Skuld books strong gain, although combined ratio creeps up

Norway-based marine insurer Skuld had reported a combined ratio of 98% for 2016/17 financial year to February 20th, up from 95% in 2015/16. The bottom line result of $51 compared with a gain of $18m in 2015 (before a members’ credit of $5m).

Gross earned premium in 2016 was $403m, fractionally down from the $410m booked in the previous financial year.

The return on investments was 3.4%, compared with a return of minus 1.6% in 2015/16. There was a particular strong performance in the equity portfolio towards the end of the policy year, which helped boost the $16m nine-month result to a full-year figure more than three times higher.

Skuld said that it had experienced a few large claims but that “over the year the frequency of regular claims remained low”. Reported pool claims from the International Group had also been low, which Skuld said reflected “a generally small level of large claims over the year”.

As was the case last year, the deduction of members’ premium credit, totalling $5m, will be returned to Skuld’s mutual members in 2017, leaving $46m to be transferred to Skuld’s contingency reserves. Skuld’s contingency reserves have reached a record high of $394m.