Oslo-based marine insurer Skuld has announced a $51.7m technical underwriting loss for the first nine months of the year.
The loss compares to $46.2m in the same period last year.
Skuld's negative underwriting figures have been caused by a costly series of large claims placed with the International Group of P&I Clubs, and a number of its own large retained claims.
In the third quarter, Skuld said its underwriting performance had shown signs of improvement, with its combined ratio falling to 117%, compared to 127% last year.
The overall net result — when investment income and other factors are taken into consideration — was a $20.5m deficit for the nine-month period, compared to a $10m loss last year.
Skuld made a 2.2% investment gain in the period.
Skuld's contingency reserves stood at $427.5m at the end of the third quarter, compared to $459.1m at the same point last year.
Skuld’s results are indicative of the struggles of protection and indemnity mutuals. All 13 P&I clubs have reported underwriting losses with the shared International Group claiming an impact on balance sheets.
Positive contributions
Skuld chief executive Stale Hansen said that the club's results had been helped by its diversification into hull and machinery insurance.
"In spite of this disappointing — but not unexpected — result on the mutual book of business, Skuld continues to see positive contributions from our commercial products, remaining firmly committed to our diversification strategy. I remain strongly optimistic about its long-term support of Skuld's renowned services to members and clients," Hansen said.
