Britannia has released its official statements confirming previously stated results for the 2021-22 policy year.
While recording an overall deficit after tax of $14.0m, Britannia noted a “strong 2022/23 renewal with significant increases in both owned and chartered tonnage”.
A positive investment return of $16.0m was insufficient to counterbalance the underwriting deficit. Free reserves were $588.0m
Britannia noted that “the investment performance this year produced a much smaller gain than in the recent past after some dramatic movements in markets in the fourth quarter”.
Total calls and premiums were higher than in the prior year, rising to $216.9m, from $200.1m in 2020-21.
Reinsurance costs for last year were higher, primarily due to rate increases on the International Group’s reinsurance programme.
Claims incurred during 2021-22 were significantly higher than the prior year. Retained claims for 2021/22 policy year at the 12-month stage were $43.9m, slightly higher than the 2020/21 policy year at the same stage.
There were 16 claims reported that were currently expected to cost more than $1.0m, with an aggregate estimate of $46.4m. This was an improvement on the prior policy year, which saw 20 incidents reported with an aggregate cost of $63.4m.
Pool claims had a spike in the first half of 2021-22 but settled down in H2, albeit they stand at $487.0m which was a record high at the 12-month stage of a policy year, surpassing the 2020/21 total of $478.1m at the same stage.
The development of prior year claims had generally continued to see improvement, but the 2020/21 policy year saw a number of late notifications that reduced the overall improvement and led to an increase in the net provision for 2021/22.
Nevertheless, $45.4m was released from the claims provisions held in respect of those years.
Britannia CEO Andrew Cutler said that “Britannia is enjoying continued growth, thanks predominantly to the loyalty of Members, with entered tonnage at a record high. Reflecting this growth, the Managers continue to invest across all functions and in all of its regional hubs. Key to Britannia’s strength remains the provision of quality service, while maintaining its financial strength.”
| KEY FINANCIAL METRICS | 20 Feb 2022 | 20 Feb 2021 |
| (gt million) | (gt million) | |
| Entered tonnage (owned) | 134.7 | 125.2 |
| Entered tonnage (chartered) | 73.5 | 53.5 |
| $’000s | $’000s | |
| Calls and premiums | 216,931 | 200,086 |
| Net claims incurred | (164,888) | (160,676) |
| Investment income | 16,047 | 76,151 |
| Net operating expenses | (39,113) | (32,779) |
| Net income after taxation | (13,950) | 42,451 |
| Free reserves | 587,869 | 626,819 |
| Net loss ratio | 94.1% | 99.6% |
| Expense ratio* | 12.53% | 11.12% |
| Standard & Poor’s rating | A (negative) | A (stable) |
* In accordance with the International Group Agreement 2021 Britannia is required to disclose the average expense ratio for its P&I business for the past five years. This measures all of Britannia’s costs, except those related directly to the management of claims, as a percentage of call, premium and investment income for a five year period.