Tysers 2020 Marine Liability Report – The Clubs: #8, Skuld

Assuranceforeningen Skuld – Self-managed

Standard & Poor’s Rating – A

Tysers noted that 2019/20 policy year was the first time in 16 years that Skuld had reported a combined ratio more than 100%. Across all business lines the ratio was 109%, but P&I recorded 119%. For commercial business the CR was a “creditable” 100%.

The result was affected by run-off costs relating to the closure of the Club’s Lloyds Syndicate. Skuld Hull apparently got off to a profitable start, enjoying the fruits of a hardening market and reduced capacity.

CEO Stale Hansen has said that P&I rates need to rise –“our technical result continues to show a clear need to bring the premium levels into line with risk”.

Gross premium reduced from $402m to $391m, and only around 45% of this was mutual premium, with the balance from commercial lines, including fixed charterers P&I, which remained steady at $54m.

Owned mutual tonnage saw a small increase to 93m gt. Net incurred claims rose from $245m to $289m due to an increase in larger claims, but none was big enough to hit the Pool.

The overall underwriting deficit was $35m, but an investment return of 5.5% produced $55m. A tax benefit of $5m resulted in an overall surplus of $25m, but because of  interim tax rules requiring reclassification of 25% of free reserves as “deferred cessation tax” pending implementation of new Norwegian tax regulations for mutuals in 2020, free reserves were shown as having increased by $13m to $466m.

Tysers said that it had long argued that size brings substantial benefits to the P&I sector. It noted that Hansen shared the same view, concluding that “Growth is important to Skuld, as scale of business reduces the exposure our members might otherwise have to volatility and costs. To stay relevant for the ocean industries that we serve, we are constantly looking for new products and services that we may offer, and new business segments and geographical areas we may serve. Our global Skuld team is well prepared for the future”.

Gross Tonnage

Owned 93,000,000
Chartered N/A

Free reserves

2020 465,845,000
2019 452,723,000
2018 442,026,000
2017 394,075,000
2016 348,230,000

Tonnage By Vessel Type

Bulkers 35%
Tankers 39%
Containers 13%
General Cargo 5%
Other 8%

Tonnage By Area

Europe 23%
Asia 43%
Nordic 24%
Americas 5%
Other 5%


Year 2020 2019 2018 2017 2016
Calls/Premium 390,760 401,621 412,739 403,235 409,980
Reinsurance Cost 47,361 56,070 57,363 71,636 56,663
Net Claims (incurred) 288,842 244,577 251,580 229,143 243,276
Operating Expenses 89,775 92,937 92,224 88,510 87,971
Net Underwriting Result (35,219) 8,037 11,572 13,946 22,071
Gross Outstanding Claims 801,897 875,663 925,721 617,049 583,921
Total Assets 1,067,131 1,040,143 1,070,091 1,000,465 918,602
Average Expense Ratio 13% 12.80% 12.70% 12.80% 12.80%
Solvency Margin 1.33 1.19 1.16 1.62 1.57
Reserves/GT Ratio $5.01 $4.93 $4.73 $4.34 $4.24

All figures are Group figures including all business lines, not just P&I.

All Figures $’000s