Standard Club has reported a combined ratio of 104% for the 2017 policy year (including its share of the Standard Syndicate but before the return of call on the 2017 policy year). It said that its five-year average combined ratio was now 98%, which it said was well within the board tolerance of 105%.
The investment portfolio returned 6.4% against the benchmark in what was described as “challenging markets”, helping the Club to deliver an overall surplus of $31m and to increase in free reserves by 7%, from $430m to $461m.
Standard Club noted that the 7% increase in free reserves tracked closely the growth in tonnage, which also increased by 7% to 159m gt from 149m gt year on year. mostly a result of organic growth with members adding tonnage, but also partly a result of new members joining both during the 2017/18 policy year and at renewal.
The Club noted that the first three years of the Standard Lloyd’s syndicate had been “more challenging than predicted”, with very difficult trading conditions being faced, not least the three major hurricanes in 2017, Harvey, Irma and Maria.
The Club said that it was pleased to note that actions had been taken during the past year to improve the Syndicate’s performance, including recruitment to strengthen both underwriting and operational capabilities, and further diversification of the portfolio, and that this was “starting to deliver measurable results, with the syndicate’s business plan for 2018 targeting profitable underwriting”.
The Club said that the syndicate was “already ahead of its targets in terms of premium written since January 1st, and claims activity remains relatively benign”.
P&I CLASS
2015/16 policy year was closed, and there would be no further calls on members.
For 2016/17 policy year a modest underwriting surplus was forecast. No further calls were expected to be necessary.
For 2017/18 policy year a modest underwriting surplus was forecast. Apart from the final instalment of the estimated total premium, which is due on 1 November 2018, no further calls were expected to be necessary.
Standard Club said that it continued to have “a high degree of confidence in the financial strength of the club and future call stability”, and that as a result release calls were amongst the lowest in the International Group, with the release call percentages being set at 0%, 0% and 6% of estimated total premium for the three open policy years of 2016/17, 2017/18 and 2018/19.
DEFENCE CLASS
2015/16 policy year was closed, and there would be no further calls on members.
For the 2016/17 and 2017/18 policy years, claims had developed better than forecast, with both years recording an underwriting surplus. No further premiums were expected to be necessary.
The release call percentages for the three open policy years are the same as for the P&I Class.
STANDARD LONDON CLASS
2015/16 policy year was closed, and there would be no further calls on members.
The 2016/17 and 2017/18 policy years were said to be performing satisfactorily. No further premiums were expected to be necessary.
The release call percentages are 0% for all open policy years. “These low levels of release calls reflect the board’s confidence in the financial position of the class and future call stability”, the Club said.
WAR RISKS CLASS
The 2015/16 policy year was closed with no further premiums expected to be necessary