Skuld grows but increased claims hit its 2014 results

Skuld, the marine insurer, grew by almost 9 percent in its 2014 financial year but it was also hit by a drop in profits because of an increased number of large claims and a notable churn effect on the P&I owners’ book, its CEO said.

The company made a net profit of $13.5 million in 2014 financial year compared with $29 million in 2013. Its combined ratio was 99 percent.

Its gross earned premiums grew to $411 million, an 8.4 percent increase on P&I and commercial businesses combined. Its contingency reserves stood at a new record level of $348 million.

Ståle Hansen, Skuld President and CEO, said: "This is a positive result and we are pleased to have fared so well in a challenging year for Skuld where we have seen an increased number of large claims and a notable churn effect on the P&I owners book.

“Furthermore, with our dedication to excellence in service we are looking back on a successful year of on-boarding additional key competencies in our strategic business units and will by this continue to ensure the highest service quality to our members and clients.

“Our vision and strategy remain firm, and to me continuity is important in order for Skuld to develop successfully. Fierce competition and volatile markets underscore the importance of continuing our diversification strategy to ensure profitable growth in the coming years.”