Non-Skuld pool claims negatively impact half-year result

Press release

Published: 8 September 2020

Press release - Waves (illustration)

Skuld ended the first six months of the 2020/21 policy year with a negative result of USD 14.3 million compared with a positive result of USD 2 million at the half-year in 2019/20.

The half-year technical result amounts to negative USD 25.5 million with combined ratio at 115%, compared with 112% for the same period last year. The main drivers behind the negative result are increased International Group (IG) pool claims, and COVID-19-related claims within the cruise industry in the beginning of the year. However, Skuld continues to see positive contributions from its commercial operations, including offshore, hull, charterers and FDD.

Net investment income for the period contributed positively to the result, with an investment return of 3.2%. After extremely volatile markets in March, prompted by global uncertainty around the economic impact of the COVID-19 pandemic, equity markets recovered fast.

Ståle Hansen, Skuld president and CEO, said: “This has been a challenging half year, but we are pleased with the performance of our commercial operations and positive investment returns. Our focus now is on rectifying the performance of our mutual book of business for the next policy year. Thus far we are optimistic about an improvement in the second six months as Skuld continues to attract quality tonnage and enjoy the benefits of a successful diversification strategy. We remain committed to providing our members, clients and brokers with the service and competence they can rely on.”

Please see full report on our Financial reports page.