Tysers 2020 Marine Liability Report – The Clubs: #11, Swedish Club

The Swedish Club – Self Managed

Standard & Poor’s Rating – ‘A-‘

Gross Tonnage

Owned 50,000,000
Chartered 36,000,000

Free reserves*

2020 228,445,000
2019 203,838,000
2018 213,472,000
2017 194,880,000
2016 183,074,000

*All classes of business

Tonnage By Vessel Type

Bulkers 45%
Container 38%
Tankers 14%
Other 3%

Tonnage By Area

Asia 53%
Europe 44%
Middle East 3%

Tysers noted that Swedish Club managing director Lars Rhodin was “justifiably satisfied with the Club’s results for the 2019 calendar year”.

A combined ratio of 106% across all lines of business was well below the International Group average. The technical loss of $8m was more than compensated by an investment return of 9.7%, which produced $32m. That helped free reserves grow by $24m to $228m.

The combined ratio for the P&I class was 110%, with gross premium of $93m and net incurred claims $63m, including $14m of Pool claims from other Clubs. Swedish Club itself had no claims excess of its $10m retention.

The FDD combined ratio was 100% and Marine & Energy was 102%.

Owned tonnage grew by 2.5m gt to 50m gt, while chartered tonnage rose by 5m gt to 36m gt.

Rhodin has said that he was proud of the Club’s loss prevention initiatives, with Maritime Resource Management and Emergency Response Training now joined by the new Trade Enabling Loss Prevention (TELP). The TELP system was fully launched in 2020 and used AIS technology to track members’ vessels and automatically identify any that are moving towards an area the Club has identified (through its own claims statistics) as being of particular risk. The Club can then generate tailored advice which is sent out to the member before arrival.

Swedish Club has said that “large P&I incidents are all about ‘location, location, location’ – that, and the availability of equipment to respond, is what determines response cost.”

Tysers noted that, like Gard, Swedish Club felt that the International Group could do more and wanted to see shipowners benefiting from improved sharing of claims data.

Year 2020 2019 2018 2017 2016
Calls/Premium 93,268 90,485 95,362 104,113 109,958
Reinsurance Cost 25,827 27,300 27,390 25,096 26,755
Net Claims (incurred) 59,979 47,052 60,562 60,726 60,482
Operating Expenses 14,439 14,870 15,303 14,854 14,523
Net Underwriting Result (6,977) 1,264 (7,893) 3,436 8,198
Gross Outstanding Claims* 238,041 225,053 258,123 259,819 237,936
Total Assets* 580,036 530,472 533,582 516,710 510,744
Average Expense Ratio 13.20% 13.80% 13.40% 13.3% 13.30%
Solvency Margin* 2.44 2.36 2.07 1.99 2.15
Reserves/GT Ratio* $4.57 $4.29 $4.18 $4.16 $4.19

Note: items marked * are Group figures and include all business lines, not just P&I.

All figures $’000