Skuld’s Annual Report for the period 21.02.22 to 20.02.23, its first integrated annual report, has revealed a gain of $32m for the year ended February 20th 2023, with a positive technical result of $15m. The combined ratio improved to 97%.
“A strong 2022/23 renewal with portfolio growth in both mutual and commercial lines of business contributed to a growth in gross earned premiums and calls of $54m”, said Skuld, noting that this was partly offset by an increase in reinsurance premiums of $27m. Net premium rose year on year to $392m, from $365mi in 2021/22.
Net claims incurred fell to $287m, from $318m in 2021/22. “In general, 2022/23 was a benign claims year with a reduction of large claims compared to historical average”, said Skuld, noting that Covid-19 related claims were significantly reduced. This however was partly offset by a couple of larger Hull War claims in connection with the war in Ukraine.
Claims costs were significantly influenced by pool claims from other members of the International Group of P&I Clubs mainly driven by development on earlier years. Skuld reported no new pool claims this year.
Skuld said that “after a period of non-sustainable rates in the mutual book of business, there was a gradual improvement of technical result during 2022/23”.
It was “a challenging year for the investment portfolio”. This was due to rising yields, a strengthening of the dollar and weakening equity markets.
With a positive contribution from the sale of Asta, net investment income ended at $4.7m, up from $2m last year and representing a net investment return on financial assets of 0.3%.
Taxes amounted to an income of $14m in 2022/23, mainly driven by currency effects of tax balances in Norwegian Krone and negative results in the Norwegian Association. Contingency reserves now stand at $445m.
|Premiums and calls||473.3||419.5||390.8||390.8||401.6|
|Premiums for own account||392.0||365.4||346.1||343.4||345.6|
|Own claims for own account||-258.1||-286.7||-260.0||-264.3||-212.4|
|Claims incurred for own account||-287.2||-317.7||-301.2||-288.8||-244.6|
|Net operating expenses||-89.7||-78.0||-75.1||-89.8||-92.9|
|Balance carried to non-technical account||15.0||-30.3||-30.1||-35.2||8.0|
|Balance from technical account||15.0||-30.3||-30.1||-35.2||8.0|
|Net investment income||4.7||2.1||62.9||55.1||0.9|
|Other result components||-1.6||0.3||-1.9||0.6||2.2|
|Balance carried to contingency reserve||31.8||-14.7||24.6||25.5||10.7|
Claims opened 11,285
Notified casualties 42
Mutual premium growth of 12%, commercial premium growth of 13%
Net claims incurred
|Gross claims paid|
|Group pooling arrangements||31,317||25,044|
|Gross claims paid||352,592||299,191|
|Group pooling arrangements||-55,587||-33,325|
|Net claims paid||254,548||236,076|
|Change in provision for gross claims|
|Provision opening balance||917,595||690,573|
|Provision closing balance||1,107,176||917,595|
|Change in currency valuation at year end||22,248||17,195|
|Gross change in estimated outstanding claims||211,828||244,218|
Less movements in provision for reinsurers’ share
|Provision opening balance||-322,420||-160,636|
|Provision closing balance||-499,184||-322,420|
|Change in currency valuation at year end||-2,372||-858|
|Change in provision for future claims|
|Net change in claims provision||32,692||81,575|
|Claims incurred for own account||287,240||317,651|
Ståle Hansen, Skuld president and CEO, said that Skuld was “delighted to issue our first integrated annual report, combining a highly successful financial result while proudly presenting significant achievements in our work within ESG and sustainability.”