Swedish Club achieved surplus in a tough year: Tysers

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: The Swedish Club

Self-managed

Gross Tonnage

Owned 56,000,000
Chartered 32,000,000

Free reserves (* All classes of business)

2021 231,431,000
2020 228,445,000
2019 203,838,000
2018 213,472,000
2017 194,880,000

S&P Rating  ‘A-‘

Tonnage By Type

Bulkers 40%
Container 30%
Tankers 18%
Other 12%

Tonnage By Geography

Asia 54%
Europe 44%
Middle East 2%

Swedish Club Managing Director Lars Rhodin described 2020 as an extraordinary year with extraordinary volatility, and was happy that by the end of it the Club had managed an overall surplus of $3m, pushing free reserves up to a record $231m.

As was the case with its Scandinavian neighbours, it was a good performance from the Marine & Energy lines which helped, coming in at a combined ratio of 100%. P&I booked a CR of 146% for P&I, with Rhodin commenting “I have never seen such a high volume of Pool claims notified in one month, as we did in August (2020).’

P&I premium was flat at $94m, while claims rose by $22m to $82m, of which $17m related to contributions to Pool claims, up from $14m in 2019.

The P&I technical loss was $28m, which Tysers felt “must be a worry”. However, an investment return of $31m pushed the Club back into surplus.

Tysers said that it was good to see some tonnage growth, with owned entries up by 6m to 56m GT, although chartered tonnage reduced by 4m to 32m GT.

Swedish Club hoped that 2020 would be regarded as “an outlier year” and fully recognized that, coming out of a soft market, price adjustments would have to be made. “We hope its members will agree”, said Tysers, while giving the Club due credit for managing a surplus “in a very difficult year”.

All figures $’000

Year 2021 2020 2019 2018 2017
Calls/Premium 94,115 93,268 90,485 95,362 104,113
Reinsurance Cost 27,381 25,827 27,300 27,390 25,096
Net Claims (incurred) 81,529 59,979 47,052 60,562 60,726
Operating Expenses 13,743 14,439 14,870 15,303 14,854
Net Underwriting Result (28,538) (6,977) 1,264 (7,893) 3,436
Gross Outstanding Claims* 279,105* 238,041 225,053 258,123 259,819
Total Assets* 632,583* 580,036 530,472 533,582 516,710
Average Expense Ratio 12.80% 13.20% 13.80% 13.40% 13.3%
Solvency Margin* 2.27* 2.44 2.36 2.07 1.99
Reserves/GT Ratio* $4.13* $4.57 $4.29 $4.18 $4.16

Note: items marked * are Group figures and include all business lines, not just P&I.