Skuld today announces a total combined ratio of 98%, as well as a positive bottom line result of USD 51 million (USD 18 million in 2015 before members' credit) for its 2016 financial year ending 20 February 2017. Gross earned premium in 2016 amounted to USD 403 million.
For the 14th consecutive year Skuld has reported a positive underwriting result. Added to that was a strong 3.4% return on investments, particularly on the equity portfolio towards the end of the policy year.
Skuld experienced a few large claims but over the year the frequency of regular claims remained low which contributed positively to the 2016 annual result. Reported pool claims from the International Group of P&I Clubs have been low, reflecting a generally small level of large claims over the year.
Skuld's 2016 results are accounted for before the deduction of members' premium credit, totalling USD 5 million, which will be returned to Skuld's mutual members in 2017. The total transfer to Skuld's contingency reserves will therefore be USD 46 million. Skuld's contingency reserves are now at a record high level of USD 394 million.
Ståle Hansen, Skuld president and CEO said: "As we celebrate our 120th anniversary, we are pleased to announce another strong Skuld result. Moreover, we have over the year demonstrated our casualty response service and our core competence in servicing members and clients in difficult situations. Financial strength is vital but what certainly stands out as Skuld's competitive advantage is the strength of the service we provide.
"Skuld will again give part of the year's result back to members as a premium credit. This shows that Skuld is in a financially healthy state and reflects that we are here for our members. Stability and strength are vital in challenging times and more than anything we demonstrate that by always working to keep our price level competitive.
"We are optimistic for the 2017/18 policy year and look forward to providing our members and clients with service and competence they can rely on."