Skuld today announces a positive bottom line result of USD 11 million (USD 58 million in 2017) for its 2018 financial year ending 20 February 2019, and a total combined ratio of 98%. Gross earned premium in 2018 amounted to USD 402 million.
The result marks continuity in a record-breaking 16th consecutive year during which Skuld has reported a positive underwriting result. The year was characterised by challenging conditions in global insurance and investment markets. However, commercial marine liability underwriting contributed notably to the overall result, alongside a balanced performance of Skuld’s mutual P&I liability business.
Skuld experienced a handful of large claims, but overall claims frequency remained low, which contributed positively to the 2018/19 annual result. However, a high number of large claims submitted to the International Group of P&I Clubs’ joint pool added significantly to 2018/19 costs. Skuld only had two reported pool claims, but continues to support the efficiency gains achieved through its membership of the International Group.
Global investment market volatility weighed on Skuld’s investment returns for the year, which increased the bottom line by USD 3 million. Skuld’s contingency reserves are now at a record high level of USD 453 million.
Ståle Hansen, Skuld president and CEO, said: "Skuld has delivered another strong result, relative to the environment in the international marine insurance market. The P&I side of the business continues to grow, with a net increase in entered tonnage, which is a positive reflection of Skuld’s market-leading levels of service.
“We have consolidated our P&I and commercial underwriting under the Skuld brand, as we continue to pursue diversification and sustainable growth and to enhance our services and global presence. We remain cautiously optimistic for 2019/20. No matter what the outcome for the year, we will continue to provide our members and clients with top-level services, international reach, and technical competence which our members and clients can rely on.”