Japan Club slips into deficit for financial year 2019/20

Japan Club has published its accounts for the financial year to the end of March 2020, without comment and without including the loss, expense or combined ratios.

The Club recorded a deficit of ¥1.23bn ($11.68m), compared to a surplus of ¥1.78bn the previous year.

Underwriting income declined slightly, to ¥15.1bn ($143.0m) from ¥16.6bn the previous year, with net claims paid declining to ¥10.7bn from ¥11.7bn.

Provisions for outstanding claims rose significantly, to ¥2.17bn, from ¥1.43bn, while investment income slumped to ¥999m, from ¥2.43bn the year before.

KPIs to March 31st 2020 to March 31st 2019
Ordinary income 16,144,781,107 19,095,357,432
Underwriting income 15,094,993,609 16,598,498,974
Net premiums written 14,935,843,429 16,369,284,519
Investment income 999,952,615 2,428,084,902
Other ordinary profit 49,834,883 68,773,556
Ordinary expenses 17,841,605,330 16,614,951,551
Underwriting expenses 13,371,248,135 13,234,916,338
Net claims paid 10,714,418,475 11,742,717,746
Provision for outstanding claims 2,167,753,900 1,435,495,825
Provision for underwriting reserve 489,075,760 56,702,767
Operating expenses 2,887,399,893 2,941,947,477
Other ordinary expenses 187,713,171 195,386,423
Ordinary surplus/ deficit (1,696,824,223) 2,480,405,881
Surplus/Deficit before income taxes (1,697,052,570) 2,480,795,181
Surplus/Deficit after income taxes (1,232,740,349) 1,783,891,323

Net premiums written consisted of the following;

  to March 31st 2020 to March 31st 2019
Calls and premiums written ¥19,960m* ¥21,069m**
Reinsurance premiums ceded ¥5,025m ¥4,700m
Net premiums written ¥14,935m ¥16,369m

*(2019/20) Supplementary Calls for 2018 Policy Year (40%, ¥4,929m) are included in the above ¥19,960m.

**(2018/19) Supplementary Calls for 2017 Policy Year (40%, ¥5,475m) are included in the above ¥21,069m.

Net claims paid consisted of the following;

  to March 31st 2020 to March 31st 2019
Claims paid ¥15,437m ¥13,147m
Reinsurance claims recovered ¥4,722m ¥1,404m
Net claims paid ¥10,714m ¥11,742m

Earlier this year Japan Club reported that for 2019/20 policy year the Club had experienced more large claims than usual for ocean-going vessels. The loss record worsened significantly. Neither was the loss record for Japanese coastal vessels good, although in this case it was better than for the previous year. The Club imposed a 7.5% general increase in premiums for the 2020 policy year. There was no general increase in premiums for Japanese coastal vessels for the 2020 policy year.

The Club started the 2020 Policy Year (beginning from February 20th 2020) with 2,300 vessels / 96.2mt of ocean-going vessels (up by about 3.4mt year on year) and 1,887 vessels / 2.6mt of Japanese coastal vessels (up about 30,000 tons year on year).

Meanwhile, Japan announced the retirement of Hiroshi Sugiura as Director General, Representing Director, to be replaced by Shizuo Takahashi, subject to the approval of Japanese Financial Services Regulator.

https://www.piclub.or.jp/attachment/about_financial/70th_Income_and_Expenditure_Account.pdf

https://www.piclub.or.jp/attachment/about_financial/70th_Balance_Sheet.pdf