Broker Tysers has now released its annual assessment of the P&I Market and, in particular, the International Group Clubs. IMN will be summarizing the individual clubs over the coming days, concluding with a combined summary of the club’s financial performances, conditions, rankings, ratings etc.
Standard & Poor’s Rating: A
Tonnage by type
Tonnage by Geography
Tysers observed that North felt it was making good progress, with diversification helping to improve overall results. Premium income rose by nearly $60m to $406m. While the combined ratio of 114% was an improvement on the previous year’s 126%, it still meant an underwriting loss of $45m, (-$68m the previous year). It was the fourth year running that the combined ratio exceeded 100%.
Tysers noted that North felt that diversification helped the Club to absorb their financial year contribution of $90m to Pool claims, incurred despite having no Pool claim itself in 2020. North pointed out that North “gave the Pool a battering in 2019”.
For the 2020/21 policy year, retained claims after 12 months were down $36m on the previous year. North felt that this was due to less activity during the pandemic. The Club saw a return to current trends towards the end of the year, and this had continued into 2021/22.
North achieved its best investment return for many years, at 6.67%. This produced $63m (net of a small revaluation of the Club’s land and buildings) and after adjustment for an $11m pension deficit, the Club delivered a net surplus for the year of nearly $7m, pushing free reserves to just over $450m.
Tysers termed this “not a bad year overall”, but said that it would be watching how the Club’s diversification developed over the next year. Tysers concluded that “we do feel we can expect a general increase for 2022 towards the top end of the scale”.
Figures include all lines of business All figures $’000
|Net Claims (incurred)||301,885||274,490||227,138||243,944||246,013|
|Net Underwriting Result||(45,004)||(68,150)||(12,688)||(15,081)||8,248|
|Gross Outstanding Claims||1,288,182||1,256,282||836,932||826,053||865,610|
|Average Expense Ratio||13.60%||13.70%||12.70%||12.10%||12.00%|