Marine insurer Skuld has booked a gain of $16m for the first nine months of the 2016/17 reporting year, to November 20th.
Skuld president and CEO Ståle Hansen said that Skuld had suffered a few large claims earlier in the year, which led to a small loss on the technical result ($3.1m), although this figure was better than the technical result at the half year point. The combined ratio for the year to date is running at 101%, compared with 95% for all of 2015/16, and 99% for each of the previous three years. This compares with a technical gain of $20.4m in the same period last year. A positive contribution to the contingency reserve raised reserves to $364m.
Net investment income for the nine months was $20m, mainly driven by strong equity markets, compared with net investment income of $0.8m in the same period last year. Although still significant, net investment income showed a deterioration compared with the six-month result of plus $34.8m. “Expectations for higher interest rates have had a negative impact on the USD-denominated part of the fixed income portfolio”, Hansen said, noting that Skuld had a long-term investment strategy with a conservative approach, which had “the ability to absorb changing market conditions.”
Premiums and calls for the first nine months were $292.6m, down from $308.5m in the same period last year.
Hansen said that Skuld continued to pursue a diversification strategy. Recently it acquired SMA/Gerling Norway team and its portfolio of marine hull business, which would continue under the name Skuld Marine Agency (SMA). The portfolio will begin to attach from January 1st 2017.
“The acquisition gives Skuld access to SMA/Gerling Norway’s hull & machinery book of business, which covers around 6.000 vessels paying some $40m in premium”, said Hansen. Skuld’s priority remains to ensure that all customers and brokers experience the same excellent service,” the insurer said.