Profits at Skuld haven take a tumble in the first half of this year after an increase in pooled claims.
In the first six months of the current 2018/2019 policy year, the Oslo-based protection and indemnity mutual reported a net profit of $2m compared to $14m in the same period in the previous year.
Skuld said claims from its own members and increased pool claims under the International Group of P&I Clubs had a “negative impact” on the result.
The insurer’s combined ratio was 112%, indicting claims costs exceeded premium income. However, Skuld partly made up for that through a $10m increase in premium and a positive investment income of $26.6m.
Skuld recently put its loss-making Lloyd’s of London syndicate, which it used as a platform to diversify its business, into run off.
Instead, it is now marketing its hull and machinery business under the name Skuld Hull in the company market.
Skuld Hull synergies
Chief executive and president Stale Hansen said Skuld Hull is now contributing positively to Skuld’s overall results, which justified its decision to diversify into the sector.
Commenting on the first-half results, Hansen said: “Despite the high number of reported claims, we are pleased with the half-year result, particularly given the challenging international marine insurance environment.”
“Due to the competitive and economic pressures facing the global marine risk market, it is crucial for Skuld to continue with our beneficial diversification strategy and retain our resolve to maintain a sustainable balance between financial strength, risk and growth. This balances the key to achieving low volatility for club members, and to remain a stable and robust risk partner for them into the future.”
