Group Club update from broker Tysers: 2021-22: #8 Skuld

Tysers noted that 2021 was “something of a dull year” for Skuld. The combined ratio across all business improved slightly from 108% to 107%, although mutual P&I improved from 121% to 111%. Other business deteriorated from 94% to 104% due to some large claims in the offshore sector.

Premiums rose by nearly $30m to $419m, of which $307m related to mutual P&I, FDD and chartered vessels.

Mutual owned premium rose by just 2.3%, with other lines increasing by 13%.

Net retained claims were up $17m at $318m and contributed to a technical loss of $30m.

A small investment return of $2m plus a tax return of $13m reduced the final loss to $15m. However, Tysers noted that “a somewhat complicated deferred Norwegian cessation tax liability, against which can be offset incurred claims, contributed to an overall reduction in free reserves of $29m to $430m.”

This equated to a “healthy” $4.34 per owned gt.

Chairman Klaus Kjaerulff had said in the insurer’s annual report that

“2021/22 was a difficult year. Pool claims through the International Group were much higher than expected, and Skuld’s own claims – P&I and commercial alike – were also higher than usual. Investment income was driven down by factors beyond our control, including the global geopolitical situation and the ongoing Covid-19 pandemic.”

Kjaerulff felt that, In view of these circumstances, Skuld’s result was “acceptable, and better than I had anticipated thanks to the outstanding efforts of Skuld’s staff and management.”

Tysers felt that Skuld had “stalled” in recent years in its drive to compete with Gard, and noted that CEO Stale Hansen had acknowledged that work was required.

“We are intent upon bolstering Skuld’s robust financial position, so our diligent work to optimize our portfolio and return to positive underwriting results continues”, he said.

Hansen also said that for several years the Club had predicted consolidation in the P&I sector, and so he was not surprised to see it begin. Hansen sees the North/Standard merger as a reminder that size and financial strength are important and, while current strategy is to stand alone, “we are open

to relevant opportunities that may arise”. Tysers was not alone in interpreting this as a hint that Skuld was casting its eye over some of the smaller and financially less robust clubs, with a view to a “merger”.


S&P Rating  A

Gross Tonnage

Owned 99,000,000
Chartered N/A

Free reserves

2022 430,063,000
2021 459,079,000
2020 465,845,000
2019 452,723,000
2018 442,026,000
Year 2022 2021 2020 2019 2018
Calls/Premium 419,548 390,839 390,760 401,621 412,739
Reinsurance Cost 54,123 44,736 47,361 56,070 57,363
Net Claims (incurred) 317,651 301,168 288,842 244,577 251,580
Operating Expenses 78,035 75,065 89,775 92,937 92,224
Net Underwriting Result (30,261) (30,130) (35,219) 8,037 11,572
Gross Outstanding Claims 917,595 690,573 801,897 875,663 925,721
Total Assets 1,116,048 1,080,979 1,067,131 1,040,143 1,070,091
Average Expense Ratio 12.40% 12.60% 13% 12.80% 12.70%
Solvency Margin 1.22 1.57 1.33 1.19 1.16
Reserves/GT Ratio $4.34 $4.68 $5.01 $4.93 $4.73

All figures $’000

All figures are Group figures including all business lines, not just P&I.

Tonnage by Vessel Type

Bulkers 35%
Tankers 47%
Containers 13%
General Cargo 5%
Other 7%

Tonnage by geography

Europe excl Nordic 22%
Asia 45%
Nordic 23%
Americas 6%
Other 4%