S&P Global Ratings has given the Norwegian Hull Club (NHC) an "A" rating with a stable outlook, based on a forecast of continued profitability and premium growth.
The ratings agency predicted that NHC’s business performance will maintain the company's capital adequacy levels above the "AAA" standard.
According to S&P Global’s figures, NHC has increased premium income from $135m in 2018 to $230m in 2020.
Over the same period, the company improved its net income from $9.3m to $34.8m.
The specialist nature of NHC's business is earning it a premium on rates in the market, S&P Global said. NHC's main business lines are loss of hire, as well as hull and machinery.
“NHC holds a specialist position in the marine market, where it offers high-end loss-prevention solutions, and has the capacity to lead claims," S&P Global said. "These strengths have enabled the club to price premiums at the top end of the market and have contributed to its traditionally strong combined ratio.”
In a hardening marine insurance market, S&P Global said it expects NHC’s premium income to increase further to $241.5m this year and to maintain net income at $30m.
NHC chief executive Hans Christian Seim said the S&P Global report also recognised his company's sustainable approach to business.
“In addition to acknowledging Norwegian Hull Club’s solid capital base, the rating recognises our dedicated focus on reducing negative impact to lives, health, environment and property, and underpins our confidence in a service concept that our clients continue to rate to the highest level,’ Seim said.
