Oslo-based protection and indemnity mutual Skuld has reported a $14.3m loss in the first six months of the current policy year.
The loss compared at a $2m profit in the same period last year.
Skuld attributed the loss to higher level of International Group of protection and indemnity clubs shared pool claims. Skuld said its share of International Group pooled claims affected its result negatively by $37m.
The insurer also said it had been also been hit by cruise ship claims related to the Covid-19 pandemic.
Skuld reported a positive 3% increase in investment returns.
But, it made a technical underwriting loss of $25.5m. Its combined ratio, which reflects the balance of premium income and claims expenses, was 115% indicating a loss.
As a result of the losses Skuld’s contingency financial reserves fell back from $466m at the end of the last policy year to $453m.
Outside of the mutual protection and indemnity business Skuld said its hull and machinery, offshore, charterers and freight, defence and demurrage lines contributed positively to its bottom line.
The losses in Skuld’s mutual P&I business are likely to add pressure for a further hardening of rates in the sector in the upcoming renewal next February.
Skuld president and chief executive Stale Hansen said: “This has been a challenging half year, but we are pleased with the performance of our commercial operations and positive investment returns. Our focus now is on rectifying the performance of our mutual book of business for the next policy year.”
Hansen said he was optimistic after the insurer experienced an improvement in performance in the second half of this year.
The Swedish Club is the other P&I mutual to provide half-yearly results.
The insurer reported earlier this year that it had recorded a small $3.4m loss in the first six months of the year.
