Skuld on track to deliver eleventh year of underwriting profit

Press release

Published: 16 September 2013

Launches innovative Members Loyalty Bonus

Skuld Group, a leading marine insurance provider, today announces results for the financial half year ending 20 August 2013.

Financial highlights

  • Bottom-line result of $12 million, increasing contingency reserves to a record high of $320 million (half year 2012: $2 million and £293 million respectively)
  • Combined ratio of 93% (half year 2012: 98%)
  • Underwriting surplus of $13 million (half year 2012: $3 million)
  • On course to deliver 11 consecutive years of underwriting surplus - sector leading operating performance

For full details of the First Half Year Report, please visit or Financial reports page.

Operational highlights

  • Launch of Members Loyalty Bonus programme
  • S&P affirming clean A rating with ‘stable outlook’ in July 2013 
  • Strengthened both the cargo and hull teams at Lloyd’s syndicate Skuld 1897 – appointment of Andy Lane and David Farr
  • New team at Lloyd’s writing physical damage and liability cover to ports and terminals
  • Launch of SKULD\YACHT, dedicated exclusively to the P&I needs of superyacht owners

Douglas Jacobsohn, President and Group CEO, commented: “The first half of 2013 was marked by strong growth in Skuld Group's commercial operations, illustrated by our continued track record towards 11 consecutive years of underwriting profit – a sector-leading performance.  With a combined ratio of 93% at the 2013 half-year, Skuld Group is performing very well and we will continue growing our P&I, Offshore and Skuld 1897 offerings, both organically and through strategic opportunities, should they arise.”

Skuld’s strong performance across the diversified group has led to the launch of a new programme to reward mutual members. The Members Loyalty Bonus, approved by Skuld’s board of directors, will see mutual members receive a ‘cash back’ when the group’s ‘commercial operations’ move into profit following their start-up phases. Initially the Members Loyalty Bonus may be given in the form of a credit note - the amount of the bonus will, therefore, be transparent and separate from their insurance premium.

The programme is evidence of Skuld Group's long term strategy to deliver profitable growth in its commercial operations, such as Skuld 1897 and investment in Asta Capital (a managing agency at Lloyd’s). The group's non-mutual product lines have been the key factor in achieving the industry’s longest track record of underwriting surpluses and have also been an important contributor to the growth in Skuld Group's contingency reserves.

Mr Jacobsohn commented on the scheme: “The Members Loyalty Bonus Programme is an innovative and transparent initiative that demonstrates our dedication to profitable growth and even more importantly, to our members. Mutual members – our owners – have invested in Skuld’s diversification strategy, and will now receive a share of the group’s commercial profits.

“P&I will continue to be the backbone of Skuld’s business, but non-mutual products are imperative for our future growth and stability. Our premium income growth is driven by the success of our commercial operations, especially Skuld 1897. We have ambitious growth plans for all parts of the business and we remain dedicated to profitability – financial stability is the foundation of our business, and the best security we can offer our members and clients.

At the half year ending 20 August 2013 premium income increased 17% compared with the previous year, driven by growth at Skuld 1897, the group’s Lloyd’s syndicate, and a successful 2013 renewal on P&I business. 

In the first half Skuld’s contingency reserves stood at a record level of $320 million – up 9.2% ($27 million) compared with the prior year. Despite increasing in volume, the cost of claims remained flat for the period, bolstered by positive developments on claims from previous years and an absence of significant losses in the first half of 2013.