The Oslo based protection and indemnity club that is one of the main proponents of diversification into new markets reports a surplus of $29m for the year to February 2014.
This is an improvement on the $17.5m surplus of the previous year and the $24.4m result of 2011 but below the high profit seen in the two previous years as marine insurers bounced back from the global economic crash of 2008.
The result boosts Skuld’s free reserve to a new record of $335m.
The outcome points to a strong performance by the core Skuld P&I club as the Lloyd’s of London operation, Skuld syndicate 1987, has so far been in the red although chief executive, Douglas Jacobsohn, is anticipating that the 2013 year will ultimately be profitable.
The Skuld group reported a $31m surplus at the nine month stage so appears to have suffered a final quarter hit that cost about $2m.
Skuld's combined ratio crept up to 99% for the year but crucially stayed the right side of the break even line so maintaining Skuld's unmatched 11 year record of underwriting profitability.
Combined ratios, calculated by dividing claims and expenses by premiums, are a key measure of underwriting performance, with 100% indicating break even and lower figures profitability.
Skuld wrote $379m of gross premium in 2013, an increase of 19% on the previous year so is on track for a goal of achieving $500m of premium in 2015.
An investment return of 5.4% was well above budget expectations despite a conservative financial strategy.
The ‘A’ rated insurer has so far issued only an outline result with detailed information on how the year performed not due for about another month.
"A strong financial position, growth from commercial operations and innovation in services will remain the key objectives for Skuld's leadership,” said chief executive Douglas Jacobsohn who is due to hand the helm to his deputy, Stale Hansen, next February.
“The 2013 result further validates and enforces Skuld's long term strategy of premium growth through the competence and service of its people combined with further diversification into new products and geographical areas," added Jacobsohn.
A run of profits are being reported by the marine mutuals as the results season gets underway with the Norwegian Hull Club currently leading the pack with a $52.7m surplus, TradeWinds’ edition of tomorrow reports that Den Norske Krigsforsikring for Skib (DNK), the Norwegian war risks club, rang up a surplus of $49m while the Swedish Club made $17m.