Despite initial forecasts of a 104% combined ratio, The Swedish Club finished 2021 with a figure of 129%. Managing Director Lars Rhodin said that, within those figures, all classes except P&I were generally in balance.
Free reserves declined to $196.5m, from $231.4m.
Rhodin noted that the Club’s strong reserves were there to meet such volatility, noting also that a positive return on investment partly offset the underwriting deficit. He said that “inadequate P&I pricing is an industry-wide issue, as demonstrated in the results for most
International Group members. In announcing a 12.5% general increase, we are confident we have taken a significant step to close the gap.”
The total loss of the X-Press Pearl – a brand new container ship – was a high profile casualty,where the Club had the hull lead. The Ambition Journey bulk carrier was also a total loss after grounding on an uncharted rock in the Philippines. This was the first P&I pool claim in four years for the Club, noted Rhodin. “Suffice to say that the wreck removal was carried out swiftly – on time and on budget – reinforcing the Club’s unparalleled reputation for claims handling”, he said.
Covid-19 related claims doubled in number compared with 2020, but tripled in terms of cost, says Rhodin.
During 2021 the Club’s Marine portfolio grew by the equivalent of 18% in vessel numbers and there was also an 8% growth in P&I based on gross tonnage. Rhodin said that the growth had been according to plan.
Rhodin had strong words to say on the nature of social inflation, a combination of a society that showed no tolerance when there was a casualty, increasingly draconian rulings in the courts, government action, and demands/awards for higher compensation. “It is often a case of ‘find a scapegoat and punish’. The severity of claims when there is a major casualty is
so much higher now than it was in the past, driven by this social inflation”, he said, adding that “P&I clubs need to address this imbalance,because premiums are simply not at the level required to meet this kind of exposure.”
| Five year summary $m | 2021 | 2020 | 2019 | 2018 | 2017 |
| Earned premiums, gross | 193.1 | 173.8 | 157.4 | 146.1 | 153.3 |
| Earned premiums, for own account | 150.1 | 134.7 | 118.2 | 111.2 | 117.5 |
| Investment income, allocated from non-technical account |
– | 2.8 | 4.5 | 5.2 | 5.1 |
| Claims, for own account | -163.4 | -138.5 | -101.3 | -86.6 | -98.1 |
| Net operating expenses | -31.0 | -27.1 | -24.4 | -23.9 | -24.8 |
| Balance on technical account | -44.2 | -28.2 | -3.0 | 1.5 | -3.7 |
| Five year summary | 2021 | 2020 | 2019 | 2018 | 2017 |
| Loss ratio | 109% | 103% | 86% | 78% | 83% |
| Combined ratio | 129% | 123% | 106.4% | 99.3% | 104.2% |
The investment result of $9.9m compared with $33.9m in 2020.
| Insurance facts | 2022 | 2021 | 2020 | 2019 | 2018 |
| P&I incl charterer’s liability vessels (Feb 20th) |
2,375 | 2,230 | 2,247 | 1,913 | 1,890 |
| P&I incl charterer’s liability GT | 92 | 88 | 86 | 76 | 75 |
| FD&D vessels (Feb 20th) | 1,443 | 1,317 | 1,526 | 1,198 | 1,140 |
| Marine H&M (Jan 1st) vessels | 4,780 | 3.999 | 3.354 | 2,779 | 2,606 |
| Ins val $m | 154,500 | 106,542 | 98,691 | 77,175 | 76,460 |
| Of which club insured $m | 19,500 | 13,800 | 11,819 | 8,451 | 8,227 |
