NorthStandard has recorded an underwriting profit in its first set of financial results since it was formed through a merger in February.
The UK-based P&I mutual said its combined ratio, which reflects underwriting performance, for the year ending 20 February 2023 was a profitable 95%.
The underwriting figures were helped by a fall in its own retained claims and shared claims of more than $10m, which are handled through the International Group of P&I Clubs pool claims system.
NorthStandard’s retained claims fell by $134m in the year, while there were only three International Group claims recorded.
The main negative for NorthStandard was a 4% dip in investment returns caused by higher interest rates and a fall in the global equity markets.
The losses made a dent in NorthStandard’s free reserves which fell to $684m at the year end, compared with $743m in the previous year.
The club rang up total premium income of $796m, compared to $704m in the previous year.
About $600m came from its core mutual P&I business and the remainder from its growing commercial specialty insurance lines. These now include charterers, fixed premium, renewable and offshore, aquaculture, strike and delay and hull and machinery and war covers.
NorthStandard was formed through the merger of Newcastle-based North P&I Club and the London-based Standard Club and is jointly headed by managing directors Jeremy Grose and Paul Jennings.
Pleasing results
Speaking to TradeWinds on the publication of the merged entity’s first results both were positive about the early development of what is now the shipping industry’s second-largest mutual.
“Thinking about the first three months, we have been pleased with the result so far,” said Jeremy Grose. “We feel it has been a careful and deliberate execution of the merger and we have had some significant successes in that S&P Global Ratings improved our outlook to stable.”
Jennings added: “The key thing is we have not rushed this at all. The opportunity to bring two businesses together in a considered way, and take the best from both, does not happen too often. So we are taking our time to do that and it is a deliberate process,” he said.
