Transport and logistics provider TT Club has reported a combined ratio of 87% for financial year 2018, down from 97% the previous year. Gross earned premiums rose to $195.0m from $181.8m, while the surplus grew to $16.5m, from $7.3m in 2017. A.M. Best has affirmed its A- (Excellent) rating for the club.
Total assets grew to $619.3m, from $597.6m 12 months previously. Similarly, total surplus and reserves rose to $209.5m, from $193.1m.
TT Club chairman Ulrich Kranich, said that “it has been a good year for the Club, although 2018 was another difficult year for the insurance industry”.
He said that the major hurricane-related industry loss events in 2017 did not significantly impact TT Club and he was “pleased to say this was repeated in 2018”.
The Club was involved with two large events – Maersk Honam and Hurricane Michael. The gross cost of Hurricane Michael to the Club was just over $5m.
Kranich added that “in spite of the premium environment being on the whole challenging, the Club’s premium income grew in 2018. The volumes declared by Members were higher than in recent years, new business was good and retention remained high. Notably, premium growth was achieved without the addition of single large accounts and the balanced growth targeted and achieved in recent years has continued.
He said that claims performance generally, aside from the major events, was as expected for the 2018 policy year, while claims for the prior years performed significantly better than expectations.
Investment markets were challenging in 2018, said Kranich, “particularly in Q4 when equity markets fell substantially”.
The Club had budgeted to make a return of 2%, which was up on recent years and predicated in interest rates in the US increasing. In face the Club returned 1.32%, which Kranich said was a good return given the fact that the Club’s portfolio contained a portion of equities in order to maintain the right balance between risk and return.
Note: TT Club consists of Through Transport Mutual Insurance Association Ltd (TT Bermuda, or TTB) and TT Club Mutual Insurance Ltd (TTI). TTB controls 75% of the voting rights of TTI, with TTI’s policy holders controlling the remaining 25%. The Group operates as a single business, with 95% of policies of insurance issued by the group written by TTI. All mutual policyholders of TTI are members of TTB and therefore the policy holders hold all voting rights of TTB and the Group (TT Club). It is managed by Thomas Miller.