Skuld commercial operations support challenging nine months

Press release

Published: 15 December 2020

Press release - Waves (illustration)

Skuld today announces the first nine months of the 2020/2021 policy year with a negative result of USD 10 million, representing a slight improvement compared with the negative result of USD 12 million for the same period in 2019/2020.

The nine-month technical result ended at negative USD 46.2 million with a combined ratio of 118%, compared with 116% for the same period last year. The result has been driven by the increased and new pool claims from other members of the International Group (IG), and some of Skuld’s own large claims within the club retention. However, Skuld’s mutual P&I members continue to benefit from its commercial operations and diversified investment portfolios.

Net investment income for this period reached USD 38 million, with a positive investment return at 5.4%. Although the market has been impacted by the Covid-19 pandemic this year, the recent news regarding vaccinations has set the stage for an improving market condition and a more promising shipping environment.

Ståle Hansen, Skuld president and CEO, said: “2020 has been a challenging year for many reasons but Skuld remains to be in a robust position. We are well-capitalised and the combination of our strong commercial operations with our financial discipline on the mutual book leave us well-placed to continue to weather the storm. Our strategy of diversification is standing firm and our commercial lines of business continue to deliver positive results. Our members and clients are our priority, and we look forward to providing them and brokers with the competence and service that they rely on.”

Please see full report on our Financial reports page.