Protection and indemnity insurer the Swedish Club has reported profits and strong growth in its financial reserves last year after it benefited from higher investment returns.
The Gothenburg-based mutual, which provides P&I, hull and machinery and a range of other marine insurance cover, said it made an operating profit of $24.6m in 2019.
It generated an investment return of 10%, which helped bolster its free reserves to $228m.
Swedish Club chief executive Lars Rhodin said: “Against the background of a significant movement of the market, the Swedish Club has positioned itself well.”
In underwriting terms, however, the Swedish Club is running at a deficit. Its combined ratio, which balances premium income against claims costs and expenses, was at 106%, indicating an loss.
The Swedish Club had attempted to address the underwriting losses through a 5% general increase at this year’s policy renewal. It is the first increase in premiums from the club in more than four years.
Despite the increase in premiums, its mutual shipowners and charterers P&I business is still growing and now exceeds 80m gt.
The Swedish Club said premium adequacy had also improved in its other marine insurance markets.
It now has 6,000 ships under both P&I and other marine insurance cover.
Rhodin described the Swedish Club’s ability to provide both P&I and marine insurance as an “all-in-one unique offering”. He said that the club is growing in financial strength and developing its services to members, including its loss-prevention initiative, Trade Enabling Loss Prevention (TELP), which provides automated alerts to ships.
“We have continued to advance during 2019; delivering one of the strongest solvency ratios in marine and P&I and, undertaking successful trials of our unique and innovative loss- prevention tool TELP, which allows members to receive on the spot, individualised loss prevention advice,” Rhodin said.
