Britannia P&I has reported a $37m post-tax profit for the 2020 policy year despite running at an underwriting loss.
The London-headquartered protection and indemnity insurer said it made a $20.5m loss on its pure underwriting activities in the 2020 policy year, compared to a $29.3m profit in the previous 12 months.
The deficit is partly attributable to an increase in shared International Group of P&I Clubs’ pool claims, which totalled $478.1m in 2020, compared to $355.4m in the previous year.
However, the loss was more than made up for by a bumper year in the investment markets. Britannia made a 7.2% return on its investments, earning $59m in total.
Britannia chief executive Andrew Cutler told TradeWinds that there had been a “remarkable turnaround” in the investment market. But he cautioned that the club cannot always rely on similar investment returns in the future.
He said Britannia's IT capability and staff had played an equally important role in getting the P&I club through the pandemic.
“The people and IT element have proved themselves to be invaluable," he said. "The investment was down to luck, but everything else has been simply been hard work.”
The net surplus has been added to Britannia’s free reserves, which increased to $449m. In addition, Britannia also has $177.8m of funds held in Bermuda-based company Boudicca Insurance.
Britannia also returned $10m to members last year.
Britannia said its tonnage is now at a record high following a successful policy renewal this February, which had to be carried out remotely for the first time because of the pandemic.
“Britannia starts the new year with record tonnage after finalising the difficult process of negotiating the renewal remotely,” Britannia chairman Anthony Firmin said.
"While I welcome our new members, the club’s growth comes mainly from existing or returning members. For me, this is the real confirmation that Britannia provides a service, which is appreciated and valued by our members.”
