Skuld is aiming to achieve a 5% increase in protection and indemnity premium at the policy renewal in February.

The figure is at the lower end of planned premium rises announced by the International Group of P&I Clubs members, reflecting its relative financial strength.

The increases announced so far have ranged between 5% and 7.5%.

Last year, under more challenging market conditions, the Norwegian club set a 10% target.

Skuld said the underwriting performance of its mutual product has been improving.

Its strategy to achieve growth through diversification is set to bring its total premium income to more than $500m for the current year, compared with $473m last year.

Large claims are also down, but the club has had to contend with a volatile investment market and inflation.

Although many of its financial markers are improving, Skuld said additional premium income would be required to cope with future market conditions.

Underwriting managers will assess their rating on individual member performance rather than apply a general increase across the board.

“Anticipating a more normalised claims environment going forward, the board continues to support the strategy of individual rate adjustments based on performance without a general increase and will be aiming for an overall adjustment of 5% of the Estimated Total Call…” Skuld said.

The club has based its business plan on diversifying out of its mutual P&I business into commercial insurance lines such as hull and machinery and energy, which now account for around half of its total premium income.