Skuld shoulders several large claims as it sinks to first-half underwriting loss

Several large claims tipped protection and indemnity club Skuld into an underwriting loss in the first half of 2024.

After several benign years, it reported a 37% year-on-year increase in club claims costs to reach $178.1m, according to results published on Friday.

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Pool claims — representing larger losses that are shared between the 12-strong International Group of P&I Clubs — more than doubled to hit $25.2m.

They contributed to an underwriting loss of $30m in the first six months, equivalent to a combined ratio of 111%. A combined ratio of more than 100% represents an underwriting loss.

But an increase in premiums from shipowners and a strong investment return of 5.1% outweighed the increased costs and allowed the Norwegian club to report an overall positive result of $25m.

Gross earned premiums and calls from mutual and commercial lines of business were up $21m on the first half of last year to hit $277m. Investment income was $54.3m, up from $19.1m.

CEO Stale Hansen said: “We are pleased to report a positive result in the first six months driven by a strong contribution from the investment portfolio.

“However, as the claims environment returns to more normal levels, the industry needs further rate adjustments to absorb higher claims costs.”