Norwegian insurer Gard has reported a $68m profit for the 2020 policy year thanks to the improving marine and energy market and strong investment returns.
Gard made a $93m profit in the previous policy year.
In 2020, Gard’s marine and energy and its mutual protection and indemnity businesses together reported a combined ratio of 104%. The figure, which reflects the balance of income and claims expenses, indicating an underwriting loss.
However, looked at individually, the combined ratio for the P&I business was a loss-making 111%, while marine and energy delivered a profitable 93% combined ratio.
Gard chief executive Rolf Thore Roppestad said it had been a difficult year for P&I because of Covid-19 related crew claims and an exceptionally expensive year for International Group of P&I Club pooled claims.
“While marine and energy has delivered a strong profit, our P&I business has been impacted by some major claims — both for our own account and pool claims from the International Group clubs, which have risen sharply,” Roppestad said.
“Another issue was a 50% increase in the number of people claims caused by Covid-19. Despite incredibly challenging conditions for owners in the last year, with significant operational hurdles to overcome, Gard members continue to run quality operations which is reflected in our results.”
Strong investment returns
Gard earned a gross premium income of $922m. It also made a strong investment return of 5% equalling $113m.
The Arendal-based mutual has the most robust finances among the International Group members, with its free reserves now standing at $1.2bn.
Roppestad said this February’s P&I policy renewal had been the most successful in Gard’s history.
