The Swedish Club has improved its underwriting performance significantly in the first half of this year.

The marine insurance mutual reported a combined ratio of 92% in the six months to the end of June 2022, compared to 132% in the same period last year.

A combined ratio under 100% indicates an underwriting profit.

Managing director Lars Rhodin, who is to retire at the end of this year, said premium adequacy had improved after a 12.5% general increase applied at this February’s policy renewal.

Two years of exceptional claims for protection and indemnity insurers also appear to have returned to lower levels in 2022, which has helped profitability.

“This significant improvement in 2022 demonstrates last year’s volatility is being replaced by a more stable claims environment,” Rhodin said.

However, Rhodin said he is concerned about the impact of inflation on claims costs, adding that the trend would likely be for P&I rates to continue to harden.

“P&I and marine markets are currently fairly stable and more likely to harden than to decline, driven by the impact of inflation, of which increased transportation cost forms a part,” he said. “It should be noted, however, that inflation running at 8% to 9% in many countries is also likely to have an impact on future claims.”

The Swedish Club recently expanded by opening an office in Singapore.