Steamship Mutual: Return to Positive Underwriting Results
Steamship Mutual has released its financial results following approval of its 2013/14 Report & Accounts by the Board of the Club.
The club achieved a financial year combined ratio of 96.7%, whilst maintaining a low risk investment strategy during the year (the combined investment portfolio recorded a modest 0.9% gain of US$8.4 million).
Total cash and investments increased by 3.1% to US$973.8 million and free reserves by US$15 million to US$301.2 million.
When compared to 2012/13, the club experienced fewer claims in the layers below US$250,000 and a lower average cost of such claims, but a greater number of larger claims above US$250,000. Overall, net estimated claims for the 2013/14 policy year, including IBNR provision and after reinsurance recoveries stand at US$229.2 million, 7.5% below the level of estimated claims for the 2012/13 policy year at the same point.
Owned entered tonnage grew by 3.3 million GT during the year, resulting in overall entered tonnage of 113.7 million GT.
The Report & Accounts will be published in June.
Gary Rynsard, CEO, commented: “The improvement in both the underwriting result and the financial position of the Club follows carefully controlled measures implemented by the Board to respond to the challenging market conditions over the past few years. The level of free reserves is now restored to its 2010/11 level.”
“We have been delighted to welcome some high quality fleets to the Club and we are convinced that our commitment to service has been a big influence on their decision to join us. Whilst the club only seeks growth on a sustainable basis, new Members are both an encouragement to us and recognition that we are a home for the best operators in the Industry. Equally important is the number of owners who have committed new buildings to be delivered in 2014.”