War risk insurer DNK has been given approval by Norway's Financial Supervisory Authority to return $300m in cash to its members, after building up nearly $1bn in reserves.
The payment will be made to current members with a 10-year premium history with the Oslo-based mutual.
DNK has been shoring up its finances in response to the introduction of the Solvency II financial regulation in 2016.
With funds now running well in excess of the regulatory requirement, DNK has decided to return surplus cash to members. Even after the $300m refund, solvency levels are expected to remain at 200%, well ahead of Solvency II requirements.
"Just as we can levy additional premiums if the results require this, we can also return funds to the members when the scope for that exists," said DNK managing director Svein Ringbakken. "We can now share out $300 million to the members without challenging our ability to bear risk."
DNK currently has some 450 members, with 3,543 ships, and an insured value of $232bn.
At the end of last year it reported an annual post-tax profit of $77.3m.
DNK is one of the world's leading war risk insurers. Its members are made up of Norwegian owned or managed vessels which have some interest in the national shipping industry.
Over recent years it has increased its emphasis on loss prevention through the establishment of the Intelligence and Operations Centre in 2015. This year it added the Norwegian Maritime Cyber Resilience Centre (Norma Cyber), in cooperation with the Norwegian Shipowners' Association.
The Intelligence and Operations Centre identifies current and future threats against shipping, and alerts DNK members based on the real time positioning of their ships.
Norma Cyber is intended to prevent and respond to cyber incidents directed against both ships and member companies.
"The shipping industry has also had its fair share of ransomware attacks against the shoreside organisations, whilst this does not fall under the scope of DNK's insurance, Norma Cyber is tasked to protect and assist the members nevertheless," Ringbakken said.
