Swedish Club announces 4% discount to P&I Customers

Swedish Club has published its annual report for 2017. It said that its highlights included:

·       A 4% discount to P&I customers

·       A record year for entered tonnage

·       A balanced underwriting performance

·       A combined ratio of 104 %

The Club has set a 0% general increase in P&I for third consecutive year.

Calls and premiums for 2017 were $153.31m, down from $167.26m in 2016. Incurred net claims declined to $98.11m, from $102.96m the previous year. The actual bottom line was a gain of $18.81m, up from $11.84m. The combined ratio rose to 104.6%, from 98.4% in 2016. Free reserves rose to $213.47m, from $194.88m 12 months previously.

The number of vessels in P&I rose to 1,257 (February 20th 2018) from 1,155 12 months earlier, with gross tonnage increasing to 51.1m gt from 46.8m gt.

For FD&D, the number of vessels increased to 1,140, from 841 on February 20th 2017. Gross tonnage increased to 42.1m gt from 32.7m gt.

The Marine H&M insurance including offshore support vessels, as of January 1st, were at 2,606, down from 2.996 12 months earlier, Gross tonnage fell to 105.5m, from 119.3m.

Chairman Lennart Simonsson said that during 2017 “we saw improved rates in container shipping”; he said that “the economic data appears to favour a recovery in this segment”. He referred to “improvement” in the bulk carrier market, “probably the most solid segment of the shipping industry”. He said that, in the tanker sector, global oil production was stagnating, but demand for crude was expected to rise overall for 2017/18. Offshore, meanwhile, had been struggling for many years, “but may at last be helped to some sort of recovery as oil prices rise”, Simonsson said.

Managing director Lars Rhodin said that a combined ratio of 104%, matched to an investment return of 7.7%, was considered “acceptable”, given the squeeze in price levels across the industry