Skuld overcomes claims to announce positive nine months result

Press release

Published: 19 December 2014

Skuld today announces a positive consolidated bottom-line result of USD 5 million at the end of the nine-months ending 20 November 2014. However, a series of large claims in the last three months of the period led to a negative underwriting result of USD 6.5 million.

 Highlights of the nine months

  • Positive bottom line result of  5 million USD
  • 11% Premium growth compared to same period last year
  • All P&I products now offered from London

Since the release of Skuld’s six-month figures in September the Club has witnessed a number of large claims (in excess of USD 1 million.) from Skuld members.  These claims still fall within Skuld’s own club retention and are not shared by the  International Group of P&I clubs’ pooling system. Skuld’s claims analyses indicate a tendency towards increasing cargo and collision claims.

After the nine month period Skuld’s premium income increased by USD 29 million compared with the same period last year.

Skuld President and CEO, Douglas Jacobsohn, said: “The increasing claims costs and the challenging churn on the owners’ book of business underlines the importance of Skuld’s diversification strategy where the non-mutual products and our Lloyd’s syndicate Skuld 1897 both enhance the service offering and mitigate some of the required premium increases for our members.”

In spite of volatile financial markets net investment income contributed USD 12 million in the period, and the bottom-line showed a USD 5 million contribution to contingency reserves.

Jacobsohn added: “The quarterly updates from Skuld demonstrate the volatility in our business throughout the year and the importance of having a strong balance sheet to protect our members.

“During 2014 we have expanded our commitments in the London market and this has been a key success factor to our continued growth. Skuld’s London operation has a strong team of skilled underwriters for our Lloyd’s syndicate and the office has been further strengthened with its own risk manager. As a further step in Skuld’s diversification, the London office is now fully equipped to service all P&I products as well, including Owners Mutual P&I/FDD and Charterers P&I/FDD in addition to Skuld Offshore, Skuld Fixed P&I and Skuld Yachts.

Skuld continues to focus on service, innovation, diversification and growth. Investment in our people is essential as we continue our commitment to provide our members, clients and brokers with first-class service and competence they can rely on.”

Please see full report on our Financial reports page.