Skuld achieves best combined ratio in 5 years

Profits at marine insurer Skuld dipped in 2015 despite it achieving its lowest combined ratio in five years.

The firm reported bottom line result of $13 million for its 2015 financial year compared with $13.5 million in 2014.

Its gross earned premiums were almost stable in 2015 hitting $410 million compared with $411 in 2014.

Its combined ratio was 95 percent in 2015, down from 99 percent in 2014 – a five-year best for the firm. The company said this improvement was due to a strong focus on upholding rates and retaining quality members and clients in a challenging market, and through the diversification of core business.

Skuld’s results are accounted for after the deduction of a 28 percent credit, totalling $5 million, returned to Skuld’s mutual members in 2016. In part, the mutual members’ credit was achieved thanks to the positive combined ratio delivered by Skuld’s commercial service offering.

Ståle Hansen, Skuld president and chief executive officer, said: "This set of results is an encouraging sign that our team of underwriters and claims handlers are well equipped to meet the needs of our members and clients in a difficult business environment.

“Our combined ratio is at a five-year low and while a number of our service offerings have performed well, I was especially pleased to see a strong contribution from our offshore book of business. The diversification strategy enables us to give a credit back to our mutual members even when the investment returns have proven to be volatile.”

He added: “A clear vision and a firm strategy have paved a successful path and our 2015 results underscore the importance of continuing our diversification strategy as we build on our platform of profitable growth in 2016 and beyond, and continue to provide our members and clients with service and competence they can rely on.”