Skuld reports positive nine-month result in benign claims environment

Skuld has reported an overall gain of $13.4m for the first nine months of the 2022/23 financial year (ending February 20th 2023), an improvement of $33.9m when compared with the same period last year, when a loss of $20.5m was recorded

The technical result also continued the positive development from the half-year, ending the third quarter to November 20th at $21.6m (9mo 2021, minus $51.7m), with an overall combined ratio of 94%. This was driven by a positive contribution from the commercial book of business.

Gross premium and calls ended at $350.5m, up by $41.5 compared with the same period last year. There was growth both in the mutual and commercial lines of business.

As was the case at the half-year point the nine-month result was characterized by a benign large-claims environment when compared with the same periods in the previous year.

During the first nine months there was a gradual improvement in the technical result of mutual products, but the combined ratio remained above target. When expectations of inflation increases and an uncertain claims environment were added to this, Skuld said that there remained “a need for further rate improvements for the mutual portfolio”.

Net investment returns, (-$19.4m), were at minus 1.5% for the quarter, compared with last year’s 9mo figure of plus $25.5m. Skuld noted that “markets across asset classes were highly volatile, and central banks in developed markets continued their tightening course, trying to calm labour markets and dampen inflation”.

“Notwithstanding a relatively benign claims environment, global inflation is likely to impact claims costs negatively as we move into 2023, and we need to remain mindful of accuracy in pricing and selective underwriting”, said Skuld, adding that “our efforts to ensure balance in the mutual portfolio will continue”

Ståle Hansen, Skuld president and CEO, said that Skuld was “in a very robust financial state”.

Consolidated income statement November 20th 2022 November 20th 2021
Technical account $USm $USm
Premiums and calls 350.5 309.0
Reinsurance premium -53.4 -41.7
Premiums for own account 297.1 267.3
Pool claims -26.2 -32.0
Own claims for own account -183.3 -229.6
Claims for own account -209.5 -261.6
Acquisition costs -51.4 -43.9
Administrative expenses -14.5 -13.5
Net operating expenses -65.9 -57.3
Balance carried to non-technical account 21.6 -51.7
Balance from technical account 21.6 -51.7
Net investment income -19.4 25.5
Taxes 11.2 5.6
Balance carried to members’ funds 13.4 -20.5