Tysers P&I Clubs Report 2022/23: Steamship Mutual

Managers     Steamship P&I Management LLP

Gross Tonnage


Free reserves


S&P Rating  A

Vessel typ by tonnage

General Cargo4%

Vessel type by geography

Far East42%
North America12%
Latin America1%

KPIs $’000s

Reinsurance Cost71,40050,90050,77348,38950,522
Net Claims (incurred)266,600245,500252.735218,027246,358
Operating Expenses53,40043,70040,30740,78041,623
Net Underwriting Result15,500(32,600)(59,410)529(31,842)
Gross Outstanding Claims1,025,8001,009,800955,538821,204827,408
Total Assets1,516,3001,526,1001,507,1971,381,7121,343,120
Average Expense Ratio12.80%12.40%11.90%12.10%12.40%
Solvency Margin1.481.511.581.681.62
Reserves/GT Ratio$3.88$4.30$5.32$5.83$5.46

Tysers said that it did not disagree with the assessment of retiring Chair Armand Pohan, who felt that during his tenure the Club had grown its reputation and had become a market leader.

Tysers said that the results for 2022 were “perfectly reasonable in the current political and economic climate”.

At 95.4%, the combined ratio was “a significant improvement on the previous two years at 113% and 125%”. The result was a technical gain of $15m.

Gross premium rose by almost $100m to $407m, while claims were up by $31m at $267m.

There were 59 large claims (i.e. in excess of $250,000) totalling $58m, similar to the previous year. Nine of these claims, including one over $1m, occurred on the Club’s substantial chartered entry.

Owned tonnage again increased, up by 7m to 117m GT. This followed an increase of 14m GT in 2021. The Club’s chartered book continued to grow and, at 113m GT, was almost the same as its owned tonnage and was the highest in the IG.

The investment loss was $35m, including a $5m hit due to a revaluation of the Club’s London building. As a result, free reserves fell by $19m to $454m, but this was termed by Tysers as “still a very healthy position”.

Tysers noted that Pohan had concluded his report with a warning. While the Club exceeded its objective of underwriting balance in 2022, the six-year average combined ratio was 108% and the positive 2022 result was due to the low activity on the Pool.

While the result might signify a period of premium stability, “the circumstances that led to the very high claims levels in 2020/21 and 2021/22 remain; and with inflation prevalent throughout the world economy there is no room for complacency”, Pohan said.

Tysers took this to indicate that it would take very little change in claims activity during 2023 for the Club to require a further general increase for 2024.

S&P recently changed its outlook for the Club from negative to stable, but also observed that its A rating was unlikely to improve further unless the Club diversifies.