The Swedish Club reported at its Q1 2019 board meeting that it had continued to deliver a robust underwriting performance and preserve strong capital adequacy in 2018, amid what it described as “challenging market conditions”. The combined ratio for the year was 99%.
Investment was termed to have been “very volatile”. The fall of equity markets in December generated a negative investment return of 1.6% for the calendar year. It was noted that the investment loss was completely recovered by the end of January 2019.
Profits on the underwriting side covered, in part, the investment loss, but the overall result came to a deficit of $5.2m before the P&I discount of 5%. The Club said that it had retained an increase in members and volume at the 2019 renewals.
The Club’s enterprise risk management (ERM) capabilities helped mitigate the volatility experienced in 2018.
Lars Rhodin, Managing Director of The Swedish Club said that “despite a market dominated by soft pricing and tough investment conditions, The Swedish Club emerged from 2018 with healthy results.
“The Club reinforced its reputation for consistent underwriting performance, ranking among the top performers in the International Group by maintaining an average combined ratio of 98% over the past 10 years,” said Rhodin.
“The S&P ratings upgrade was a recognition of what we believe we already had in place – quality members, dedication and a commitment to excellent service from the whole organisation.”
The Board meeting was held in Hong Kong.