The Shipowners’ Club has reported a marked improvement in its profitability and capital reserves in the first half this year.
The London-based protection and indemnity insurer recorded overall $15m net profit for the six months, compared with a $1.8m loss in the same period last year.
Focusing on small, specialised ships, the club improved its underwriting figures from a $2.1m deficit in the first half of 2020, to a $941,000 loss this year.
The Shipowners' Club's combined ratio, which reflects underwriting performance, is 101%, indicating a loss.
However, the Shipowners’ Club's underwriting result is one of the best among the International Group of P&I Clubs’ 13 members, during a period of expensive claims and challenging market conditions.
The Shipowners' Club was also helped by a $16.6m investment return this year, compared with $752,000 in the same period last year.
As a result, it has recorded a considerable increase in its free reserves, from $338m at the end of June 2020 to $394m at the same juncture this year.
Supporting members
Premiums also increased from $113m to $120m. Tonnage entered with the club grew from 27.8m gt to 27.9m gt, while it achieved a 98% retention rate at the February 2021 renewal.
The Shipowners’ Club's chief executive, Simon Swallow, said its focus has been on supporting its members through the difficulties caused by the pandemic.
“We know that challenges remain for our members and this also extends to the club, where we have seen the cost of claims escalate,” he said.
