Press release
Press release Waves

Nine-month result indicates need for improved P&I rates

13 December 2019

Skuld today announces that the first nine months of the 2019/20 financial year delivered a result of USD -12 million, compared with USD -16 million for the same period of 2018/19.

Net investment income for the period contributed positively to the improved result, by USD 36.1 by buoyant equity markets and declining bond yields.

Ståle Hansen, Skuld president and CEO, said: “The nine-month technical result was again influenced by increased pool claims from other clubs, alongside several large own-claims within the club retention and prior-year deterioration. This activity contributed to a significantly lower technical result compared with the same period last year. The first nine months of the 2019/20 financial year show a combined ratio of 116%, compared to 101% for the same period last year. This clearly shows the need to bring the portfolio back into balance through improved P&I rates.”

Skuld’s Lloyd’s syndicate 1897, which earlier this year began a three-year run-off, contributed with some negative development in the last quarter. However, the hull and machinery business now written on corporate paper under the Skuld Hull brand made a positive contribution.

Hansen added: “In a challenging market, it is crucial for Skuld to continue its diversification strategy, and its strong focus on maintenance of a sustainable balance between financial strength, risk, and growth. This is key to reducing volatility for our members, and maintaining our strong foundation, thereby remaining a stable and robust partner for our members long into the future.

"Skuld’s P&I renewals for the policy year starting 20 February 2020 will again be decided by individual assessments of the members' own statistical records and with no general increase. In 2020, 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.