Skuld chief executive Stale Hansen said growth is “vital” to its business strategy to keep up with consolidation in the marine insurance market.
In an interview with TradeWinds, Hansen said consolidation moves in the protection and indemnity market, which saw the formation of the industry’s second-largest player NorthStandard this year, have made scale a critical factor in the business.
Hansen stressed that Skuld is currently the third largest of the International Group of P&I Clubs members, based on its total revenue, including its mutual P&I business and marine and energy business streams.
He said the “door is open” for a possible merger with competitor P&I clubs, but it has to be a suitable partner and that the club is also happy to go it alone.
“Growth through diversification remains vital to our strategy,” Hansen said. “Our door is open for M&A dialogues, although in today’s market, and with our robust financial strength and size, we stand very comfortably alone.
“Plus, we’re acutely aware that it can be difficult to combine those with a taste for rock ‘n’ roll with those who favour classical music. We don’t judge, but we see great advantage in choosing for ourselves which music to play.”
Given Hansen’s talents as a drummer and ambitious outlook, it is probably safe to assume he views Skuld as aligned more closely to a rock ‘n’ roll approach to business than a classical one.
Hansen pointed to the opening of its office in Tokyo as an indication of its intention to grow globally.
The growth strategy was clear at the most recent P&I renewal in February, when Skuld grew its mutual-entered fleet by 7.8% to 103.3m gt.
Its most recent accounts, for the year to 20 February, show its premium income was $473m, roughly split equally between its P&I and hull and machinery business.
Skuld’s P&I premiums increased by 12% over the year and its hull and machinery by 13%.
Hansen said he is comfortable with a position where the premium income is split evenly between the P&I and hull and machinery business.
Well-received move
He said the move has been well received by shipowner members that are using Skuld to source both lines of insurance.
Its financial reserves stood at $445m, increasing from $430m in the previous year.
Skuld is also back in the black with a $32m bottom line profit and a $15m technical underwriting surplus helped by a significant fall in International Group pool claims.
Skuld’s war risk exposure to the losses related to the entrapment of vessels at Ukrainian ports has also matured after the 12-month anniversary of the outbreak of the war led to claims settlement.
Environmental, social and corporate governance (ESG) principles now play a key part in how P&I clubs conduct their business.
Skuld has published its ESG report along with its annual report for the first time.
Keeping in line with the latest developments in shipping decarbonisation, Skuld has signed up to the Poseidon Principles for Marine Insurance.
The initiative is largely geared towards keeping Skuld’s hull and machinery book of business aligned with the International Maritime Organization’s decarbonisation targets.
In terms of diversity, Skuld said it had achieved 38% gender equality in its main managerial and key positions, and is aiming for 40% by 2025.
