|
UK P&I Club financial highlights for 2006 (year ended 20th February 2007):
- Financial year surplus of $46 million
- Free reserves up by 20 per cent to $263 million
- Investment returns substantially above target at nine per cent
- Club claims in line with expectations but a record year for Group Pool claims
An overall financial surplus of $46 million for the UK Club's 2006/7 financial year has increased its free reserves by 20 per cent to $263 million, according to figures approved this week by the Club's Directors at their meeting in Singapore.
Three factors determined this positive year end result: the record number and cost of claims on the International Group of P&I Clubs' Pool; investment returns almost double the Club target; and a reinsurance recovery from the Swiss Re triggered by the increase in outstanding claims.
In 2006/7, the Group filed 28 claims on the Pool, compared with the usual level of about 13 in any Group policy year. Only three small claims came from the UK Club. As a result, the Club's contribution to the Pool will substantially exceed any recovery. The Club is protected against this adverse impact through its reinsurance contract with Swiss Re under which it has recovered $54 million.
The previous record for claims by all clubs on the International Group Pool was 2004/5. Although this was also a record year for the UK Club's own claims, the policy year was closed without any supplementary premium. Reserving for the 2005/6 policy year has been strengthened to secure some significant personal injury and passenger claims but the Club does not anticipate a supplementary premium and expects to close that year in May 2008.
A highly satisfactory investment return of nine per cent ($76.9 million) was due to another strong performance by the Club's equity portfolio and correct positioning in the fixed income market. This return was almost double the Club's long term target for investment income of 4.5 to 5 per cent, and considerably greater than last year's achievement of six per cent ($49 million).
The UK P&I Club's membership grew by more than six per cent in the 2006/7 policy year. At the 20th February renewal, owned ships entered on mutual terms totalled more than 110 million gross tons.
Note to editors: The UK Club will publish its full financial statements and the Directors' Report and Review of the Year in July. Highlights of the Club's finances at February 2007 are set out below. Further details are available from the Club Circular Ref. 8/07 Policy Year Review and Financial Highlights at 20th February 2007 published on the UK Club website. The Club will publish its full financial statements and the Directors' Report and Review of the Year in July.
For further information:
Hugo Wynn-Williams/Nick Whitear
Thomas Miller P&I Ltd
Tel: +44 (0) 20 7283 4646
e-mail: hugo.wynn-williams@thomasmiller.com
nick.whitear@thomasmiller.com
Issued by:
Martin Rowland
Dunelm Public Relations Ltd
Tel: +44 (0) 20 7480 0600
Fax: +44 (0) 20 6480 0606
e-mail: info@dunelmpr.co.uk
|
