2015/16 financial year results

• Owned tonnage increased by 6.3%
• Premiums reduced by -5.6% (NB the 2015/16 financial year included the -2.5% premium rebate relating to the 2014/15 policy year, equating to -USD 8.25m)
• The combined ratio as reported was 94%. This would have been 91.6% without the 2.5% premium rebate
• Reinsurance costs reduced by -8.5%
• Gross and net paid claims reduced by 14.4% and 22.8% respectively
• 16.8% reduction in net incurred claims
• USD 17.8 million underwriting surplus
• Marginal investment loss (-1% return)
• The investment loss was slightly greater than the underwriting surplus, leading to an overall deficit of USD 1.2 million
• Assets reduced by -1.2%, free reserves very slightly down (reduced by 0.2%)

The UK Club's accounts treat foreign exchange differently to most of the other clubs. The most common approach is to report the foreign exchange movement on outstanding claims within the claims cost heading, and the exchange movement relating to investments within the investment return. The UK Club's approach is to include all foreign exchange movements in a single item under foreign exchange. This accounting difference results in the UK Club's investment return appearing higher than others and the underwriting result not as positive as their peers. In 2015/16, if the UK Club had reported in a similar way to the majority of the market, the club's combined ratio would have been 87.4% rather than 91.6%.