The Shipowners’ Club has reported a $4.3m underwriting profit for the first six months of the year, following an upturn in premium income and decline in claims.

The protection and indemnity insurer’s combined ratio, which reflects underwriting performance, for the half-year period was a profitable 96%, compared to a loss-making 100.9% at the same point in the previous year.

The London-headquartered P&I insurer’s focus is on small, specialised vessels, but its result reflects a general improvement in the underwriting performance of P&I clubs after increases in premium at the February renewal.

The Shipowners’ Club said earned income had increased by 8%, while claims had reduced by 2%, compared to the same period last year.

The Shipowners’ Club’s figures were adversely affected by a 9% fall in investment income. The negative investment return has also impacted on the P&I club’s free reserves, which fell from $396.4m at the end of 2021 to $335m at the midterm point this year.

Despite the fall in investment income, chief executive Simon Swallow stressed the club is managing to achieve its goal of providing insurance services “at cost” to its members.

“The club sits in a healthy position at the half-year stage,” Swallow said. “Whilst investment returns have been impacted by ongoing global uncertainty, the underwriting result remains cautiously encouraging, notwithstanding the impact of inflation which we monitor closely.”