Swedish Club Results Show Improvement
The Swedish Club today announced its half-year results in which it reported that the club continued to demonstrate a solid performance in the first six months of the new accounting year with an overall surplus of $10.3 million, this outcome being largely a result of continued positive underwriting performance in a benign claims environment for the club and its members, as well as from a stable investment return.
At June 30, 2014, the club showed a net combined ratio of 93% and free reserves level reaching $178 million. The club’s investment portfolio generated a return of 3.15% against a benchmark of 2.46%.
Standard & Poor’s revised its assessment of the club’s capital and earnings from “moderately strong” to “sStrong”; acknowledging, in their view, a better than expected operating performance in the last 18 months. Capital adequacy has an AA value in the upper range, and Standard & Poor’s expect the club’s total adjusted capital to be close to the AAA level in 2016. The financial risk profile has been upgraded from “upper adequate” to “moderately strong”, and the club maintained its rating of BBB+ (sable outlook).
Lars Rhodin, Managing Director of The Swedish Club, commented, “The positive outcome to date demonstrates the value of the club’s policy of diversification and controlled growth.”