The Swedish Club has recorded a $5.2m deficit for 2018 following a slump in equity markets toward the end of the year.
The Gothenburg-based marine insurance mutual said its annual combined ratio was 99%, indicating an overall underwriting profit.
However, investment returns declined resulting in a -1.6% negative investment return at the end of the year.
Although the underwriting profit helped in part make up for the investment loss, overall it was not enough to prevent the Swedish Club slipping into the red.
The $5.2m loss comes before a 5% discount to members.
Despite the loss, Swedish Club managing director Lars Rhodin pointed to a number of positive factors and described the results as “healthy”.
Last year's investment loss had already been recovered by the end of January this year.
S&P Global Ratings upgraded the club in January to an A- rating and Rhodin said it continues to have strong capital adequacy.
The mutual also increased membership and tonnage at the February 2019 renewal.
Rhodin said: “Despite a market dominated by soft pricing and tough investment conditions, the Swedish Club emerged from 2018 with healthy results.
“The club reinforced its reputation for consistent underwriting performance, ranking among the top performers in the International Group by maintaining an average combined ratio of 98% over the last 10 years.
“The S&P ratings upgrade was a recognition of what we believe we already had in place — quality members, dedication and a commitment to excellent service from the whole organisation.”
