Claims at West of England Club were “substantially lower than forecast” for the first half of the current policy year due primarily to no claims being notified to the Group pool. “ Additionally, the claims for prior years have developed more favourably than expected notwithstanding latent Pool claim development from other Clubs”, the Club said
The Club said that it had returned an underwriting surplus for the first time in five years in its August 20th financial results, with a combined ratio of 97.9% at the mid-year point.
The reported investment return was minus 2.9%, a result of declines in the value of fixed term bonds and equities. “The Club’s asset-liability matching strategy protected the Club’s solvency position from these turbulent market conditions”, the Club said.
Solvency coverage remained at around 165% and the Club’s capital strength was again re-affirmed by Standard & Poor’s A- rating in August.
West of England Club CFO Francis Corrigan said that there was “no doubt that the robust and decisive action taken at the 2022 renewal has had the desired effect on the Club’s operating performance and we are pleased to report a combined ratio of 97.9%. It is not a time for complacency, however. Inflationary pressures are growing and West’s result, like all Clubs, benefits from what is an exceptional Pool year so far. While this is welcome for the industry, it cannot be expected to be repeated.”
Tom Bowsher, Group CEO at West, said that “the decisions taken at the 2022 renewal were extremely difficult for a Club that prides itself on the strength of its relationships, but our Members understood the reasons. This has been backed by strong support in the current Policy Year with our gross premium increasing to its highest ever level at around $285m. Our diversified product lines continue to grow and contribute to the Club’s surplus and our global team works seamlessly to ensure we are well positioned to support our Members’ needs.”