Leading marine insurance provider Skuld today announces a positive result for the first six months of the 2019/20 policy year. Bottom-line net income was USD 2 million, compared with USD 14 million at the half-year of 2018/19. The result arises mainly from investment income and Skuld’s commercial P&I book of business.
Alongside claims from Skuld members, there were a number of reported pool claims from other P&I clubs which had a negative impact on the technical result. The half-year combined ratio was 112%, compared with 95% for the same period of 2018/19. Gross written premiums showed an increase of USD 10 million.
In contrast to the technical account, net investment income contributed positively, with USD 26.6 million. Greater economic uncertainty had a welcome positive impact on Skuld’s unchanged long-term investment strategy, with its majority weighting towards low-risk bonds that reduce volatility.
Earlier this year, Skuld’s Lloyd’s syndicate 1897 was placed into a three-year run-off programme, and the book closed to new business. Skuld now writes hull and machinery (H&M) business on corporate paper under the Skuld Hull brand, which has contributed positively to these half-year results.
Ståle Hansen, Skuld president and CEO, said: “Despite the high number of reported claims, we are pleased with the half-year result, particularly given the challenging international marine insurance environment.
“Due to the competitive and economic pressures facing the global marine risk market, it is crucial for Skuld to continue with our beneficial diversification strategy and retain our resolve to maintain a sustainable balance between financial strength, risk, and growth. This balance is the key to achieving low volatility for club members, and to remain a stable and robust risk partner for them into the future.
“Skuld’s policies of attracting quality tonnage through service excellence and pursuing risk diversification continue to create stability in the club’s operational performance. Our number one focus is and always will be the interests of our members and clients. We will continue to provide them with the competence and 24-hour service across the world that they have come to rely upon.”