The world’s largest marine insurer, Norwegian Gard, reports its largest revenue figure on record in a challenging year heavily impacted by large claims and challenges related to the coronavirus pandemic.
Marine insurer Gard reports revenue of USD 1.036bn – the highest on record – according to its financial report. However, the CEO does not hide the fact that the year has been greatly impacted by major claims and issues following the pandemic.
Gard’s net result for the year ended with USD 34m on the bottom line.
”In spite of a turbulent year, however, Gard has managed to deliver extraordinary results … a clear vote of confidence in the services, insights, and expertise we provide. Strong results from fixed price P&I and our Marine and Energy book also mean that the group can deliver a robust profit and a net combined ratio of 94 percent – strong achievements given the circumstances,” Gard CEO Rolf Thore Roppestad comments in the annual report.
Challenging year
Despite the result being lower than the year before when the insurer reported a profit of USD 68m, the company managed to close the year with black numbers on the bottom line instead of red.
Some of these claims reached unusually high levels, partly as a result of delays and logistical difficulties presented by the pandemic.
Rolf Thore Roppestad, CEO, Gard
”Looking back at the financial year 2021, we got off to a challenging start, with significant outgoings resulting from a number of big claims. Some of these claims reached unusually high levels, partly as a result of delays and logistical difficulties presented by the pandemic,” Roppestad says, and adds:
”There was also a continuous inflow of claims linked to the crew, many of which were caused by the pandemic. These claims ranged from sick pay and hospitalisation to, in the saddest cases, covering expenses related to deceased seafarers.”
This was not the case for another Norwegian marine insurer, Skuld, which reported a deficit of USD 30m. Skuld also pointed to the pandemic as a factor impacting the year and its operations.
”Volatility and market fluctuations in the financial markets led to an investment loss not sufficient to cater for the overall cost of claims and the club’s underwriting result landed on USD -30 million,” Skuld’s report stated, as previously reported by WPO.
Looking ahead
Roppestad states in his comment on the annual report that the current situation with supply chain disruptions, increasing energy prices, trapped vessels in the Black Sea and sanctions that are difficult to navigate means that ”we find ourselves in turbulent waters.”
However, the CEO looks to the future and hopes that the world will, during this year, see ”more, not less, global trade and integration.”
