Marine insurer Gard reported a profitable underwriting result for the first half of the year after claims improved and premium income increased.
Its combined ratio, which reflects underwriting performance, for its marine & energy business and mutual protection-and-indemnity business was 85%, giving it a technical underwriting profit of $68m for the six-month period.
The result is a considerable turnaround from the loss-making 113% combined ratio in the previous year.
Overall, it made a post-tax loss of $49m after registering a $109m negative investment return.
In 2021, it made a post-tax loss of $27m.
Investments, which are mostly in fixed-income bonds, were hit by an increase in US interest rates.
In the half-year period, Gard’s gross written premium increased to $577m, compared with $473m last year, mostly due to increased marine and energy business.
P&I premium was $306m, compared with $260m last year, and marine & energy premium was $271m, up from $214m.
Although there has been a marked improvement in P&I underwriting results, chief executive Rolf Thore Roppestad said he plans to raise premiums by between 5% and 7% at next year’s renewal, to counter inflation.
“We have set our internal target and, as a consequence, most of our members will have an increase in the region of 5% to 7%. We don’t see any reason for major rate hikes, but we need adjustments for the current inflation. We are covering cargoes and contracts where values are increasing and repairs are getting more expensive,” he said.
The combined ratio for P&I was 98% with a profit of $5m. But the marine & energy business was by far the stronger performer, with a combined ratio of 68% and a $35m profit.
Gard’s free reserves stood at $1.2bn at the end of the first six months.
Roppestad said: “These results show that, despite market turbulence, Gard remains strong and stable, and we continue to be well positioned to withstand the challenges ahead.”
He said Gard will again offer renewing members a 5% owners’ general discount in 2023.
“Our goal is to provide the financial strength and stability that our members and clients rely on,” he added.
