Gard reports $150m profit for H1

Norway-based marine insurer Gard has said that H1 2017 financial year to August 20th saw strong performance across the group, with a result after tax of $150m on an Estimated Total Call (ETC) basis. The combined ratio net (CRN) was 77%. Investment return was $88m, leaving equity at $1,285m.

Premium earned gross at Gard P&I (Bermuda) Ltd (includes one half of estimated total calls for the P&I business and gross earned premium for the marine and energy business) for the period was $371.5m, down from $429.2m in the same period last year. Earned premium on own account declined to $307.9m, from $348.1m. Operating expenses were reduced to $29.07m, from $43.6m. The total result of $149.9m compared with a gain of $97.3m in H1 financial year 2016.

The gross earned premiums for H1 were $216.5m for P&I and $105.04m for Marine and Energy. The result on technical and non-technical accounts combined was $129.6m for P&I and $20.28m for M&E.

Gard CEO Rolf Thore Roppestad said that Gard’s insurance performance had been better than forecast over the past three years due to a benign claims environment both in terms of frequency and severity.

The target of a small negative insurance result remained, with a forecasted combined ratio net of 102.5%.

The CEO said that, while Gard’s premium policy allowed it to adjust pricing annually, its mechanism for capital management was designed to take a longer-term view. “When we achieve the capital targets set by our shipowner Board, we return excess funds to our Members. We have done this consistently over the last decade and, in spring 2017, we reduced the premium for the 2016 policy year with $90m. If the full year result at February 20th 2018 is in line with the half year result, a reduction in the deferred call can be expected for the 2017 policy year”, he said.