Skuld reports positive half-year result

Press release

Published: 8 September 2017

Skuld today announces a positive bottom-line result of USD 8 million for the six months ending 20 August 2017, compared with USD 29 million at the half year in 2016.

The period has been marked by a small number of substantial claims. However, the cost of these claims has been partly offset by the positive contribution from commercial operations which continue to produce a surplus. The technical result at the half year shows a negative outcome of USD 22 million and an overall combined ratio of 111%.

Ståle Hansen, Skuld president and CEO, said: "Skuld's diversification strategy continues to benefit members by reducing volatility, as Skuld's commercial activities provided a combined ratio of 94%. Skuld is committed to maintaining high levels of support and service to members and achieving the right balance between premium levels, sustainable growth and financial strength. The volatile claims environment emphasises the importance of a sustainable premium rate to achieve a balanced result."

Net investment income for the period ended at USD 30 million, driven by strong equity markets and lower interest rates. Further volatility is to be expected but the long-term conservative investment strategy places Skuld in a good position to absorb changes in the financial markets.

The positive bottom line result boosts contingency reserves to a total of USD 402 million.

Skuld remains in a strong financial condition as recently reaffirmed with an 'A' (stable outlook) Standard and Poor's rating.

Hansen added: "Skuld will continue to reward members for their loyalty when the financial results allow for a distribution. For our mutual members, we will, as announced in 2016, show our commitment to them by offering a credit of 2.5 % on the individual member's premium for the 2017 policy year. The credit has been approved by Skuld's Annual General Meeting and will be deducted from the November premium instalment. We are pleased that the strong financial performance last year enables us to give something back to our mutual membership. We look forward to continuing to deliver to our members, clients and brokers the service and competence they can rely on."

Please see full report on our Financial reports page.