The Britannia Steam Ship Insurance Association Ltd (Britannia) has said that it will distribute a further dividend of $10m to club Members and (as previously announced not impose any general rate increase for either P&I or FD&D calls.
The dividend was in spite of an overall deficit of $9.3m after tax, including an investment loss of $2.6m.
Britannia said that the 2018/19 policy year to February 20th had been “challenging” due to a combination of disappointing investment returns and claims being higher in value than expected. The Club’s strong capital position enabled the Board to agree nil general rate increases for both P&I and FD&D calls, for the third and sixth consecutive year respectively.
Investments had recovered strongly during the first two months of the new financial year, the Club said.
As of February 20th 2019 the Association’s reserves stood at $391m after taking into account the $30m capital distribution made to Members during 2018. Surplus assets in Boudicca, which are available to meet future claims, were $197m.
The Club said that the aggregate value of retention claims during the 2018/19 policy year was higher than expected, driven by a larger number of high value claims – those in excess of $1m. There were 18 such claims notified in 2018/19, up from 13 in 2017/18. International Group Pool claims were marginally higher in aggregate value than the previous year. There was a significantly higher number of notifications – 23 compared to 13.
|GT million||20 Feb 2019||20 Feb 2018||20 Feb 2017|
|Entered tonnage (owned)||112.0||107.0||100.9|
|Entered tonnage (chartered)||19.0||20.0||15.0|
|Calls and premiums||204,415||208,147||225,854|
|Net claims incurred||(119,600)||(93,552)||(130,268)|
|Net operating expenses||(28,649)||(25,666)||(25,719)|
|Net income after taxation||(9,297)||80,615||32,946|
|Net loss ratio||83.8%||61.4%||80.9%|
|Average expense ratio||10.90%||9.73%||9.42%|
*The Association benefits from a reinsurance contract with Boudicca Insurance Company Limited.
|USD (000)||USD (000)||USD (000)|
|Boudicca’s surplus assets available to meet future claims by the Association||196,900||211,600||221,700|