Skuld launches Members’ Performance Bonus
Skuld is in robust financial health and in an excellent position to continue to serve the global marine markets as it has done for 121 years. Therefore, Skuld is delighted to announce the Members' Performance Bonus programme which is intended to reflect our commitment to members contributing to the success of Skuld's P&I business. Skuld's chosen path of diversification is also bearing dividends and we are dedicated to support our members in today's challenging shipping and offshore markets.
This new Members' Performance Bonus programme comes in addition to the existing Skuld Members' Premium Credit.
- Skuld Members’ Premium Credit (launched in 2015)
- Premium credit for all mutual P&I members based on Skuld’s global technical underwriting result
- The Premium Credit is calculated on the individual member's P&I mutual premium for the policy year, and adjusted in line with the size of Skuld's result
- The Premium Credit is funded by allocation of the financial year's result ending 20 February and approved by Skuld's Annual General Meeting
- NEW Skuld Members’ Performance Bonus (launched in 2018)
- All members with at least one year’s membership with Skuld, and where premium contribution is higher than costs reflected in each member’s statistical record over a maximum period of five years, are eligible to the Members’ Performance Bonus
- Any Members’ Performance Bonus amounting to less than USD 10,000 will be deferred and aggregated until the member’s balance reaches USD 10,000, at which time the full amount will be distributed. After five years, any amounts aggregated that amount to less than USD 10,000 in total, will be paid out, subject to existing membership with Skuld.
- The Members’ Performance Bonus Programme (as opposed to the Members’ Premium Credit) is not subject to the technical underwriting result of the previous policy year, as it represents an allocation of the financial surplus applied to the financial year ending 20 February.
Calculating the Skuld Members' Performance Bonus
The individual share of the allocation is calculated by dividing the individual member's contribution (premiums less costs reflected in each members' statistical record) by the total contribution from all eligible members. The percentage is therefore proportional to member's contributions (i.e. the positive balance to cover admin expenses and other members' claims) and to the number of contributing years with Skuld.
Members who have not contributed premium higher than costs reflected in each members' statistical record within the financial year, do not qualify for a Members' Performance Bonus within that year.
Any member will have a new opportunity in subsequent years if performance measured over the new five-year-period has improved. Members having left Skuld at the time of the distribution are not be entitled to a distribution. All distribution amounts are subject to the approval of the Skuld Bermuda Annual General Meeting.
Recognition of performance and implementation
The Members' Performance Bonus programme represents a token of gratitude and appreciation to members who have contributed positively, as opposed to members who have received contributions in excess of premiums paid through the claims service and support from Skuld. The Members' Performance Bonus programme will be implemented in 2018 and payment date for the bonus allocation for the 2017 result is set to 20 October 2018.
Q&A – Skuld Members' Performance Bonus
- Who are eligible for bonus?
All mutual P&I members
- Entered by or before 20 February 2017.
- Entered at the time of the bonus payment by 20 October 2018.
- With a positive five years (or less) 2013-17 mutual P&I statistical contribution by 20 September 2018.
- How is the individual bonus calculated?
The statistical USD contribution is calculated by net retained premium less own & incoming pool claims. By contribution we mean the positive member balance that goes to cover operating expenses and other members’ claims.
- Will the payment influence the statistical loss record?
No – the bonus is a cash payment without any influence on the members’ individual loss records.
- Why do you have a USD 10,000 or five bonus years payment limit?
Since this is a manual cash payment it has been decided to have a minimum amount of USD10,000 or a minimum number of five bonus earning years to avoid unnecessary administrative expenses.
- Will a negative five years statistical loss record reduce earlier earned bonus?
No – you will keep all earlier earned bonus until you reach a total amount of USD 10,000 or you have obtained five bonus earning years.
- When will the bonus payment be made?
The bonus will be paid by 20 October 2018 based on the individual member’s five years (or less) 2013-17 mutual P&I statistical contribution by 20 September 2018.