The Shipowners’ Club, the specialist P&I insurer serving the global, smaller and specialist vessel sectors, announces its results for the year ended 20th February 2012, which feature a healthy overall surplus, increased premium revenues and growth in both tonnage and Member numbers.
London, Luxembourg, Singapore & Vancouver, 14th June, 2012
The most positive aspect of a very strong set of results was the increased gross written premiums at US$ 209.7 million, up 6.5% on last year. Growth was certainly the underlying theme, with the total number of Members up by 5.3% to 5,922; vessels entered increasing by 8.1% to 31,341 and total gross tonnage rising to 19.8 million, an up-lift of 11.2%. Shipowners’ financial security was also reinforced by a growth in free reserves to US$234.5 million resulting in total funds of US$ 502 million, an increase of 16.5% on the position at the previous year end.
In commenting on the results, Charles Hume, Chief Executive said, “We believe that our further growth last year is indicative of the continued strength and stability which our Members find in the Club during uncertain and volatile times.”
Given the difficult trading conditions in all markets over the twelve-month operating period, Shipowners was also pleased with its strong technical performance. The overall surplus of US$ 46.5 million consisted of an underwriting surplus, up 13% on last year at US$ 28.6 million and an investment return of US$ 18.9 million before taxation. The underwriting result represents a combined ratio of 84.9%, in line with the previous year and the investment result is a 4.8% return on capital.
“Our technical result confirms our determination to underwrite to a modest surplus and is reflected in our average combined ratio over a ten-year period of 97.1%. Our Members appreciate that we have no additional or release calls and the Club’s ‘what you see is what you get’ approach. We look forward to working together with our Members in continuing to enhance the financial security and service that we provide.” said Hume.
Shipowners’ steady growth has been founded on a superior service to its Members, including loss prevention advice, claims handling expertise and responsive underwriting. Recently, additional investment in staff has been significant, strengthening the Club’s resource in all three of its operational offices in London, Singapore and Vancouver. New product development is also key to Shipowners’ growth strategy and a commitment to policy wording simplification in certain vessel categories, notably yachts last year. With fishing and passenger vessels to come, this has met with an encouraging degree of success.
ENDS
Financial Highlights as at 20th February 2012 (vs 2011)
- Net result: Overall surplus of US$46.5 million (US$52.9 million)
- Gross premiums earned: US$209.7 million (US$196.8 million)
- Claims incurred, net of reinsurance: US$115.4 million (US$106.3 million)
- Combined ratio: 84.9% (85.0%)
- Operating expenses: US$43.0 million (US$40.5 million)
- Investment return: US$18.9 million gain (US$27.6 million gain)
- Free reserves: US$234.5 million (US$187.9 million)
A pdf of the full Annual Report 2012 is available for download at www.shipownersclub.com
Notes for Editors:
The Shipowners’ Club is a mutual marine liability insurer, providing Protection & Indemnity insurance to smaller and specialist vessels since 1855. The Club currently insures over 31,000 vessels from 5,922 Members worldwide and is a member of the International Group of P&I Clubs.
The Club has offices located in London, Luxembourg, Singapore and Vancouver.