The UK Club has reported a $32m deficit for the year ending 20 February 2019.
The London based protection and indemnity (P&I) mutual said that claims in excess of $3m had doubled in the year leading to a combined ratio of 114%.
A combined ratio over 100% indicates a technical underwriting loss.
“ The cost associated with these additional claims was nearly $40 million which equates to an additional 15% on the combined ratio,” the Andrew Taylor-led UK Club said in its earnings statement.
The UK Club reported a modest investment performance, with investments increasing 1.4% over the year.
However its finances remain strong with a $505m in reserves.
The UK Club hinted that premiums may have to rise to cope with the increasing claims.
“Although the cost of large claims may be exceptional, it highlights the need for future action on premium rates,” the UK Club said.
