Oslo-based marine insurer Skuld has reported a technical underwriting loss of $42.6m for the first nine months of the current policy year, due to a series of high-cost claims.

Its third-quarter loss was $10m, indicating a slight improvement on a $12m loss in the previous quarter.

Its combined ratio, a figure which reflects the balance of premium income and claims expenses, was 116% in the nine-month period, indicating an underwriting loss.

Skuld said that the loss was largely driven by the unusually high number of pooled claims, which are shared by the 13 members of the International Group of P&I Clubs.

The clubs and their reinsurers share the cost of claims that exceed $10m.

2020 looks like being one of the most expensive years on record for pooled claims.

Skuld added that a number of its own expensive retained claims contributed to the loss.

Skuld’s bottom line was helped by a substantial investment profit. A 5.4% investment return added $38m to its income.

Despite the losses, chief executive Stale Hansen described Skuld’s financial position as “robust”.

He said that losses in Skuld’s mutual P&I business were balanced by additional profitable income streams in the marine hull and machinery and energy business.

The mutual has also managed to secure significantly reduced operating costs on the back of lower travel and office leasing expenses during the pandemic.

Hansen also pointed out that Skuld expects to benefit from membership growth of between 5% and 10% this year.

Hansen said: “We are well-capitalised and the combination of our strong commercial operations with our financial discipline on the mutual book leave us well-placed to continue to weather the storm. Our strategy of diversification is standing firm and our commercial lines of business continue to deliver positive results.”

Skuld is also hoping to increase its premium income at the next annual policy renewal in February 2020. However, it has not declared the level of increase it is targeting.