At its meeting in Florence on 7 June 2013, the Committee was informed of the status of the Association and was impressed by the club's positive development and strong financial standing, being the only club in the International Group with a consecutive 10-year positive underwriting result. The Committee noted that in challenging financial, shipping and insurance markets, the club's strategy of diversification alongside strong underwriting discipline has been rewarded with results stronger than many others in the market.
Financial Year 2012/13
The Board of Directors' report and Statement of Accounts for the Association were reviewed and approved. The Committee recommended that the Board of Directors' report and Statement of Accounts are adopted at the Annual General Meeting. Full accounts are available on the Skuld web site. The Annual General Meeting will take place in Oslo on 29 August 2013.
The Committee noted that claims for the Association were in line with forecasts, but that Pool claims generated during 2012 had been more expensive than anticipated. Although Skuld had no Pool claims for 2012, Skuld, along with all other clubs, has to contribute, in line with the obligations of the pooling system. This reduced the underwriting result for 2012, but due to the diversified book of business, the Association produced a positive technical result of USD 1 million.
The net financial result for the accounting year 2012 produced a profit of USD 18 million. The surplus will be transferred to the contingency reserves, which now stand at USD 308 million.
Policy Year 2013/14
The Committee supported the continued strategy of diversification, and the positive development of the Association's Syndicate at Lloyd's, Skuld 1897, where results are improving and growth in 2013 is anticipated with an estimated premium of more than GBP 60 million.
Skuld Offshore is developing ahead of expectations and has achieved a good increase in the portfolio with prestige clients and operators in the offshore sector. Premium income is estimated to exceed USD 50 million for 2013.
P&I renewals were better than expected and saw an increase in both premium volume and GT. The Association currently writes more than 76 million GT, with an estimated premium of USD 240 million, an increase of 11% with more new members joining the Association.
Review of Policy Years
The Committee acknowledged the Board's decision to reduce release calls and to propose to the Annual General Meeting (AGM) to close the policy year 2010/11 at their meeting on 29 August 2013. The standing of the years is thereby as follows:
2009/10 Closed
2010/11 Release call 5% - proposed to be closed by the AGM 29 Aug 2013
2011/12 Release call reduced to 3%
2012/13 Release call reduced to 8%
2013/14 Release call set to 14%
Elections
The Association's Board of Directors is elected by the Committee in accordance with statute 1.5.2. The following were elected and re-elected to the Board:
Mr. Klaus Kjærulff, Nordic Tankers (Chairman)
Mr. John P. Tavlarios, General Maritime Corporation
Mr. Peter Wilsund, independent
Mr. Trygve Seglem, Knutsen OAS Shipping
Mr. Sergey Popravko, Unicom Management Services (Cyprus) Ltd.
(Sovcomflot)
Mr. Ulf G. Ryder, Stena AB
Mr. Manfredi Lefebvre D'Ovidio, Silversea Cruises Holding Ltd.
Mr. Bernt O. Bodal, American Seafood Group
Mr. Roberto Giorgi, V-Ships (New elected)
Mr. Claus Spinding, employee representative
Ms. Simone Trondal, employee representative
The Committee expressed its gratitude to Mr Roberto Giorgi, President of V-ships, on his joining the Board of Directors. Mr Giorgi is well-known in the shipping community and with his extensive experience he will offer a valuable contribution to the continued success of the development and diversification the Skuld group.
Yours faithfully,
SKULD
Douglas Jacobsohn
President and Group CEO