Norway-based marine insurer and group club Skuld today has reported a technical loss of $15m for financial year ending February 20th 2022.
The combined ratio was 107%, an improvement on 2020/21. Skuld also reported a negative investment return, noting that “volatility and market fluctuations in the financial markets led to an investment loss not sufficient to cater for the overall cost of claims and the club’s underwriting result landed on minus $30m”.
The insurer said that the year’s result reflected “another extraordinary year” in which Covid-19 influenced the whole sector. “As we entered the 2021/22 policy year, marine insurance was weighed down by a general pricing imbalance and premium levels were insufficient to cover the rising cost of pool and club claims.”
Skuld said that its financial and solvency position was strong, with the contingency reserve now at $430m. Skuld noted that it remained “well above all regulatory solvency requirements and is aligned with its own stricter internal solvency targets as set by the Board”.
Skuld president and CEO Ståle Hansen said that “behind us lies another extraordinary year. The Covid-19 crisis has had many consequences for the insurance sector and ocean industries. In response, we met the February 2022 renewal targets agreed by Skuld’s board and achieved the mutual P&I premium adjustments necessary to restore balance”. However, Hansen noted that “despite that work, the generally hardening market alone is insufficient to maintain balance. We are intent upon bolstering Skuld’s robust financial position, so our diligent work to optimise our portfolio and return to positive underwriting results continues. Keeping service levels high for our membership and clients also in challenging times is always a priority for Skuld”.
He reported that “positive contributions” from commercial operations had continued.