Press release

Skuld maintains financial strength, improves combined ratio

14 December 2018

Skuld ended the first nine months of the 2018/19 reporting year (as at 20 November) with an improved combined ratio of 101% compared with 104% in the same period last year. The mutual book of business recorded a reduced number of claims in the first nine months, reflecting the high-quality tonnage entered with Skuld.

The result ended at USD -16 million compared with USD 27 million year-on-year, with the contingency reserve now standing at USD 426 million, compared with USD 421 million in the same period last year.

An increase in pool-able claims from other clubs negatively affected Skuld's nine-month result.

Volatile investment markets also had a negative impact on the bottom line result, following declining equity markets globally and increased interest rates.

Ståle Hansen, Skuld president and CEO, said: "Volatility in the financial markets shows the importance of having a strong balance sheet. Skuld's solvency ratio remains on target, endorsing the robust financial position of Skuld and our long-term commitment to sustainable growth.

"In spite of a challenging nine months in the marine insurance market and the investment environment, Skuld remains in an excellent position to continue to serve the global marine markets. For the third year in a row we are pleased to be able to support our members with a credit of 2.5% on individual mutual premiums. The credit was given back in the November payment instalment. In addition, a USD 5 million Members' Performance Bonus allocated to eligible mutual members with a positive loss record was distributed in November 2018."

Positive contributions from Skuld's commercial operations, including Offshore and Charterers, have been partly offset by the operations at Lloyd's for the current incident year still being affected by a few large claims early in the year, and deterioration on earlier years.

Hansen added: "I am confident that our improvement measures initiated in 2018 will further strengthen the performance on our commercial book of business next year.

"As has been the case now for many years, the Skuld P&I renewals for the policy year starting 20 February 2019 will be decided by individual assessments of the members' own statistical records for the past five years, and with no general increase. In 2019, we look forward to continuing to deliver service and competence that our members, clients and brokers can rely on."

Please see full report on our Financial reports page.