Steamship Mutual Underwriting Association Ltd
Managers – Steamship P&I Management LLP
Standard & Poor’s Rating – A
Tonnage By Vessel Type
Tonnage By Area
Tysers noted that Steamship Mutual had turned around quickly the disappointing results for 2018/19, producing “what it correctly describes as a market-leading performance for 2019/20”.
A combined ratio just on the right side of 100% (i.e. underneath) and net investment income of $64m saw free reserves grow to $515m, after a capital distribution to renewing members of $16m.
The Club has now returned capital totalling $90m over the past four years.
Owned gross tonnage (gt) grew by 2.8m gt to 88.4m gt, but chartered tonnage reduced from 74m gt to 68m gt due to the loss of one substantial account. This meant that total tonnage reduced from 160m gt to 156m gt.
Gross premium was up $2m at $309m, while net incurred claims reduced by $28m to $218m. The Club suffered 54 claims in excess of $250,000, down from 67 in the previous year although the total value of these claims remained similar at $106m. There were three claims that were large enough to hit the Pool.
Claims on the Club’s substantial chartered book reverted to more normal levels, with four large claims totalling $3m compared to 15 totalling $42m in 2018/19.
Tysers observed that chairman Armand Pohan had warned that the Club’s reserves might be adversely impacted in 2020/21 by the consequences of Covid-19. The broker said that the Club’s large cruise ship portfolio likely would have had its fair share of claims. There would also perhaps be an impact on premium income because many cruise ships have been laid up and several had been sold.
Pohan said that “the Club accumulates reserves in order to absorb and help shield its members from all kinds of financial shocks, including those that are unexpected”
Tysers expected Steamship Mutual to weather the storm of 2020 quite comfortably “and, despite its obstinate monoline conservatism, it remains an attractive option”.
|Net Claims (incurred)||218,027||246,358||241,369||168,455||167,930|
|Net Underwriting Result||529||(31,842)||(38,710)||41,935||76,172|
|Gross Outstanding Claims||821,204||827,408||830,826||765,386||908,028|
|Average Expense Ratio||12.10%||12.40%||12.20%||12.10%||12.10%|
All figures $’000