Skuld has reported a positive bottom line result of $25m for the 2019/20 financial year ending February 20th, up by 127% from the $11m gain recorded in 2018/19). The combined ratio for 2019/20 was 109%, up from 98% in 2018/19.
The positive 2019/20 bottom line was supported by particularly strong investment returns towards the end of the year. Global investment market volatility favoured Skuld’s investments, generated a return of 5.5%.
Skuld said that, on the mutual book of business,” the company’s technical result continued to show the clear need to bring premium levels into line with risk”.
Skuld’s commercial marine liability, as well as Skuld Hull underwriting, also contributed positively to the overall result.
There were a number of mid-sized claims and some large claims that led to Skuld’s first negative technical result in 16 years. Skuld reported no pool claims on its own mutual book, but covered the share of those made by other clubs. It said that it continues to support the efficiency gains achieved through its membership of the International Group.
The 2019/20 result was also impacted by one-off costs associated with previous year closure of Skuld’s Lloyd’s syndicate 1897.
Skuld’s contingency reserves stand at $466m, up from $453m 12 months previously.
Skuld president and CEO Ståle Hansen said that “at the end of a challenging 2019/20 financial year, I am very pleased with the positive result. We remain in a robust financial position as reflected by our contingency reserves. The 2020/21 P&I renewal was firmer than in previous years and, having witnessed a decade of rate depreciation driven by market competition and a well-capitalised P&I industry, we will continue to do our best to support members by offering competitive rates. However, our technical result shows the clear need to bring premium levels into line with risk.”
Skuld remained well above all regulatory solvency requirements and said that it was aligned with its own stricter internal solvency targets as set by the Board.
Previous year annual report is at: