Norwegian Hull Club members are to receive a 12% return on annual premium following a positive result at the marine insurer last year.
The cash back amounts to $14.2m and will be paid following approval at the upcoming June board meeting.
Chief executive Hans Christian Seim said 2020 had been an “extraordinary” year for the Bergen-based insurance mutual as it coped with the coronavirus pandemic and changes in the marine insurance markets.
“2020 saw the combination of a recovering marine and energy market, less available capacity and the absence of major claims,” Seim said.
He said that the Norwegian Hull Club's results had been helped by a hardening in the insurance market following a withdrawal of capacity in the Lloyd’s of London and UK market. But he said that a further hardening of the market will be required.
“Overall, the club’s technical result for 2020 was favourable. However, we believe the marine and energy market needs further strengthening before it has fully recovered,” Seim said.
In 2020, the Norwegian Hull Club earned gross premiums of $244.1m compared to $203.1m in the previous year. It received gross claims of $175.7m in 2020 compared to $199.1m in 2019.
The insurer's operating result was $56m in 2020 compared to a $7.4m deficit in 2019.
Norwegian Hull Club also made a 4.9% investment return in 2020.
Seim said: “As a mutual insurance company, this means that we have the pleasure of returning premium to our members following a year that has been tough for many.”
