Skuld reports growth in 9M profits
Skuld, the marine insurance provider, has reported a positive bottom-line result of $20 million in its results for the nine months ending 20 November 2015, including the provision of a new mutual members’ credit of $5 million.
The bottom line result of $20 million is a big increase of last year’s result of $5 million during the same time period.
Skuld also reported that its contingency reserves were at a record high of $ 354 million for the first nine months of the year.
“After nine months the bottom-line ended at $20 million, which includes provision for a mutual members’ credit of $ 5 million,” said Ståle Hansen, president and chief executive officer (CEO) of Skuld.
“This is an $11 million improvement since the six months figures and a $15 million improvement compared with the same period last year. Skuld’s chosen path of diversification is bearing dividends and we are seeing a positive contribution from the commercial lines of business and a positive run-off on older claims years. These are all drivers for the positive bottom line result.”
Hansen also said that the firm has seen stable growth in gross tonnage of its protection and indemnity (P&I) line for the first nine months of the year.
He also said that although there have been fewer claims in excess of $ 1 million this year compared with 2014, the pressure on premium levels challenges the ambition for a balanced result for the mutual P&I cover.
“The overflow of capacity in the insurance industry continues to put pressure on premium levels for the commercial products as well,” he said.
“However, a benign claims environment in 2015 has contributed to a strong performance from this line of business.”
Hansen also said that despite of the volatile financial markets in 2015 net investment income has added a marginal positive contribution.
In November 2015, and based on Skuld’s favourable 2015/16 underwriting result after nine months, Skuld announced a premium credit for mutual P&I members. The credit is guaranteed to be a minimum of 2.5 percent on the individual member’s mutual P&I premium for 2015/16 policy year, with an opportunity to increase should the result improve further in the fourth quarter.
Hansen added: “A strong and financially healthy situation is a prerequisite for our operation. The other important element is service. The efficiency and responsiveness to our members’ and clients’ needs are what make Skuld a success.
“The ability to handle complicated casualties in the best possible way is where Skuld delivers added value. The investment we make in our people is essential as we continue our long term commitment to provide our members, clients and brokers with first-class service and competence they can rely on.”
