Although the number of claims fell by 8% through the year to 20 February 2015 but the average cost of claims continued to rise and is now 20% higher than five years ago.
The UK Club reports a financial year combined ratio of 104% indicating a modest underwriting loss that is higher than the five year average of 101%.
But there was a 5% investment return.
“This has been a good year for the club and provides an excellent platform to take the club forward having weathered the impact of the high claims in 2013 and the challenging market conditions,” declared UK Club chairman Alan Olivier of South Africa’s Grindrod group.
Owners tonnage in the ‘A’ rated club increased by 3.5m gt to 127m gt with charterers and other non-mutual business raising the total to 225m gt.
The free reserve which included a $100m perpetual subordinated loan that qualifies as hybrid capital amounts to $4.32 per gross ton.
“The club’s average five year combined ratio is amongst the best in our market and underlines the financial strength of the club. We will continue to seek to maintain balanced underwriting and achieve the best results for our members,” added Hugo Wynn-Williams, the UK Club’s top manager.
