Skuld drops to $15m loss in 2021/22

Norway based marine insurer and Group Club Skuld has released its annual report, in which it confirmed a loss of $15m for 2021/21, down from a gain of $25m the previous year.

It said that the technical result had been influenced by large claims in Skuld’s own portfolio as well as several large Pool claims. Skuld reported one pool claim.

Skuld said that it had also been affected by Covid-19 related claims and increased average cost on people claims.

Gross earned premiums and calls increased by $29m compared to 2020/21, reaching $420m.

Mutual premiums were up 2.3% year on year, while commercial premiums rose by 13%.

Skuld said that mutual rates had not been sustainable for some time and that Skuld had started the work to bring the portfolio back into balance through improved rates for policy year 2022.

Volatility and fluctuations in the financial markets led to an investment return of minus 0.4%. The negative return was driven by rising yields and a strengthening of the US$.

The contingency reserve declined to $430m, from $459m 12 months earlier. The combined ratio improved a fraction, falling to 107%, from 108% the previous policy year.

$m 2021/22 2020/21 2019/20 2018/19 2017/18
TECHNICAL ACCOUNT          
Premiums and calls 419.5 390.8 390.8 401.6 412.7
Reinsurance premiums -54.1 -44.7 -47.4 -56.1 -57.4
Premiums for own account 365.4 346.1 343.4 345.6 355.4
Pool claims -31.2 -41.1 -24.5 -32.1 -28.2
Own claims for own account -286.7 -260.0 -264.3 -212.4 -223.4
Claims incurred for own account -317.7 -301.2 -288.8 -244.6 -251.6
Acquisition costs -59.9 -57.7 -70.5 -74.5 -78.6
Administrative expenses 18.3 -17.4 -19.3 -18.5 -19.6
Discontinuation defined benefit scheme 0.0 0.0 0.0 0.0 6.0
Net operating expenses 78.0 -75.1 -89.8 -92.9 -92.2
Balance carried to non-technical account -30.3 -30.1 -35.2 8.0 11.6
NON TECHNICAL ACCOUNT          
Balance from technical account -30.3 -30.1 -35.2 8.0 11.6
Net investment income 2.1 62.9 55.1 0.9 50.1
Taxes -13.2 -6.3 5.0 -0.5 -0.2
Other result components 0.3 -1.9 0.6 2.2 -3.9
Distribution to members 0.0 0.0 0.0 0.0 -9.6
Balance carried to contingency reserve -14.7 24.6 25.5 10.7 48.0

There were 34 major notified casualties in the year, with four significant wreck removal incidents.

Of the 298 employees (148 men and 150 women) the average age was 44, with an average of nine years with the company. At all levels (excepting CEO), the salary equality of women in 2021-22 was 70%.

https://www.skuld.com/contentassets/d505938bcb7949c0955b9387582b896a/skuld-annual_review_2021-22.pdf