The Swedish Club has seen its earnings hit by the loss of a brand new X-Press Feeders containership in a fire off Sri Lanka.
In its half-year financial report, the club revealed it was the lead hull insurer for the 2,743-teu X-Press Pearl (built 2021).
The recently delivered containership was declared a constructive total loss after a cargo-related fire off Sri Lanka in May this year.
The Swedish Club's diversified insurance business — which covers both protection and indemnity and general marine insurance — reported a combined ratio of 132%, indicating a substantial underwriting loss in the first half of 2021.
The combined ratio in the first half of 2020 was 107%.
Swedish Club managing director Lars Rhodin admitted the club's earnings had been affected by high-profile claims.
A continued high level of International Group of P&I Clubs pool claims also hit the club's mutual business in the half year.
“The X-Press Pearl fire casualty and total loss provides a notable example of the nature of claims faced on the hull side of the business, where the club underwrites the lead share. In P&I, the high level of pool claims seen in the recent times has not abated,” Rhodin said.
A strong 2.8% investment return helped offset some of the underwriting losses.
The Swedish Club made a $13.7m pre-tax loss in the first half of 2021, compared with a $3.4m deficit in the same period last year.
In a more positive development, its bottom-line financial result was a $9.5m profit, compared with a $100,000 loss in the previous half year.
