S&P Rating BBB+
Vessel type by tonnage
|Cargo / reefers||10%|
|Ferries / Passenger||10%|
|Net Claims (incurred)||187,687||210,065||239,511||156,726||169,668|
|Net Underwriting Result||7,977||(32,093)||(80,361)||(13,153)||(26,026)|
|Gross Outstanding Claims||727,797||686,834||757,465||548,719||567,069|
|Average Expense Ratio||15.89%||15.06%||14.60%||14.60%||14.68|
Tysers noted that West appeared happy with what could be described as “a reasonable set of results for 2022/23”. Chair F.G. Sarre had said that he commenting he was pleased to be able to report the best result since 2017.
A combined ratio of 96.7% (from 114% the year before) and an underwriting surplus for the year of $8m, said Sarre, pointed towards “a strengthening financial position and are a further validation of the robust actions your Board has taken across recent renewals to ensure that the Club is in a strong position to meet the financial and geopolitical challenges we all face”.
Gross premiums rose by $26m to $293m and claims were down $22m at $188m. Owned tonnage grew by nearly 6m to 96m GT, and chartered tonnage grew by a similar amount to more than 50m GT.
There was an investment loss of $28m, meaning that free reserves dropped from $251m to $231m. Tysers noted that, while the Solvency Capital Ratio improved from 163% to 176%, free reserves per owned GT dropped from $2.79 last year to $2.40, one of the lowest in the International Group.
“With investment markets remaining volatile, it is essential the Club maintains its recent underwriting discipline”, said Tysers.
The broker said that West had provided no figures regarding its diversification strategy, which includes new products such as Hull and Offshore, as well as cyber risks and delay cover available through its partnerships with Astaara and Nordic.
“We imagine the Club is following its traditional conservatism and treading very carefully and slowly into these new areas”, said Tysers.
The broker concluded that West was “a very likeable Club that looks after its members well, and we think it will accept it is still at an early stage as it seeks to develop its financial security and product range”.