Skuld reports positive result and robust financial position

Norway-based marine insurer Skuld has reported a gain of $25m for financial year 2020/21 ending 20 February 2021, the same result as for the previous year. The combined ratio for 2020/21 was 108%.

The investment portfolio returned 9.8%. Skuld referred to “a strong level of performance from all commercial marine insurance products, including hull”. However, it accepted that “the underlying performance of the mutual portfolio remains a challenge which will continue to be addressed by the industry”.

As was the case for all Group Clubs, the biggest material impact was the performance of the International Group pool. Skuld said that this was not only for claims occurring in 2020, but also a result of prior year deteriorations.

No pool claims were reported by Skuld during 2020.

Skuld said that Covid-19 had contributed negatively to Skuld’s claims performance, with significant increases in claims activity being noted for people claims, as well as an increased level of FDD claims activity.

Skuld’s contingency reserves now stand at $459m.

Skuld president and CEO Ståle Hansen said that “at the end of an unprecedented and challenging year, I am very pleased with the positive result, and that we have kept the high levels of service for which Skuld is renowned. Skuld remains in a very robust financial position, as reflected by our contingency reserves”.

Hansen said that the 2020/21 P&I renewal saw Skuld cross the mutual gt mark of 100m. “Also, we increased our market share across all other lines of business, demonstrating again the success of Skuld’s diversification strategy”, he said.

However, Hansen insisted that mutual premium levels remained at an unsustainable level. “We will continue our strategic avoidance of imposing a general increase, but will retain our individual approach and seek selective, performance-based increases to bring our mutual business back into balance during 2021/22”, Hansen said.

Hansen expressed his appreciation to everyone who had contributed positively during the Covid-19 pandemic. “Our focus has continued to remain on keeping our service levels high. I am proud of the efforts and spirit that our members, clients and staff have maintained during this unique year”, said Hansen.