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

People & Company News

Ship as Lifeboat Concept Disputed by ICV

A recent meeting at the National Transportation Safety Board in Washington, D.C. (attended by International Cruise Victims (ICV) Board representatives) discussed

McDermott Elect G.P. Luquette Board Chairman

Provider of integrated engineering, procurement, construction and installation (EPCI) services for upstream field developments worldwide, McDermott International, say that Gary P.

Ill-Considered Energy Policies Threaten US Navy: Report

The United States government has pursued energy policies based on “the mistaken belief in the unproven science that claims carbon dioxide (CO2) emissions from burning

Finance

Korean Prosecutors Raid Home of Ferry's Owner

Prosecutors investigating the fatal sinking of a South Korean ferry have raided the home of Yoo Byung-un, the head of a family that owns the Chonghaejin Marine Co.

UK Subsidises 8 Renewable Energy Contracts

The British government on Wednesday awarded investment contracts under a new subsidy regime to eight renewable energy projects, including five offshore wind farms and three biomass plants.

Two Navy Contracts for GD Bath Iron Works

Included in the latest listing of contracts awarded by the US Department of Defense, Navy, are two contracts with General Dynamics Bath Iron Works, Bath, Maine.

Insurance

China's Japanese Ship Seizure has pre-WWII Roots

It all began with a pre-World War Two contract between China's then "ship king" and a Japanese company to lease two Chinese freighters. When the one-year lease was up in 1937,

Calculating Settlement Value of a Case

It has been said that war is politics by other means.  It is probably equally true that litigation is business by other means.  On the one hand, the threat of litigation – and the resulting costs,

How to Work with Your Insurer When Experiencing a Loss

Marine insurance – just like health, automobile and homeowner’s insurance – can be a valuable safeguard in case something unexpected happens. And when something bad happens,

P&I Clubs

China's Japanese Ship Seizure has pre-WWII Roots

It all began with a pre-World War Two contract between China's then "ship king" and a Japanese company to lease two Chinese freighters. When the one-year lease was up in 1937,

BP Spill Compensation Battles Rage On

BP pays billions in compensation but some claims still unpaid; Oil still appearing on beaches in Gulf of Mexico. Company says claims process is flawed, not all oil from spill.

Japan Expresses Concern Over Chinese Ship Seizure

The Japanese government has expressed its concerns to China via diplomatic channels over the seizure of a Mitsui O.S.K. Line Ltd ship by a Chinese court in connection with a case over wartime claims,

 
 
Maritime Careers / Shipboard Positions Naval Architecture Navigation Pipelines Port Authority Ship Electronics Ship Repair Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | 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: 0.1231 sec (8 req/sec)