Press release

Skuld reports positive 2018 half-year result

7 September 2018

Skuld today announces a positive result for the first six months of the 2018/19 policy year. Skuld reports a bottom-line result of USD 14 million compared with USD 8 million at the half year in 2017. The result is mainly derived from Skuld's P&I book of business and a low number of reported claims from members.

Skuld's written premium decreased slightly compared with the same period last year, due to de-selection and rates suffering the effects of a challenging market.

Net investment income for the period contributed positively with USD 4.6 million, in spite of the difficult investment conditions created by rising interest rates and some geopolitical instability. The increased interest rates have had a negative effect on Skuld's fixed income portfolio but have been offset by positive currency effects. However, Skuld's long term investment strategy remains unchanged, with a majority weighting in low-risk bonds to reduce volatility and to ensure sufficient capital for a healthy operation in the future.

One pool claim has been reported so far but with an absence of other large claims being reported. Skuld's policy of attracting quality tonnage and risk diversification continues to create stability in the operational performance for the club. The combined ratio at the half year is 95%.

Ståle Hansen, Skuld president and CEO, said: "We are very pleased with this result, particularly given the challenging environment in which we are operating. In a market with these pressures, it is crucial for Skuld to continue its diversification strategy and our strong focus on maintaining a sustainable balance between financial strength, risk and growth. This is key to reduce volatility for our members and to create the strong foundation we aim for, thereby remaining a stable and robust partner for our members also in the future.

"As a token of our appreciation and given our positive underwriting result, we will continue to return a premium credit to all mutual members, which, following the AGM approval, will be effectuated in November. In addition, we have launched the Skuld performance bonus which rewards members with more than 12 months in Skuld and with a premium contribution higher than own claims.

"Skuld's number one focus is, and will be, our members', brokers' and clients' interests and we will continue to provide them with service and competence they can rely on."

Please see full report on our Financial reports page.