Skuld nine-month result indicates need for improved P&I rates, says CEO Hansen

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
Reinsurance premiums -37.4 -41.7
Premiums for own account 245.8 259.8
Claims incurred for own account -226.8 -195.3
Acquisition costs -51.5 -55.8
Administrative expenses -14.1 -13.3
Net operating expenses -65.6 -69.0
Balance carried to non-technical account -46.5 -4.5
Balance from technical account -46.5 -4.5
Net investment income 36.1 -11.0
Taxes -1.7 -0.1
Balance carried to contingency reserve -12.1 -15.7