Skuld claims ‘very robust’ financials in benign claims environment
Marine insurance provider Skuld is in a “very robust” financial state, given its positive nine months result, but expects global inflation to impact claims costs negatively in 2023. The company is moving forward with focus on pricing accuracy and selective underwriting.
Skuld reported a positive result of $13.4 million in the nine months of the financial year ending February 20, 2023, an improvement of $33.9 million compared with the same period last year.
The technical result also showed the positive development from the half-year, ending this reporting period at $21.6 million, with an overall combined ratio of 94% driven by the positive contribution from the commercial book of business.
Gross premium and calls ended at $350.5 million, an increase of $41.5 million compared with the same period last year, and with growth both from mutual and commercial lines of business.
Skuld noted that its nine-month result was characterised by a “benign large-claims environment” compared with last year. There was a gradual improvement in the technical result of mutual products, but with a combined ratio above target, expectations of inflation increases and an uncertain claims environment, there remains a need for further rate improvements for the mutual portfolio.
The net investment return contributed negatively with -1.5% in the quarter. Markets across asset classes were “highly volatile, and central banks in developed markets continued their tightening course, trying to calm labour markets and dampen inflation,” management said in its 9M statement. Due to the negative investment result together with foreign exchange fluctuations, changes in tax liabilities had a positive effect on the nine-month financial result.
Ståle Hansen (Pictured), Skuld president and CEO, said: “Skuld is in a very robust financial state. Notwithstanding a relatively benign claims environment, global inflation is likely to impact claims costs negatively as we move into 2023, and we need to remain mindful of accuracy in pricing and selective underwriting. Our efforts to ensure balance in the mutual portfolio will continue as we maintain our leadership position through financial strength and world class coverage and service, ensuring that our members, brokers, and clients can rest assured with Skuld.”
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