The United Kingdom Mutual Steam Ship Assurance Association (Bermuda) Ltd
Manager – Thomas Miller
Standard & Poor’s Rating – ‘A’
Tonnage By Vessel Type
Tonnage By Area
Tysers congratulated UK Club on its “excellent investment return of 9.6%” which contributed $106m to the reserves. Elsewhere for the Club it was a quiet year. There was no tonnage growth, gross premium was down $17m to $305m and net incurred claims were stable at just over $250m.
The underwriting loss was $51m which, when combined with the investment return, meant that free reserves grew by $54m to $559m.
The combined ratio of 120% was the hghest for many years and, said Tysers, was “well outside the acceptable range”. A late deterioration on 2017 policy year claims and other deterioration in old occupational disease claims were reported as adding 10% to the combined ratio. UK Club has now protected the position on the latter by means of specific reinsurance. The Club has said that, with its conservative approach to claims estimating, the combined ratio was likely to improve over time as claims reserves were released.
The Club attributed its lack of tonnage growth to its disciplined approach to underwriting, with a refusal to quote on 12m gt of potential new business during the year. Tysers said that UK Club was “dropping clear hints that premiums must rise next year, and we shall be following closely the Club’s progress during the very different circumstances of 2020”. ■
|Net Claims (incurred)||251,707||250,941||225,700||273,619||241,252|
|Net Underwriting Result||(50,780)||(37,057)||36,432||(29,841)||19,316|
|Gross Outstanding Claims||957,030||984,145||986,236||924,537||969,305|
|Average Expense Ratio||11.28%||11.09%||10.31%||10.22%||10.28%|
All figures $’000