Claims in 2023/24 better than had been expected, says Steamship Mutual

Group Club Steamship Mutual has said in an update ahead of the end of the policy year that the Club’s own incurred claims and the cost of Group Pool claims for the 2023/24 policy year had remained less than budgeted. Claims development for prior years was also better than budget expectations, and the Club’s financial year-end combined ratio was expected to be less than 100%.

For the 11 months to January 20th 2024 the Club’s investments, excluding currency movements, recorded returns of $87m – 7.0% – with bonds, equities and cash all ahead of budget.

The Directors noted the continued growth in the Club’s owned entry by 6.6% in the period February 20th 2023 to January 20th 2024, increasing the total owned entry to over 124.2m gt.

After 10 months of the 2023/24 policy year the Club had not incurred any claims which have exceeded its $10m retention and gone into the IG Pool. Steamship noted that seven pool claims had been notified by other IG Clubs.

Incurred costs in the pooling layers compared favourably to the average of recent policy years, said Steamship.

For 2022/23 and prior years the overall development of the Club’s claims had been favourable. The development of IG Pool claims had also been better than expected, notably for the 2022 policy year, which remained at low levels.

At the Board meeting in October 2023 it was decided that there should be a general increase of 5% in premium ratings.

At the Board meeting in October 2023 the Directors decided that a capital distribution to Members be made equivalent to 7.5% of premium paid for Class 1 P&I mutual entries in the 2023/24 policy year, in respect of vessels whose entries are renewed for the 2024/25 policy year. The distribution, of approximately $25m will appear on Members’ statements shortly after the February 2024 renewal.