The TT Club
, a provider of insurance and risk management services
to the international transport and logistics industry, has reported another successful year for its financial year 2003. In its annual report to its Members, the Board highlighted improvements in the
strength and quality of the balance sheet as well as the policy year
combined ratio - the underlying operating performance.
On the balance sheet, the Club reported
a 14% increase in the total surplus
and reserves to US$57.3 million, while total assets at US$386.5 million (up
18% from US$326.3 million) were at their highest for five years. Net worth
increased 10% from US$62.8 million to US$69.3 million.
The Club's gross premium income declined marginally to US$149 million (down
2% from US$152 million) as it focused on positive underwriting results but
investment income including foreign exchange gains increased from US$8.3
million to US$17.1 million. The overall surplus after tax for the year was
US$7.1 million from last year's US$10.7 million, but excluding extraordinary
items totalling US$5.9 million the operating result showed a healthy 21%
improvement of US$2.3 million.
"I am pleased to report a successful year of consolidation during 2003,"
commented Sir David Thomson
, Chairman of the TT Club
. "Our underwriting
performance has improved, we have achieved another positive investment
return and our free reserves have grown."
Under extraordinary items the Club has reflected the termination of its
five-year finite reinsurance agreement with Swiss Re (SSREY)
and replacement with a
three-year quota share reinsurance with the same Group. Additionally, the
's Board has written down the book value of its joint venture
investments at Bolero.net
and TT Neptunus Services Ltd
, the latter company
transferring its business to the joint venture partner, BV-Unicon.
Looking forward to 2004-2005, Mr Paul Neagle
, Chief Executive, forecast that
business volumes would increase in line with world trade - driven by US
imports and Chinese exports - and that insurance rates would remain hard and
"We are maintaining our drive for capital growth in order to regain our A
minus rating as quickly as possible," he said. "We are on target to achieve
this by maintaining underwriting discipline, continuing to reduce
attritional claims, investing conservatively and focusing on service quality
for members and brokers."