Directors Report & Financial Statements for the year ended 20th February 2013


This year the Club has produced a surplus of $9.5 million, increasing the free reserves and hybrid capital to a new high of $494 million.  Underpinning this result was a respectable underwriting performance in the face of mounting claims costs, and an investment return of 3.7%, equivalent to $39.6 million. Overall this was a good outcome, but it does not allow for complacency. The increased claims on the 2012 policy year are a warning that, despite weak global economic growth, claims inflation, particularly in the higher value claims, continues to be present. It is therefore essential to maintain a disciplined approach to underwriting in the coming years to achieve the target of a balanced underwriting result over the claims cycle.

FINANCIAL HIGHLIGHTS
Surplus of $9.5m for this year increasing free reserves and hybrid capital to a new high of $494m.


FINANCIAL STRENGTH

  • Free reserves and hybrid capital increased from $486m to $494m
  • Free reserves and hybrid capital of $4.11 per gross ton
  • S&P rating: A- Positive outlook

CLAIMS VALUES

  • 2012 claims above $0.5m significantly higher than 2011
  • Attritional claims frequency remains low,but claims values drifting higher
  • Overall 2012 a more normal year,compared to exceptionally good 2011
  • Pool credit balance significantly in excess of $100m

UNDERWRITING DISCIPLINE

  • Last three financial years combined ratio averaged 100%
  • 2012/13 financial year combined ratio – 104%
  • Underwriting discipline maintained

INVESTMENT PORTFOLIO

  • Investment return of $39.6m for 2012/13
  • 3.7% return
  • Conservative asset allocation

CLAIMS FREQUENCY

  • Significantly reduced over last four policy years due to weakened state of shipping market
  • Frequency down for all classes of claim 
  • Anticipated to increase when shipping markets recover

The print run of our Report & Accounts has been reduced to save Club expenses.  We now provide all our Members and their brokers with a reference copy upon request.  The Report & Accounts is also free to download from the website.  Please call your usual Club contact if you require further copies.

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Piracy

Essential precautions and preparation against piracy, as well as additional information and resources, loss prevention advisories and useful external web links


Emergency Contacts


If you need to call our offices out of hours and at weekends, click After Office hours for a up to date list of the names of the Duty Executives and their mobile phone numbers. 

Ship Finder


This Ship Finder is updated on a daily basis. Members who need to advise the Club of updates to their recorded ships' details should advise their usual underwriting contact.