2016/17 financial year results
- Owned mutual tonnage increased by 9%
- Premiums reduced by 2.8%
- Gross and net claims both increased by 5.1%
- Net incurred claims reduced by 5.8%
- USD 9.22 million underwriting surplus (despite the club returning USD 4.72 million as a credit to members)
- 3.4% investment return
- Overall surplus USD 45.8 million
- Net Assets increased by 4.8%, Free Reserves increased by 13.2%
Combined Ratio
The Skuld’s combined ratio continues below 100%. The reported 2016/17 combined ratio was 97.2% (deteriorated slightly from the 93.8% combined ratio in 2015/16). In both 2015/16 and 2016/17 Skuld paid back member credits (USD 4.86 million in 2015/16 and USD 4.72 million in 2016/17). If Skuld had not made these rebates the underlying combined ratios would have been 92.5% and 95.8% respectively.
Consolidated Financial Year Summary (USD 000s)
|
2014/15 |
2015/16 |
2016/17 |
| Income and Expenditure |
|
|
|
| Calls and Premiums |
411,246 |
409,980 |
398,515 |
| Reinsurance Premiums |
-63,622 |
-56,663 |
-71,636 |
| Operating Expenses |
-87,781 |
-87,971 |
-88,510 |
| Operating Income |
259,843 |
265,346 |
238,369 |
| Gross Paid Claims |
253,654 |
235,648 |
247,647 |
| Net Paid Claims |
224,598 |
224,197 |
235,696 |
| Net Change in Provision for Claims |
34,459 |
19,079 |
-6,552 |
| Net Incurred Claims |
259,057 |
243,276 |
229,143 |
| Technical Surplus (Deficit) |
786 |
22,070 |
9,226 |
| Investment Income |
12,352 |
-9,035 |
36,619 |
| Overall Surplus for Year (Deficit) |
13,138 |
13,035 |
45,845 |
| |
|
|
|
| Balance Sheet |
|
|
|
| Net Assets |
832,773 |
859,756 |
901,269 |
| Net Outstanding Claims |
497,578 |
511,526 |
507,194 |
| Free Reserves |
335,195 |
348,230 |
394,075 |
| Entered tonnage (GT, millions) |
2015 |
2016 |
2017 |
| Owned / Mutual |
74 |
78 |
85 |
| Skuld, probably sensibly, do not advise the entered tonnage on chartered and offshore business, however the premiums for these classes are as follows: |
| Chartered Premium (USD millions) |
50 |
50 |
38 |
| |
|
|
|
| S&P Rating History |
2015 |
2016 |
2017 |
| |
A |
A |
A |
| |
|
|
|
| Average Expense Ratio (AER) |
2015 |
2016 |
2017 |
| Five years ending 20 February |
12.9 |
13 |
13 |
Lloyd’s Syndicate and Club Diversification
Skuld provide no breakdown of the financial year figures for their Lloyd’s Syndicate, which are included within the overall results summarised on the previous page. The only indication of performance disclosed by Skuld is their policy year statements. The latest Syndicate policy year report is summarised below. Evidently, the Syndicate continues to provide a negative contribution to the club’s overall (otherwise very positive) results.
|
2014/15 |
2015/16 |
2016/17 |
| Premiums |
90,381 |
83,663 |
59,426 |
| Reinsurance |
-10,750 |
-8,621 |
-13,913 |
| Operating Expenses |
-33,717 |
-31,419 |
-22,999 |
| Operating Income |
45,914 |
43,623 |
22,514 |
| |
|
|
|
| Net Incurred Claims |
54,122 |
58,754 |
38,092 |
| Technical Deficit |
-8,208 |
-15,131 |
-15,578 |
| |
|
|
|
| Investment Income |
2,022 |
1,526 |
2,908 |
| Deficit for year |
-6,186 |
-13,605 |
-12,670 |
