In its update on the performance of the International Group sector and individual clubs in 2021-22, Tysers was unimpressed with London Club’s figures, going so far as to call it a “disastrous” year for London Club.
Gross premiums rose by 11% to $133m (excluding the unbudgeted supplementary calls for 2019-21 totalling $82m), but the Club suffered 14 claims of more than $1m, totalling a net $66m. This compared to an average of six over the previous five years, usually costing $20m to $25m a year.
The X-Press Pearl casualty off Sri Lanka has become the Club’s most expensive claim ever, easily moving into the International Group Pool and going above that into the Group’s Excess Loss reinsurance programme.
In addition, Covid- related claims rose from $3m in 2020 to more than $11m in 2021.
Net claims totalled $154m, up form $120m in 2020 (net of reinsurance recoveries of $267m).
Investment returns were minus $4m.
Tysers said that “without the additional calls announced in October 2021 of 35% for 2019 and 2021, and 30% for 2020, the operating loss would have been $66m. The calls enabled an overall surplus of $10m to be achieved, pushing free reserves up to $166m.
Possibly a partial knock-on effect from the unbudgeted calls was that owned tonnage declined from 53m gt in 2021 to 45m gt at the 2022 renewal, although chartered tonnage remained stable.
Chairman John Lyras reported that the Board has carried out a review of measures to achieve viable underwriting results and of other strategic issues such as product development and resources in key market areas, and that the Board was also looking at how to improve work efficiency.
Tysers said that “our suggestion would be a phone call to Skuld to see if it fancies a “merger””.
Managers
A Bilbrough & Co Ltd
| Year | 2022 | 2021 | 2020 | 2019 | 2018 |
| Calls/Premium | 214,848 | 119,497 | 116,175 | 103,660 | 101,728 |
| Reinsurance Cost | 21,019 | 19,529 | 18,502 | 19,671 | 20,393 |
| Net Claims (incurred) | 154,232 | 120,194 | 118,680 | 104,019 | 83,902 |
| Operating Expenses | 24,867 | 16,489 | 15,093 | 13,644 | 12,655 |
| Net Underwriting Result | 14,730 | (36,715) | (36,100) | (33,674) | (15,222) |
| Gross Outstanding Claims | 591,969 | 352,225 | 334,851 | 326,160 | 298,144 |
| Total Assets | 809,311 | 545,036 | 526,501 | 511,570 | 512,840 |
| Average Expense Ratio | 11.95% | 10.46% | 10.41% | 10.30% | 9.68% |
| Solvency Margin | 1.37 | 1.55 | 1.57 | 1.53 | 1.72 |
| Reserves/GT Ratio | $3.69 | $3.08 | $3.43 | $3.30 | $4.29 |
All figures $000s
Gross Tonnage
| Owned | 44,500,000 |
| Chartered | 20,000,000 |
Standard & Poor’s Rating – BBB
Free reserves
| 2022 | 164,003,000 |
| 2021 | 153,571,000 |
| 2020 | 173,891,000 |
| 2019 | 168,843,000 |
| 2018 | 194,642,000 |
Tonnage by vessel type
| Bulkers | 52% |
| LNG/LPG & Tankers | 26% |
| Container | 18% |
| Cargo | 4% |
Tonnage by geography is equally split between Asia and Europe, with 1% from the Americas.