The Standard Club’s balance sheet was hit by $30m in costs linked to its withdrawal from the Lloyd’s of London insurance market, according to its latest earnings statement for the year ending 20 February 2019.
The Standard Syndicate announced its withdrawal from Lloyd’s last year after a succession of losses.
However, the mutual profited from the addition of $18m in revenue from the Strike Club which joined the Standard Club stable in January this year.
The Standard Club also earned an investment return of 2.2%, which helped improve its figures.
The net result was a $27m reduction in the mutual’s free reserves compared to the previous policy year. The Standard Clubs free reserves now stand at $435m.
Chief Executive Jeremy Grose described the Standard Club as “in good financial shape.”
Commenting on its free reserves he said: “This is still ahead of the position two years ago and the club remains well capitalised, with free reserves well in excess of regulatory and rating agency capital requirements.”
The Standard Club said it broke even in underwriting terms, with a combined ratio of 100% indicating that premium income matched expenses and claims costs.
The London based P&I Club said it had been tough with members at the February policy renewals to protect its underwriting performance.
“As part of our commitment to break-even underwriting, at the renewal we made a decision not to maintain the membership of some members who were either unable to meet the club’s expectation for first-class operating standards, or who were not prepared to pay premiums that reflected the risk that they brought to the club,” Grose said.
The Standard Club’s book reduced to 3% to 155 million gt in the policy year.
