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 January 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

USCG Free Boat from Ice Near Woods Hole

A Coast Guard crew responded to a fishing vessel trapped in ice in Woods Hole Passage, Woods Hole, Massachusetts, Saturday. At about 3 p.m., the crew of the fishing boat Capt.

Tug Boat Owner Jailed After Crew Man Dies

A tug boat owner was today was given an 8 month custodial sentence after his crew member died trying to reattach a tow line in a violent storm. During today’s hearing at Southampton Crown Court,

COMPIT to Showcase Smarter Ships, Systems & Solutions

The 14th International Conference on Computer and IT Applications in the Maritime Industries (COMPIT) will take place from 11th to 13th May 2015 in Ulrichshusen, Germany.

Finance

Indian Ports to Set Sail on Corporatization

Indian Finance Minister Arun Jaitley said in Union Budget 2015 that government-run ports in India will be encouraged to corporatize and become companies under the Companies Act.

Zvezda Shipyard Comes Up Despite Western Sanctions

German and Finnish partners continue to build Russia’s Far Eastern “Zvezda” shipyard for Arctic oil exploration ships, in spite of Western sanctions, reports Sputnik.

ADB Okays $30mln for Pak LNG Terminal

The Asian Development Bank (ADB) has approved a $30 million project loan to Engro Elengy Terminal Private Limited, a special purpose company which will build Pakistan’s

Insurance

Mariners Transiting Delaware River Cautioned

The Captain of the Port (COTP) Delaware Bay is notifying mariners that Upper Delaware River lighted buoy 33 (LLNR 3875) and Upper Delaware River lighted buoy

Top Five Most Costly Insurance Claims

The TT Club has alerted the supply chain industry to a persistence of claims in a handful of loss types. The international transport, freight and logistics insurance

BWMC's Entry Into Force Imminent

Jacqueline Tan, Senior Claims Executive at the UK P&I Club, commented on the ballast water management controls coming into force:  “The coming into force of the

 
 
Maritime Careers / Shipboard Positions Maritime Standards Navigation Pipelines Port Authority Salvage Ship Electronics Ship Repair Ship Simulators Sonar
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: 0.2750 sec (4 req/sec)