The rating amounts to an assessment that the financial strength of the Gothenburg based mutual is at an ‘excellent’ level with AM Best taking the view that the outlook is stable.
AM Best notes that the club has been profitable in five out of the last six years with the free reserve increasing from almost $106m to $165m at the 20 February 2014 renewal. Since then the the Swedish Club has reported a half year surplus of $10.3m and a free reserve that has grown to $178m.
The ratings agency given priviledged access to the Swedish Club’s books said it was expecting a “good” pre-tax profit for the 2014 year.
AM Best said the Swedish Club had a strong five year underwriting performance with an average combined ratio of 99.2% despite the figures rising to around 110% in 2011 and 2012.
The investment performance has been more volatile with AM Best attributing this to a target of having 20% of equities, which it describes as a “high proportion,” in the portfolio.
The Swedish Club has a 'BBB+' rating from Standard & Poor’s but AM Best has a record of making more generous assessments of marine insurance mutuals.
“We are delighted that AM Best has recognised the importance the Swedish Club places on its strategy of steady progress within a framework of gross prime growth against a backdrop of a positive financial performance,” said managing director Lars Rhodin.
“The Swedish Club remains committed to meeting the needs of its members and the demands of a global shipping market,” he added.
AM Best says the fleet insured by the Swedish Club is highly diversified in terms of vessels types and location of ownership with 2,400 vessels of 90m gross tons insured for hull risks and more than 1,000 vessels of 40m gt of owners tonnage covered for protection and indemnity risks. Charterers entries lift the total to 57m gt.
