Skuld reports 9mo bottom line of $27m

Norway-based marine insurer Skuld has reported a bottom-line gain of $27m for the nine months to November 20th, up from $16m in the same period last year. The contingency reserve rose 15.6% year-on-year to $421m, a record.

Skuld president and CEO Ståle Hansen said that the first nine months had been challenging for some of its members, who had experienced major losses. “The number of small claims is low, but after nine months Skuld has experienced a few large claims and one confirmed pool claim. Hurricanes Irma and Harvey also had an impact on Skuld’s loss estimates although the effect has been limited compared with other insurers in the market”, Hansen said.

The major claims were partly offset by a positive contribution from Skuld’s commercial operations. At the end of Q3 the technical result amounted to minus $13m, equal to an overall combined ratio of 104%, but commercial activities delivered a combined ratio of 92%.

Net investment income was $40.2m equal to a 5.6% investment return. The gains were mainly driven by strong equity markets and lower interest rates. Skuld said that its long-term conservative investment strategy, with a majority in low-risk bonds, remained unchanged and would reduce volatility and ensure sufficient capital for sustainable growth in the future.