The Norwegian Hull Club (NHC) plans to pay back 7.5% of 2022 premium, amounting to $13.6m, to its members after another strong year.
Chief executive Hans Christian Seim described the financial performance as “healthy”, allowing it to return cash to its members subject to board approval.
The main setback for the club has been a downturn in investment returns.
“Despite financial markets that have experienced extreme and highly unusual losses at around 20% both in the stock market and on long-dated bonds, we have been able to grow our portfolio and avoid a significant frequency of major claims,” Seim said.
“2022 has thus been another healthy financial year for the club and once again we are in the position of having a profit that we can share with our members.”
The Bergen-based mutual has also made progress in insuring sustainable shipping-related businesses that contribute to decarbonisation. The NHC is a founding member of the Poseidon Principles for Marine Insurance.
Seim said the club had a “leading position” in offshore wind market and has been growing in providing insurance cover for battery-powered and LNG-fuelled vessels.
“We promise to continue doing our best to support you in your journey to zero emissions by tailoring insurance products to new propulsion systems, as well as maintaining a constant focus on reducing the risk of accidents resulting from the introduction of new technology,” he said.
The NHC said it provided insurance for 10,639 vessels and earned $337m in premiums last year, compared with $267.7m in 2021.
Its combined ratio was 78% compared with 82% a year earlier.
It insures a further 141,390 seafarers under its medical plan, Marine Benefits.
It is the second-largest Nordic marine insurer with a 25.5% market share, according to the Nordic Association of Marine Insurers.
