The London P&I Club says it is turning a profit on its underwriting activities in the first half of this year.
In an update on its financial position, the Bilbrough-managed mutual said it is seeing the results of derisking its business, raising premium and generally lower claims levels.
The club lost several major accounts at February’s renewal as it moved to restore its balance sheet to profitability.
As a result, its combined ratio in the first six months is less than 100%, which indicates a surplus on its underwriting.
The London Club said it had only one claim in excess of $1m in the period, whereas in the two preceding years, it had been hit by a “particularly unfortunate run of higher severity claims”.
It said its other business lines, including fixed premium and charterers insurance, are also right on budget.
Investment returns have also been positive, and the overall effect of this is that it has improved its solvency ratio to 150%.
For the full year, the club expects to report an overall surplus, although it is cautious because of the unpredictable nature of claims, interest rates and investment returns and the impact of inflation.
“The club’s financial planning for the current year anticipated a full-year combined ratio a little over 100% and an overall operating surplus with the benefit of a positive investment result,” it said.
“This full-year guidance remains unchanged and will inform the board’s planning for the 2024 renewal.”
