Japan Club reports large claims for 2021 business year

At the meeting of Japan Club’s board of directors on June 23rd details of the 2021 business year for the club were revealed.

The Club said that the 2021 business year saw large claims in both ocean-going vessels and Naiko Class vessels insurance. The Club had a claim that was the highest-ever in Naiko Class insurance.

The insurance balance deteriorated significantly, mainly due to a considerable increase in the claims payments related to the Covid-19 pandemic from the previous year, leading to the decision to apply a general increase of 10% for Naiko Class (5% for Naiko Class harbour tags) and ocean-going vessels, Charterers’ entries and FD&D covers for 2021.

As a result, net premium income increased by ¥1.84bn from the previous year, reaching ¥16.81bn.

Overall investment income increased by ¥70m from the previous year to ¥3.39bn.

However, the net claims paid increased by ¥4.39b from the previous year to ¥17.64bn. Due to the large claim to Naiko Class vessels insurance mentioned above, an additional contribution under the reinsurance contract was incurred to the Association, and the Club recorded the additional contribution to the loss reserves.

As a result, a deficit of ¥410m was recorded and the reserve amount decreased by ¥4.87bn from the previous year.

The Club said that it had developed a new management plan consisting of long-term, medium-term, short-term plans for the current year, and set a long-term mission to protect the interests of the Members and to promote the sound development of the Association.

“We keep working on current priorities and urgent issues to achieve stable profitability and always to be your first choice Association”, the Club said.