Strong investment return at 11mo, Covid impact “in line with projections”, says Steamship

After a Steamship Mutual virtual Board meeting on February 2nd the club has stated that projections for the 2020/21 and 2021/22 policy years included prudent provisions for the impact of Covid upon claims and premiums. In the current year 2020/21 the development of incurred Covid claims had been in line with expectations.

Steamship said that “the Managers have focused throughout the year upon providing support to Members in their response to the pandemic, including a programme which offers free of charge support to crewmembers in respect of their mental health and general well-being”.

After nine months, of the 2020/21 Policy Year the Club’s own incurred claims, including Covid-19 liabilities, remained marginally higher than at the same point in 2019/20. IG Pool claims remained higher after nine months than in any previous year. This was largely attributable to the high level of losses reported in the first six months of the year.

The Club’s prior-year claims had developed broadly in line with original projections, but this had been offset by adverse Pool claims development in the 2019/20 policy year. This had been reported previously by Steamship last October.

On the investment side, for the 11 months to January 2021 the Club’s investment return had been significantly higher than originally projected.

Given the high levels of claims on the Pool presented by IG Clubs over the past two years, the projected combined ratio for the current 2020/21 financial year remained above 100%.

The Board once noted the Club’s continuing financial strength and capital position as affirmed by the Standard & Poor’s A (stable) rating. The Club’s capital was projected to remain comfortably above the AAA requirement.

The Club’s combined owned entry as of January 20th was 91m gt with a combined owned and chartered entry of ….