Free reserves (all classes of business)
Standard & Poor’s Rating BBB+
Vessel type by tonnage
Vessel type by geography
KPIs, Note: items marked * are Group figures and include all business lines, not just P&I: $’000s
|Net Claims (incurred)||80,336||93,076||81,529||59,979||47,052|
|Net Underwriting Result||(14,188)||(36,143)||(28,538)||(6,977)||1,264|
|Gross Outstanding Claims*||395,139*||342,046||279,105||238,041||225,053|
|Average Expense Ratio||13.60%||12.60%||12.80%||13.20%||13.80%|
In 2022 an improved underwriting performance saw the combined ratio improve from 129% to 102% (all lines of business), which translated into a technical loss of just under $3m.
Marine was the main profit driver at 87% CR, with FDD at 102%. However, P&I was still at 116% (although much improved on the 159% of 2021).
Retiring Managing Director Lars Rhodin said in his final report that he was worried that, while there were fewer large cases, attritional claims were increasing, and that such losses were absorbing much more of the total premium than in the past.
Gross written premiums were up $33m to $226m, while claims were down $26m at $137m.
For P&I alone, premium income was up $20m at $124m, with claims down $13m to $80m. Allowing for reinsurance and operating expenses the P&I book had a technical loss of $14m.
Owned P&I tonnage declined by almost 3m GT to under 56m GT, while chartered tonnage increased by 3m to 37m GT.
Tysers said it was as a result “somewhat bemused” that underwriting director Tord Nilsson regarded 2022 as “a very good P&I year”. Tysers said that it was certainly a better year than 2021, but that “a combined ratio under 100% and some tonnage growth” would be needed to warrant a “very good” label.
The investment loss was $39m (minus 10%), and after tax and the cost of hedging operating costs from SEK to US$, free reserves fell by $46m to $150m.
The investment losses were suffered over the first nine months of the year and trended positively in the final quarter. Like other clubs there was a expectation of higher returns going forward due to rising interest rates.
New managing director Thomas Nordberg said that the Club had to maintain its reputation as “the friendly Club”. Nordberg also felt that, as shipping companies consolidated, these bigger companies might want something different from the Club. What worked well today might have to change for tomorrow. “We must not be afraid of reorganising ourselves to ensure we are in the best position for market developments”, Nordberg wrote.