Steamship Mutual Addresses Underwriting Imbalance

MarineLink.com
Friday, May 17, 2013
Photo: Steamship Mutual

Steamship Mutual released interim financial results for the year ending February 20, 2013.

As with all international group clubs, underwriting performance for the year ended February 20, 2013 was adversely affected by the worst pool experience on record. Claims within the club retention were also at higher levels than predicted, reflecting continued upward pressure upon claims despite the economic downturn. Nevertheless there was an improvement in prior year results, which is consistent with the club’s normal experience. These factors resulted in a financial year combined ratio of 112.5% and an increase in the three year average ratio to 106.4%.

The club benefited from an investment gain of $27.0 million, a 3% return, and the total of cash and investments increased by 5.2% to $944.7 million.

These investment gains largely offset an adverse underwriting result, and free reserves stand at $286.2 million for 2013, a reduction of $9.6 million from the position at February 20, 2012.

Colin Williams, Head of Claims, said, “During 2012 the club experienced fewer claims in the layers below $250,000 and up to the club retention as compared to the preceding year. However the average cost of claims was higher, in particular for claims above $1.8 million, and the club had two claims on the pool as opposed to one. Net estimated claims for the 2012/13 policy year, including IBNR provision and after reinsurance recoveries, are $247.8 million, 6.7% above the comparable figure for the 2011/12 policy year at the same point.”

Stephen Martin, COO, said, “At renewal, the overall achieved increase – including individual adjustments for record and the value of significantly higher deductibles in some cases – was above the 7.5% increase set by the club board. This will enhance the club’s ability to accommodate the possibility of another adverse year for claims.”

www.steamshipmutual.com

 

Maritime Reporter November 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Madsen to Chair Norway’s Research Council Executive Board

Henrik O. Madsen appointed chairman of the executive board of the Research Council of Norway   DNV GL president and CEO Henrik O. Madsen was appointed as chairman

Port of Houston Expecting Record Year

The Port of Houston Authority is expecting 2014 to close as a banner year for the port, with 34 million tons of cargo handled through November, Executive Director

Hapag-Lloyd Completes CSAV Merger Capital Increase

Hapag-Lloyd completed the planned capital increase of EUR 370 million (approximately $452.5 million) as part of the business combination with the Chilean shipping

Finance

Larger Tankers May Offer Better Return Chances

Investors looking for returns in the tanker markets can invest their capital in a variety of ways. Should an owner invest in a VLCC or an Aframax? How about an

US Plans to Shut Royalty Loophole on Coal Exports

U.S. coal companies will no longer be able to settle royalties at low domestic prices when they make lucrative sales to Asia according to reforms proposed by the Interior Department on Friday.

Hapag-Lloyd Completes CSAV Merger Capital Increase

Hapag-Lloyd completed the planned capital increase of EUR 370 million (approximately $452.5 million) as part of the business combination with the Chilean shipping

Insurance

DSG Marine Asks Shipowners to Consider Fixed Premium P&I Cover

P&I Insurance Seminar for Owners and Charterers held in Mumbai DGS Marine, a global P&I management provider and exclusive manager for the British European and Overseas (BE&O) P&I Facility,

US Obamacare Impacts the Global Marine Industry

The Affordable Care Act (ACA), otherwise known as Obamacare, the recent healthcare plan in the United States, is affecting the international superyacht industry,

Even 'Small' Vessels are Getting Bigger

The Shipowners’ Club is a mutual provider of P&I insurance that has throughout its 160 year history been dedicated to serving owners of small and specialist ships.

P&I Clubs

DSG Marine Asks Shipowners to Consider Fixed Premium P&I Cover

P&I Insurance Seminar for Owners and Charterers held in Mumbai DGS Marine, a global P&I management provider and exclusive manager for the British European and Overseas (BE&O) P&I Facility,

Even 'Small' Vessels are Getting Bigger

The Shipowners’ Club is a mutual provider of P&I insurance that has throughout its 160 year history been dedicated to serving owners of small and specialist ships.

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Navigation Pod Propulsion Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1955 sec (5 req/sec)