The Standard Club has recorded a marked improvement in its underwriting performance in the last policy year.
In its 2021 policy year — ending February 2022 — its combined ratio was 105%, compared to 121% in the previous year, and 131% in the year before that.
A combined ratio of over 100% indicates a loss on underwriting activities.
Despite the improvement, the Standard Club’s free reserves fell by $50m, to $310m, at the end of the 2021 policy year.
The fall in free reserves was partly due to a negative investment return of 1.5%.
The club’s insured tonnage stood at 158m gt, up by 11m gt on the previous year. Premium and call income are forecast to be $350m in the current year.
Chief executive Jeremy Grose said the Standard Club's improving underwriting performance bodes well for the current year.
“The improvement in our combined ratio is thanks to our strategy of attracting carefully selected tonnage from international shipping centres, despite 2021/22 being a heavy year for pool claims. 2022/23 looks set to be another successful year and we are pleased to see the good progress of our coastal and inland business in Asia which launched earlier this year,” he said.
The Standard Club recently won approval from its members for a merger with North P&I Club which is on schedule to be completed in February next year.
Grose added that the improving financial performance of the Standard Club will add to the strength of the merged mutual NorthStandard.
“I am delighted that these positive results will significantly contribute towards a new, strong combined club which is able to deliver a broader range of services, offer greater innovation and even stronger financial resilience,” he said.