P&I book boosts Skuld H1 numbers

Norwegian-based marine insurer Skuld has reported a bottom-line result of $14m for the first half of the 2018/19 policy year, up from $8m for the same period last year.

Skuld said that the result mainly derived from Skuld’s P&I book of business, and a low number of reported claims from members.

Written premium decreased slightly year on year due to de-selection and rates pressure.

Net investment income for the period was $4.6m (down from $30.3m) Increased interest rates had had a negative impact on Skuld’s fixed income portfolio, but were offset by positive currency effects.

Skuld said that its long-term investment strategy remained unchanged, with a majority weighting in low-risk bonds to reduce volatility.

One pool claim had been reported so far this policy year. The combined ratio at the half year is 95%.

Skuld president and CEO Ståle Hansen said that “we are very pleased with this result, particularly given the challenging environment in which we are operating. In a market with these pressures, it is crucial for Skuld to continue its diversification strategy and our strong focus on maintaining a sustainable balance between financial strength, risk and growth. This is key to reduce volatility for our members…”

He added that, “as a token of our appreciation and given our positive underwriting result, we will continue to return a premium credit to all mutual members, which, following the AGM approval, will be effectuated in November. In addition, we have launched the Skuld performance bonus which rewards members with more than 12 months in Skuld and with a premium contribution higher than own claims.


US$ Millions 2018 (6 MONTHS)2017 (6 MONTHS)
Premiums and calls191.8194.6
Reinsurance premiums(25.9)(-32.1)
Premiums for own account165.9162.5
Claims incurred for own account(109.9)(140.4)
Acquisition costs(37.6)(34.8)
Administrative expenses(9.3)(9.4)
Net operating expenses(46.9)(44.3)
Balance carried to non-technical account9.1(22.2)


Balance from technical account9.1(22.2)
Net investment income4.630.3
Balance carried to contingency reserve13.77.8