance company, owned and controlled by its members. The Club writes Protection & Indemnity, Freight, Demurrage & Defence, Hull & Machinery, Hull Interests, Loss of Hire, War Risks, and any additional insurances required by shipowners or charterers. It also writes Hull & Machinery, War risks and Loss of Hire for Mobile Offshore Units and FPSOs.
Its head office is located in Gothenburg, Sweden, with branch offices in Piraeus, Hong Kong, Tokyo and Oslo.
More information about the Club is available at: www.swedishclub.com