Norwegian Hull Club books $17.8m gain for first nine months; but CR 114%

Norwegian Hull Club (NHC) has reported a gain of $17.8m for the first nine months of 2017. The technical result of insurance operations was minus $14.9m while the result from investment income and other financial items was plus $32.7m.

The Club said that depressed values of ships and other units insured, combined with ample supply of capital to marine insurance exerting a downward pressure on premium income, continued during Q3, and because of this gross premium income was below the corresponding figure in 2016.

NHC said that overall natural catastrophe insurance market losses during Q3 was expected to have an impact on overall reinsurance capacity and pricing in the direct market going forward.

NHC said that it experienced losses in the aftermath of the hurricane Irma in Q3, meaning that profitability on insurance operations was beneath previous expectations. The combined ratio for the first nine months period was 114%.

Return on the investment portfolio was 5.3% in local currencies and 7.7% in US Dollars, equal to $31.6m. The balance of financial income came from interest earned on bank accounts and receivables as well as foreign exchange items.

Equity reached $288.3m at the end of September 2017.

(US$ 1,000)Jan to Sept 2017Jan to Sept 2016Q3 2017Q3 20162016 total
Gross earned premiums128,759133,44242,77944,816165,500
Gross claims-219,943-117,041-145,712-26,395-135,466
Gross result-91,18416,401-102,3318,42130,034
Premiums for own account105,269113,26336,38637,615137,043
Claims for own account-108,862-98,350-56,173-25,336-122,141
Insurance result for own account-3,59314,913-19,78712,28014,903
Net operating expenses-11,355-11,848-4,792-3,282-15,447
Technical result-14,9483,065-24,5798,998-545
Net financial items32,74527,50610,810-8,12818,164
Operating result17,79730,571-13,76987017,619
Loss ratio103%87%154.4%67.4%89.1%
Combined ratio114%97%167.6%76.1%100.4%