Norwegian marine insurer Gard has reported an underwriting loss for the first half of the policy year on the back of a rise in costly claims for protection and indemnity clubs.

The Arundel-based company said its technical underwriting loss was $54m for the six-month period. It also made a post-tax loss of $62m, on an estimated total call basis.

Gard’s net combined ratio, which reflects the balance of premium income and claims costs, was 116% — indicating a significant deficit.

The 13 members of the International Group of P&I Clubs and their reinsurers share claims above $10m in a pooling system.

At the half-way stage of this policy year, claims are estimated to be at an historic high of close to $400m.

Gard chief executive Rolf Thore Roppestad blamed the higher-than-usual claims for the underwriting deficit.

He said: “Our half-year results have been significantly impacted by an increased severity in major claims; both those for our own account and pool claims from the International Group clubs which have risen sharply.”

Gard is the largest and richest of the P&I clubs with $1.12bn in financial reserves. Despite the underwriting losses, it has decided to return around $18m to its mutual members by only taking part of the final dividend instalment of the year.

Roppestad said Gard is in a good position financially.

“Despite the negative results, Gard is well capitalised and within our target range," he said. "Our goal is to balance the group’s ability to help individual members and clients with the maintenance of the long-term financial health of the group.”

Gard has decided not to announce a general increase for the annual P&I renewal in February next year.

Instead, the organisation has decided to assess each member’s renewal terms based on their claims.

However, Roppestad assured members that the premium increases would be “moderate” and calculated at a level for Gard to achieve a net combined ratio of 102.5% in the upcoming policy year.