An absence of large and medium-size claims through the first quarter has led to the Norwegian Hull Club turning in the best underwriting performance for many years.

The two key underwriting measures were particularly favourable with the loss ratio just 53%, while the combined ratio was 66%.

The loss ratio means that net claims at the Bergen-based mutual ran to little more than half the net premium.

The club's combined ratios were higher than loss ratios as they are a measure of claims, plus expenses, compared to premium. Figures below 100% indicate underwriting profitability with percentages in the mid-60s unusually positive.

The Norwegian Hull Club rang up a $16m profit through the first quarter compared to $29.8m through the full 2017 year, with underwriting contributing $11.1m and the investment and financial side at $4.9m. The result lifts the club’s equity or free reserve to $307m.

Chief executive Hans Christian Seim said the main driver of the result was that there were almost no medium or large claims but the club’s disciplined underwriting was also a factor supporting the result.

“In life and underwriting, good luck is always important but I don’t expect the same pattern to continue,” added Seim.

Seim said the hull market through the first months of 2018 remained on the flat to improving trajectory seen in the latter part of 2017.

“The established market continues to be disciplined and to us it seems Lloyd’s has taken a position. But there are always exceptions with newcomers and entities seeking to increase their market share,” he added.

The second quarter is continuing to look good in claims terms, although not quite as favourable as the first three months.

Gross earned premium fell to just over $40m, compared to $44m through the first quarter of last year, or $168m for the full 2017 year.

This is attributed to lower ship values and a continued ample supply of capital to the marine insurance market, putting pressure on rating levels.

Gross claims for the quarter of $20.2m compared to $39.3m through the corresponding period of 2017 and $237m for the full year.

Claims in 2017 were, however, unusually high as a result of what the club described as a once in a century loss.