Skuld reports positive nine-month result in benign claims environment

Skuld reports positive nine-month result in benign claims environment 150 150 Haggie Partners

Skuld, a world leading marine insurance provider, today announces a positive result of USD 13.4 million for the first nine months of the 2022/23 financial year (ending 20 February 2023), an improvement of USD 33.9 million compared with the same period last year.

The technical result also continued the positive development from the half-year, ending this reporting period at USD 21.6 million, with an overall combined ratio of 94% driven by the positive contribution from the commercial book of business.

Gross premium and calls ended at USD 350.5 million, an increase of USD 41.5 million compared with the same period last year, and with growth both from mutual and commercial lines of business.

As with the half-year, the nine-month result was characterised by a benign large-claims environment compared with last year. During the first nine months there was a gradual improvement in the technical result of mutual products, but with a combined ratio above target, expectations of inflation increases and an uncertain claims environment, there remains a need for further rate improvements for the mutual portfolio.

The net investment return contributed negatively with -1.5% in the quarter. Markets across asset classes were highly volatile, and central banks in developed markets continued their tightening course, trying to calm labour markets and dampen inflation. Due to the negative investment result together with foreign exchange fluctuations, changes in tax liabilities had a positive effect on the nine-month financial result.

Ståle Hansen, Skuld president and CEO, said: “Skuld is in a very robust financial state. Notwithstanding a relatively benign claims environment, global inflation is likely to impact claims costs negatively as we move into 2023, and we need to remain mindful of accuracy in pricing and selective underwriting. Our efforts to ensure balance in the mutual portfolio will continue as we maintain our leadership position through financial strength and world class coverage and service, ensuring that our members, brokers, and clients can rest assured with Skuld.”