Skuld has reported a loss of $12m for the first nine months of 2019/20, compared with a loss of $16m for the same period of 2018/19, but the combined ratio was significantly higher.
Net investment income was $36.1m with buoyant equity markets and declining bond yields.
Skuld president and CEO Ståle Hansen said that “the nine-month technical result was again influenced by increased pool claims from other clubs, alongside several large own-claims within the club retention and prior-year deterioration. This activity contributed to a significantly lower technical result compared with the same period last year. The first nine months of the 2019/20 financial year show a combined ratio of 116%, compared to 101% for the same period last year. This clearly shows the need to bring the portfolio back into balance through improved P&I rates.”
Skuld’s Lloyd’s syndicate 1897, which was put into run-off earlier this year, had a negative impact in Q3. The hull and machinery business now written on corporate paper under the Skuld Hull brand made a positive contribution.
Hansen said that “in a challenging market, it is crucial for Skuld to continue its diversification strategy, and its strong focus on maintenance of a sustainable balance between financial strength, risk, and growth. This is key to reducing volatility for our members, and maintaining our strong foundation, thereby remaining a stable and robust partner for our members long into the future.
|MUSD||2019 (9 MONTHS)||2018 (9 MONTHS)|
|Premiums and calls||283.2||301.6|
|Premiums for own account||245.8||259.8|
|Claims incurred for own account||-226.8||-195.3|
|Net operating expenses||-65.6||-69.0|
|Balance carried to non-technical account||-46.5||-4.5|
|NON TECHNICAL ACCOUNT|
|Balance from technical account||-46.5||-4.5|
|Net investment income||36.1||-11.0|
|Balance carried to contingency reserve||-12.1||-15.7|