Norwegian marine insurer Skuld has reported a $32m profit in the year to 20 February 2023 after the performance of its mutual protection and indemnity book of business improved.
The club’s overall technical result, which reflects the pure underwriting performance of both its mutual and commercial insurance lines, showed a profit of $15m, up by $45m on the previous year.
The P&I business broke even with a combined ratio of 100%, while the commercial marine hull and energy lines combined ratio was a profitable 94%.
Losses on the P&I activities have held back Skuld’s earnings in the previous year, but they recovered following an increase in premiums and lower claims.
The mutual and commercial lines of business grew with a combined net premium — after the removal of reinsurance costs — of $392m, compared with $365m in the previous year.
Skuld’s premium income is largely evenly balanced between its commercial and mutual business lines.
Net claims fell to $287m, compared to $318m in the previous year.
It also earned a profit on its investments of $4.7m, which was helped by the sale of group company Asta. Its financial and contingency reserves now stand at $445m.
Chief executive Stale Hansen described the result as “solid”, given difficult trading conditions in a landmark year for the historic insurer.
“The year was indeed extraordinary. On the up-side, we vastly enjoyed our joint celebrations of the 125-year anniversary together with our members, clients, brokers, and friends,” he said.
“On the other hand, the year was, and continues to be predominantly impacted by the devastating war in Ukraine, and the geopolitical and financial landscapes remain volatile and unpredictable in the foreseeable future.”
