Skuld reports “second-best result” ever in its history

Norway-based marine insurer Skuld has reported what it described as the second-best ever result in the company’s history. Skuld noted that it was “a challenging time for some of our members who have experienced major losses this year”. The number of small claims fell, but Skuld said that it had experienced a few large claims and two confirmed pool claims. The major claims were offset by a positive contribution from Skuld’s commercial side, and partly by positive adjustments on claims reserves on earlier policy years.

There were 15 large casualties, including two confirmed pool claims, six wreck removals and two major charter casualties. In total there were 8,692 claims cases opened in 17 legal jurisdictions.

Premiums and calls412.7389.7414.8411.2379.4
Reinsurance premiums(57.4)(58.1)(56.7)(63.6)(56.6)
Premiums for own account355.4331.6358.2347.6322.8
Claims incurred for own account(251.6)(229.1)(243.3)(259.1)(245.6)
Acquisition costs(78.6)(69.9)(70.1)(69.9)(58.8)
Administrative expenses(19.6)(18.6)(17.9)(17.9)(14.5)
Discontinuation defined benefit scheme6.
Net operating expenses(92.2)(88.5)(88.0)(87.8)(73.3)
Balance carried to non-technical account11.613.926.90.84.0
Balance from non-technical account11.613.926.90.84.0
Net investment income50.135.5(9.4)(13.3)27.1
Other result components(3.9)2.91.5
Distribution to members(9.6)(4.7)(4.9)
Balance carried to contingency reserve48.045.813.013.129.1

The combined ratio for the year was 97% (99% mutual, 95% commercial). Investment return equated to 7%.

President and CEO Ståle Hansen said that there were “still some challenging markets for parts of our commercial business. We are in a promising phase of improving the results of our syndicate, Skuld 1897 at Lloyd’s. We see that diversification works. We now offer a wider range of insurance products and cover a larger portion of the needs of our members and clients. Our commercial side continues to bring robust stability for our mutual owners.”

He added that Skuld would be launching a performance bonus which would reward members of more than 12 months with Skuld and where premium contribution was higher than own claims.

Hansen said that the company remained “cautiously optimistic for 2018/2019 admitting that the shipping and financial markets still pose challenges ahead. Skuld’s result and the cases handled over the year show that our size and stability cater for both the big casualties and the volatility in our markets.”