Broker Tysers has now released its annual assessment of the P&I Market and, in particular, the International Group Clubs. IMN will be summarizing the individual clubs over the coming days, concluding with a combined summary of the club’s financial performances, conditions, rankings, ratings etc.
Today: Steamship Mutual Underwriting Association Ltd
Managers: Steamship P&I Management LLP
S&P Rating ‘A’
Tonnage By Type
Tonnage By Geography
Tysers said that it was not surprising to see Steamship Mutual Chairman Armand Pohan prefer to highlight another solid investment return of $54m and an average combined ratio for the last six years of 99%, rather than the underwriting performance for 2020/21, which saw a combined ratio of 125% and an underwriting loss of $59m.
The broker observed that “this performance was due to Pool claims and to the necessity to take a conservative approach towards projected pandemic claims”. Overall, the Club was thought to be probably quite happy with a reduction in free reserves of just $4m to $511m, which remained in a very healthy position.
Tysers praised the Club’s decision not to make a capital distribution this year, in order to accommodate potential volatility.
Gross premium fell by $25m year on year to $284m. Tysers imagined that to a large extent this was due to inactivity in its large passenger vessel sector, “where the Club did its utmost to help cruise operators through very difficult times”.
Net incurred claims rose by $35m to $253m, while prior year releases of reserves were less than budgeted, due to adverse developments on two large claims.
For the 2020/21 policy year, Covid net retained claims totalled $27m and included two claims on cruise vessels which hit the Pool, although the Club’s exposure was limited as the insurance was on a quota share basis.
The Club suffered one further Pool claim, relating to pollution consequent on the loss of containers overboard.
After four years of little growth, Tysers felt that Steamship would be pleased that owned tonnage last year increased by 8m to 96m GT, while its substantial chartered entries grew from 68m GT to 81m GT.
Tysers said that it was somewhat surprising that the Club was still only in 9th place in the IG on owned tonnage.
All figures $’000
|Net Claims (incurred)||252.735||218,027||246,358||241,369||168,455|
|Net Underwriting Result||(59,410)||529||(31,842)||(38,710)||41,935|
|Gross Outstanding Claims||955,538||821,204||827,408||830,826||765,386|
|Average Expense Ratio||11.90%||12.10%||12.40%||12.20%||12.10%|