Norway-based international marine insurance company Skuld announced a positive bottom line result of USD 58 million (USD 51 million in 2016 before members' credit) for its 2017 financial year ending 20 February 2018, as well as a total combined ratio of 97%. Gross earned premium in 2017 amounted to USD 413 million.
For a record 15th consecutive year Skuld has reported a positive underwriting result. Added to that was a strong 7% return on investments.
With this positive result Skuld will for the third consecutive year propose to the AGM a members' premium credit to all mutual members and launch its members' performance bonus. This bonus (which operates alongside the member's premium credit) rewards members of more than 12 months with Skuld who have premium contributions exceeding own cost of claims.
Skuld experienced a few large claims but over the year the frequency of regular claims remained low which contributed positively to the 2017 annual result.
Skuld's 2017 results are accounted for before the deduction of members' premium credit, totalling USD 5 million and members' performance bonus of USD 5 million (in total USD 10 million), which will be returned to Skuld's mutual members in 2018. The total transfer to Skuld's contingency reserves will therefore be USD 48 million. Skuld's contingency reserves are now at a record high level of USD 442 million.
Ståle Hansen, Skuld president and CEO said: "We are very pleased to announce another strong Skuld result. Moreover, the introduction of the members' performance bonus, on top of the members' premium credit, shows not only our healthy financial state but also reinforces our commitment to our members.
"We are proud of the service we offer. Over the year our casualty response and claims services have been seriously tested and our assistance to members and clients in difficult situations has again received very positive feedback.
"We remain cautiously optimistic for 2018/19 amid challenging shipping market conditions and volatility in the financial markets, and we look forward to continuing to provide our members and clients with service and competence they can rely on."