Norway-based marine insurer Skuld ended the first nine months of the 2018/19 reporting year (to November 20th) with a combined ratio of 101% compared with 104% in the same period last year. The mutual book of business recorded a reduced number of claims in the first nine months.
However, the result fell to a loss of $16m for the period, down from a gain of $27m for the same period last year. An increase in pool-able claims from other clubs negatively affected Skuld’s nine-month result.
Declining equity markets globally and increased interest rates impacted the bottom line.
However, the contingency reserve rose by $5m to $426m from $421m in the same period last year.
Skuld president and CEO Ståle Hansen, noted that Skuld’s solvency ratio remained on target. “For the third year in a row we are pleased to be able to support our members with a credit of 2.5% on individual mutual premiums. The credit was given back in the November payment instalment. In addition, a USD 5 million Members’ Performance Bonus allocated to eligible mutual members with a positive loss record was distributed in November 2018.”
Positive contributions from Skuld’s commercial operations, including Offshore and Charterers, were partly offset by the operations at Lloyd’s for the current incident year, which are still being affected by a few large claims early in the year, plus some deterioration on earlier years.
Hansen said he was confident that improvement measures initiated in 2018 would further strengthen the performance on Skuld’s commercial book of business next year.