P&I Club Britannia has reported an aggregate post-tax surplus of $80.6m for the year. The Board has approved a further capital distribution of $20m, to be paid to P&I mutual Members with ships on risk as of midnight May 15th 2018.
Britannia said that its ability to continue to assist Members was a consequence of repeated strong underwriting results, with 2017/18 seeing a $64.6m underwriting surplus and a $48.6m gain on its investment portfolio. The Club’s balance sheet reserves rose by $50.6m, after taking into account the $30m capital distribution to Members during 2017. The surplus assets in Boudicca stood at $211.6m.
While claims in 2017/18 were higher than in the 2016/17 policy year, which had been a remarkably light one for claims, during the 2017/18 policy year the level of claims was well within projection, the Club said. It noted that large claims – those expected to cost the Association $1m or more, remained consistent in number, but returned to the higher average experienced in earlier years. IG Pool claims increased, with a number of high profile casualties, but remained within projection. Britannia noted that the club itself did not call upon the International Group for any claims in 2017/18.
Britannia Chairman Nigel Palmer said that “to be able in the past 18 months to return $61m in to our Members through deferred call waivers and capital distributions, while maintaining the Association’s S&P A (stable) rating, re-affirms our mission statement. As before, the Board will review how it can continue to assist Members when it meets in October.”