Financial position and open policy years from Standard Club

Ahead of publishing a more detailed review of last financial year, Standard Club informed its members on Monday afternoon May 22nd of its financial position and open policy years. Jeremy Grose CEO of Charles Taylor & Co, said that the board of the club met on Friday May 12th in Rome and reviewed the club and group’s financial position.

He said that the consolidated financial statement would show that, for the second year in a row, Standard Club recorded a modest underwriting surplus, with a combined ratio of 95% (following a 5% return of mutual premium on the 2016/17 policy year).

For the financial year ending February 20th 2017 the investment portfolio returned 3% against the benchmark. “The healthy investment returns, supported by the positive underwriting result, which includes the results on the club’s share of the Standard Syndicate, delivered a surplus of $40m and an increase in free reserves from $390m to $430m”, the Club said. The 10% increase in free reserves closely tracked the growth in tonnage, which increased by 9% to 150m gt, from 135m gt 12 months previously.

The gt increase over the year was mostly due to organic growth, with owners/members adding tonnage but partly due to new owners/members joining both during the 2016/17 policy year and at renewal, the Club said.

Grose informed members that the board had “reviewed carefully the results of the club’s share of The Standard Syndicate”. He noted that current market conditions were challenging for what was an “important new pillar in the club’s strategy”. The Club said that the Syndicate had nevertheless made strong progress, “welcoming two new capital providers and building volume and new lines of business”. He reported that “the board remains resolute that growth and diversification will secure the future strength of the club, and is fully committed to supporting the Syndicate so that it can make a strong positive contribution to support owners’/members’ premiums”.

The club said that overall a stable underwriting performance and good quality, selective growth was in line with the club’s strategy of “delivering a broad range of covers that represent excellent and sustainable value for its valued membership backed by first-class financial security and service.


· 2014/15 policy year closed, no further calls on owners/members.

· 2015/16 policy year: Modest underwriting deficit forecast. No further calls expected.

· 2016/17 policy year: Modest underwriting surplus forecast. Apart from the final instalment of the estimated total premium, which is due on November 1st 2017, no further calls were expected to be necessary, the Club said

Release calls

· “The board continues to have a high degree of confidence in the financial strength of the club and future call stability. It wishes this to be evident to owners/members and has therefore decided to further reduce calls which were already amongst the lowest in the International Group”, the Club said.

· Release call percentages have been set at 0%, 0% and 6% of estimated total premium for the three open policy years of 2015/16, 2016/17 and 2017/18.


· 2014/15 policy year closed, no further calls on owners/members.

· 2015/16 and 2016/17 policy years: The Club said that claims in these policy years have developed better than forecast with both years recording an underwriting surplus. No further premiums were expected to be necessary.


· 2014/15 policy year closed, no further calls on members.

· 2015/16 and 2016/17 policy years were performing satisfactorily. No further premiums were expected to be necessary.

Release calls

· The release call percentages are 0% for all open policy years. The Club said that “these low levels of release calls reflect the board’s confidence in the financial position of the class and future call stability”.


· 2014/15 policy year closed with no further premiums expected to be necessary for any open policy year. The release calls were maintained at 0% for all open policy years.