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
Free reserves (* All classes of business)
S&P Rating ‘A-‘
Tonnage By Type
Tonnage By Geography
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
|Net Claims (incurred)||81,529||59,979||47,052||60,562||60,726|
|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|
|Average Expense Ratio||12.80%||13.20%||13.80%||13.40%||13.3%|
Note: items marked * are Group figures and include all business lines, not just P&I.