ITIC returns profits to members

Mutual insurer International Transport Intermediaries Club (ITIC), which provides professional indemnity cover for intermediaries serving marine, offshore and renewable and aviation customers, has reported annual premium growth in 2021/22 of 9.8%. It will be returning $8m in surplus funds to its members.

Reporting its annual results for 2021/22, ITIC, together with its mutual reinsurer TIMIA, increased its free reserves from $213.9m as of May 31st 2021 to $221.9m as of May 31st 2022.

ITIC Chairman Lars Säfverström said a continuity credit of 15% of premium was paid for one-year policies, the credit was 15% of the premium, while for two-year policies the credit was 25% for year one with at least a 15% promised credit for year two.

Those in the second year of a policy, begun in 2021/22, will receive a credit of 25%, up from the original 15% promised by the board at its meeting in March 2021.

The risk for all claims up to $1m is retained by ITIC, as well as an additional two retentions in excess of the primary $1m level and one retention excess of $2m.

“As the marine insurance market has been a “hard” market for the past eighteen months to two years, ITIC paid 12.5% more for its reinsurance in addition to the adjustment for additional premium written throughout the year. We are comfortable that the reinsurance in place reduces the risks of large claims to an acceptable level at a reasonable cost, even with this increase”, Säfverström wrote.

He said that ITIC’s annual premium income was up 9.8% meaning that the insurer had recorded three good years of growth. ITIC continues to retain approximately 96% of its members at renewal each year.

The only full year that remains open is 2021/22. ITIC has never requested additional premium for any policy year.

ITIC is managed by Thomas Miller.

Combined ITIC and TIMIA Financial Highlights for the year ended 31st May 2022

US$ ‘000s Year end May 2022 Year end May 2021
Gross premiums written 65,672 59,787
Reinsurance premiums (excess loss) (5,365) (4,767)
Claims incurred less excess loss reinsurance recoveries (8,517) (24,047)
Operating expenses (24,485) (20,752)
Operating result for the year before continuity credit, investment result and exchange result 27,305 10,221
Continuity credit (14,201) (13,315)
Operating result for the year before investment result and exchange result 13,104 (3,094)
Investment result (realised and unrealised) (6,253) 30,356
Taxation 122 (575)
Exchange gains / (losses) 1,041 2,541
Surplus for the year 8,014 29,228
Free reserves brought forward at 1st June 213,906 184,678
Free reserves carried forward at 31st May 221,920 213,906
Free reserves:    
Investment funds and net assets available for outstanding claims 290,910 292,661
Less: Outstanding claims reserves net of reinsurance recoveries (68,990) (78,755)
Free reserves carried forward at 31st May 221,920 213,906