Broker Gallagher has released its 2020 pre-renewal review, covering past results and the situation for the policy year to date, with individual sections on the Group Clubs. Today: Skuld
Full Name: Assuranceforeningen Skuld Gjensidig
Web Addresss: www.skuld.com
Address: Radhusgata 27, 0158 Oslo Norway
Tel: +47 22 00 22 00
Fax: +47 22 42 42 22
S&P Rating (last change: increase to A from A- in 2012) A Stable
Types Of Vessel Entered
Gallagher asked Skuld CEO Ståle Hansen what to date had been the most valuable lesson learnt from 2020.
Hansen said that the insurer empowered its employees to act independently to ensure Skuld’s service levels always reached the highest standards. “Lockdown had tested that strategic approach and had proved it to be robust. It showed that our focus on a digital journey combined with Skuld’s personal touch is powerful for members, and the right way to operate.”
On being asked whether with hindsight Skuld would have done anything differently Hansen said that the lockdown forced improved efficiencies on everyone, including by replacing in-person visits with online meetings, which saved money and helped the planet. “We could have adopted these practices much earlier, although I miss seeing members and clients in person. Physical meetings will always play a vital role in our complex industry”, Hansen said.
Gallagher noted that during the previous year Skuld had announced that its Lloyd’s syndicate 1897 would cease underwriting with effect from July 1st 2019, with the business being transferred, where appropriate, to its own corporate paper.
Having previously announced an intention to manage the run off in house, the Club actually sold the syndicate to RiverStone, following a tender process. Skuld will continue to underwrite all its hull and offshore energy business as Skuld Hull, the A‑rated corporate platform of Skuld Assuranceforeningen, through Skuld UK in London and Skuld Marine Agency in Oslo.
Gallagher said that the Club’s performance in policy year 2019-20 was reflected in the different combined ratios seen in each sector. Owners P&I mutual had a combined ratio of 119%, well above target; commercial business ran a 100% combined ratio. Skuld Hull, if one excluded Lloyd’s operations, would have returned a 74% combined ratio.
Skuld ended the first six months of the 2020/21 policy year with a negative result of $14.3m. A combined ratio of 115% generated a $25.5m underwriting loss, which reflected some COVID-19 related claims in the cruise ship sector. The Club did however reach August 20th with a 3.2% investment yield in a fast-recovering market, Gallagher observed.
|On Advance Call||n/a||n/a||n/a||n/a||n/a|
|POLICY YEAR DATA||2019-20||2018-19||2017-18||2016-17||2015-16|
|Total Free Reserve||465.8||452.7||442.0||394.0||348.2|
|Tier 1 Capital||367.7||328.6||425.0||235.8||–|
|Tier 2 Capital||144.9||128.3||186.4||142.3||–|
|Solvency Capital Required||289.8||256.5||372.8||284.5||–|
|Return on Total Assets||4.58%||0.03%||5.21%||3.03%||-1.52%|