Norway-based Gard has reported a post-tax loss after tax of $53m at a group level on an Estimated Total Call (ETC) basis – a combined ratio of 110% ETC – for the year to February 20th 2019.
Gross written premiums were $798m. The non-technical result was a loss of $9m, including a negative investment return of $3m.
Equity reserves are now $1,159m after the reduction in the deferred call.
Mutual Members will get a 10% reduction in the Estimated Total Call. This will be reflected as a reduction in the last instalment for the 2019 policy year and will amount to $37m.
Gard CEO Rolf Thore Roppestad said that “our industry is typified by volatility and cyclical behaviour and, as such, it is not unexpected that there are years in which losses occur. The fact that this is our first loss in a decade is testament to our ability to deliver better than average results”.
He observed that “2019 was a year of two halves. At the six-month mark the group reported a profit, but by the end of the year this had turned into a loss. The CEO said that this was a combination of a small underwriting loss from a few severe claims and the impairment of an IT project due to change of direction and vendor and a reduction in the expected benefits.
A negative investment return compounded the loss.
The direct insurance entities within the Gard group are Gard P&I (Bermuda) Ltd, Assuranceforeningen Gard -gjensidig, Gard Marine & Energy Ltd and Gard Marine & Energy Insurance (Europe) AS. All are rated ‘A+ by S&P.