Skuld reports positive nine-month result 2016

Press release

Published: 16 December 2016

Skuld reports positive nine-month result of USD 16 million

Skuld ended the first nine months of the 2016/17 reporting year (as at 20 November) with a positive bottom-line result of USD 16 million.

Ståle Hansen, Skuld president and CEO, said: "Strong financial markets contributed to a positive income on investments. Skuld experienced a few large claims earlier in the year which has caused a small loss on the technical result. However, it was an improvement compared with the technical result at half year. The positive contribution to the contingency reserve brings the reserve's total to USD 364 million.

"Net investment income ended at USD 20 million, mainly driven by strong equity markets. Net investment income is still significant but shows a deterioration compared with the six-month result. Expectations for higher interest rates have had a negative impact on the USD-denominated part of the fixed income portfolio. However, Skuld has a long-term investment strategy with a conservative approach, with the ability to absorb changing market conditions."

Skuld has announced its commitment to continue the Members' Credit scheme for next year and this will be decided in conjunction with the year-end closing.

Hansen added: "Skuld continues to pursue its diversification strategy and has acquired the SMA/Gerling Norway team and its portfolio of marine hull business. SMA/Gerling Norway will continue under the name Skuld Marine Agency (SMA) and the portfolio will begin to attach from 1 January 2017. The acquisition gives Skuld access to SMA/Gerling Norway's hull & machinery book of business, which covers around 6.000 vessels paying some USD 40 million in premium. Skuld's priority remains to ensure that all customers and brokers experience the same excellent service."

Please see full report on our Financial reports page.