Large claims push Skuld to negative 9mo result

Norway-based marine insurer and P&I Club Skuld has reported a loss of $20.5m for the first nine months of the 2021/22 fiscal year, stating that large claims had outweighed premium growth and a positive investment return. For the same eriod last year a loss of $10m was reported.

Skuld said that the technical result had shown positive development over the past three months, with the combined ratio improving from 127% to 117%.

The technical result was a loss of $51.7m, compared with a loss of $46.2m for the same period last year.

Skuld said that the technical result was influenced by several large claims reported through the International Group pooling system, as well as some large claims in Skuld’s own portfolio.

Gross premiums and calls reached $309m, up by $19.4m compared with the same period last year.

Skuld said that, despite the increase in premium, “the continued negative technical result underpins the need to bring the portfolio back into balance through improved rates”.

The net investment return for the period was 2.2%..

Consolidated Income Statement As At 20 November 2021 2021 (9 months) 2020 (9 months)
Technical Account    
Premiums and calls 309.0 289.6
Reinsurance premiums -41.7 -32.8
Premiums for own account 267.3 256.8
Pool claims -32.0 -36.5
Own claims for own account -229.6 -214.0
Claims incurred for own account -261.6 -250.5
Acquisition costs -43.9 -41.0
Administrative expenses -13.5 -11.5
Net operating expenses -57.3 -52.5
Balance carried to non-technical account -51.7 -46.2
Non-Technical Account    
Balance from technical account -51.7 -46.2
Net investment income 25.5 38.0
Taxes 5.6 -1.9
Balance carried to members’ funds -20.5 -10.0

Ståle Hansen, Skuld president and CEO, said: “In spite of this disappointing – but not unexpected – result on the mutual book of business, Skuld continues to see positive contributions from our commercial products, remaining firmly committed to our diversification strategy. I remain strongly optimistic about its long-term support of Skuld’s renowned services to members and clients.