The London P&I Club has reported a $10.4m profit in the 2021 financial year after members were asked to pay an additional supplementary call.
The surplus helped the protection and indemnity club to increase its free reserves to $164m.
The London Club also reported a combined ratio of 92.4%, indicating that its underwriting activities were in the black.
However, the club was hit by costly Covid-19 related claims and an unusually high number of claims over $1m.
Without the supplementary call being included in the accounts the London Club would have shown a loss-making combined ratio of 155.2% and a $65.8m deficit.
London Club chief executive Ian Gooch said the results indicated the importance of improving the London Club’s underwriting performance. At last February’s renewal the club applied a general increase in premiums, and rerated some members, while some members were not offered renewal terms.
“The February 2022 renewal was a central part of this work and involved a strong focus on the sufficiency and sustainability of rating and deductible levels. The vast majority of our members supported this approach. As a result and after a very tough period the club has moved into the current year bolstered by important improvements to the rating and risk profile of the membership base,” Gooch said.