Gard reports an $87m after tax result but this is well below expectations as a result of a second half loss.
But the result is still good enough for Gard’s shipowner members to be given a ‘dividend’ with the deferred call for the year to February 2015 reduced to 15% from 25%.
Owners with mutual protection and indemnity cover from Gard will pay $37m less than the anticipated premium when the final instalment falls due in September.
The move means that Gard members have paid $186m less than originally estimated as a result of six years of consecutive premium concessions.
The result points to Gard maintaining its market leading performance in the first full year with new chief executive Rolf Thore Roppestad at the helm
The Norwegian insurance group reports a combined ratio of 88% indicating underwriting profitability and a return on investment of 1.8% but there was also a hit of $26m from increased pension liabilities with the result that the free reserve slipped below the $1bn watershed mark to $969m.
“We take a long term perspective on the business of assuming and pooling risk,” said Roppestad.“It is not just what we do, but how we do it that delivers the best value in the market. Our value proposition is to deliver right risk solutions, strong claims handling, loss prevention and crisis management capabilities. This set of strong results and growth in market share demonstrates our success in doing that.
Roppestad also reiterated that “Gard is strongly committed to the International Group pool as the most cost efficient and adaptable solution for providing P&I to shipowners.”
“The history of mutual P&I insurance is about developing solutions to meet the evolving needs of our members and customers. In a fast changing world, and a rapidly developing shipping environment, adaptability is more important than ever," he adds.
