Shipowners’ Club has reported a combined ratio of 96.2% for the first half of 2022, “in line with budget”.
An underwriting gain of a $4.3m was the result of an 8% growth in earned income compared to same period last year and a 2% reduction in overall claims costs. Shipowners Club financial year runs from January to June rather than in alignment with the policy year that starts February 21st.
The Club said that “these positive variances have been sufficient to more than absorb higher expected costs in the areas of reinsurance (due to a hardening market) and operating expenses (as we emerged from Covid-19 lockdowns)”. The Club said that it remained well-capitalized as of June 30th, with $335.5m of net assets.
The Club has an A (stable) credit rating from Standard & Poor’s.
Financial summary:
The Club reported a 99% retention rate at the 20 February 2022 renewal. Gross earned premium at the half year point was up $9.8m on 2021.
Shipowners’ Club CEO Simon Swallow said that “the Club sits in a healthy position at the half-year stage. Whilst investment returns have been impacted by ongoing global uncertainty, the underwriting result remains cautiously encouraging, notwithstanding the impact of inflation which we monitor closely. Whilst the frequency of COVID-19 claims may have abated, we are starting to see an increased frequency in other claims, testimony to the fact that, encouragingly, Members’ operations are starting to pick up post-pandemic.”
