Japan Club summary of financial statements for 2022 financial year

Japan Club has released a summary of it financial statements for 2022.

It said that the 2022 business year continued to be marked by the Covid-19 pandemic, although economic activity returned to normal as people looked towards a post-Covid future. The year was also affected by rising prices, supply chain disruptions caused by the efforts to bring Covid under control, and the impact of wide-ranging economic sanctions on Russia.

In the previous fiscal year, the Association recorded a net loss, resulting in a significant decrease in the reserve. In the current fiscal year, the highest priority was placed on improving income and expenditures to achieve a stable surplus. As a result, the surplus increased by JPY2.94bn from the previous year to JPY3.54bn, and the net surplus was JPY4.65bn. This sum included an extraordinary gain of JPY1.16bn from the sale of the head office building.

Insurance Premiums

In terms of premium income, the Club applied a general increase of 10% for ocean-going vessels, Charterers’ entries, and FD&D covers in the 2023 policy year renewal.

For Naiko class entries, the total premium increased by 15% after Members’ rates were adjusted to reflect their individual claims records.

Japan Club said that these increases were made “to improve the balance of income and expenditure and ensure the soundness of the financial base”.

For ocean-going vessels insurance, the Club also collected 40% of supplementary call for 2021 policy year, as originally planned. Additionally, it collected unbudgeted supplementary calls, which were 25% of advance calls for each of the 2020 and 2021 policy years.

As a result, net insurance income increased by JPY13.5b year on year to JPY30.31bn.

Investment Income

Investment income decreased by JPY160m to JPY3.23bn.

Insurance Claims

Insurance claims payments decreased by JPY2.34bn to JPY25.66bn because of a decrease in Covid-19 related claims. This was despite the occurrence of two pool claims in excess of US$10m. Net insurance claims payments decreased by JPY2.29 billion year on year to JPY15.34bn.

Net assets increased by JPY4.41bn to JPY16.44bn.

The reserve, an indicator of financial soundness, increased by JPY5.32 billion to JPY27.44 billion, recovering from a large decline in the previous year.

Accounts P/LAmount(JPY Billion)
Underwriting income251.9
Investment income32.3
Underwriting expenses198.1
Other expenses41.7
Provision for catastrophe reserve-9.1
Special income11.6
Surplus after income taxes46.5