Theprotection and indemnity club’s free reserve has increased by $15m to $301.2m withmost pointers turned in a positive direction after a loss of more than $17m over the previous couple of years.
Theincrease in free reserve is normally equivalent to the surplus althoughaccountancy conventions sometimes produce a difference.
Theclub had previously projected a small increase in the free reserve while theStandard & Poor’s rating agency had forecast a bottom line surplus of $2m.
Thecombined ratio of Steamship Mutual was 96.7% indicating an underwritingprofit.
Thegain on the club’s investment portfolio of $8.4m was however modest and equatesto a return of 0.9%.
Theclub is telling members that a reduced return on bonds, which account for themajority of the portfolio, dragged down higher returns on equity and hedge fundinvestments.
SteamshipMutual experienced a reduction in the number and value of attritional claimsbut in common with rivals is seeing an increase in larger casualties.
Overallthese is a 7.5% reduction in claims to $229m compared to the previous year includingthose incurred but not reported (IBNR) and after adjustment for reinsurancerecoveries.
SteamshipMutual however had two claims large enough to be pooled with the other P&Iclubs.
The 11,400-gt Philippine ro-ro ferry St Thomas of Aquinas (built 1973) sankfollowing a collision with a cargoship resulting in a disaster that left 120dead or missing.
The1,032-teu containership Heung-A Dragon (built 1973) grounded and caught firefollowing a collision with a handysized bulk carrier.
Ownerstonnage in the club rose by 3.3m gt during the year to lift the total enteredtonnage to 113.7m gt.
Premiumfor the current year is projected to be 8.2% higher following a 10% generalincrease and a rise in deductibles.
