Protection & Indemnity 2016

North of England | www.nepia.com

Highlights (Excluding Sunderland Marine)

Highlights

  • North acquired the Sunderland Marine on 28 February 2014
  • The table and graphs show the income, expenditure and balance sheet results for North only

North 'only' highlights

  • Owned tonnage increased by 3.2%
  • Premiums reduced by 2.3%
  • Gross paid claims increased by 5.9%, net paid claims reduced by 4.9%
  • Estimates for outstanding claims reduced by USD 76 million
  • Huge, 43.6% reduction in total net incurred claims
  • Complete transformation in the underwriting result; from a USD 24.4 million deficit in 2014/15 to a USD 95.2 million surplus in 2015/16
  • In combined ratio terms, an improvement from 108% to 69% in a single year
  • Overall group investment loss approximately -1.2%
  • USD 92 million overall surplus for the year
  • Assets increased by 1.7%, free reserves increased by 31%

Highlights of the combined results for the merged North / Sunderland Marine group

  • At 28 February 2014, the point of merger, Sunderland Marine contributed USD 41.4 million to the free reserves of North (i.e. creating combined Group free reserves of USD 338.1 million)
  • The Group's free reserves increased to USD 428.1 million at 20 February 2016 (an increase of 26.7%)
  • The Sunderland Marine's technical results were also very positive in 2015/16, though not quite as spectacular as North. The Group combined ratio for 2015/16 being 73.3%

Consolidated Financial Year Summary (USD 000s)

2013/14 2014/15 2015/16
Income and Expenditure
Calls and Premiums 383,534 394,876 385,673
Reinsurance Premiums -77,885 -78,381 -75,852
Operating Expenses -51,833 -49,703 -50,463
Operating Income 253,816 266,792 259,358
Gross Paid Claims 299,477 318,825 337,702
Net Paid Claims 213,636 252,412 240,107
Net Change in Provision for Claims 17,991 38,826 -75,976
Net Incurred Claims 231,627 291,238 164,131
Technical Surplus (Deficit) 22,189 -24,446 95,227
Investment Income 22,151 8,921 -3,201
Overall Surplus for Year (Deficit) 38 -15,525 92,026
       
Balance Sheet
Net Assets 935,751 1,041,374 975,024
Net Outstanding Claims 623,477 703,265 586,249
Free Reserves 312,274 338,109 388,775
       
Entered tonnage (GT) in millions 2014 2015 2016
Owned / Mutual 131 127 131
Chartered / Fixed 49 43 54
Total 180 170 185
       
S&P Rating History 2014 2015 2016
  A A A
       
Average Expense Ratio (AER) 2013/14 2014/15 2015/16
Five years ending 20 February 12.5 12.4 12.4