The UK Club at a glance
Standard & Poor's capital model
Autumn Statement 2017
2017 Half-Year Financial Highlights
- A solid performance from the Club at the half year.
- After six months, claims are slightly below average of the last eight years.
- The Pool remains favourable at the half year. The Club’s excellent record on the Pool has reduced the Club's Pool contributions steadily over recent years, and shielded the Club from the increasing costs of the very largest P&I Claims in the market.
- A strong 4%* investment return in the first six months.
- Underwriting performance has met the Club’s target on average over the last eight consecutive financial years. The favourable claims environment in the first half of the year has delivered a combined ratio of 95%*.
- Free reserves stand at $497 million with a further $100 million in hybrid capital –an increase of nearly $40 million since 20th February 2017.
- The Board expects to announce its Brexit plans by the end of the year with a view to being able to insure European risks in a new European subsidiary from the 2019 policy year.
Review of the Year 2017
The Review of the Year 2017 provides the latest perspective on the Club's financial position.
Despite a small number of large claims notified to the Club towards the end of the year, a decent underwriting result and strong performance within the investment markets have enabled the Club to record a surplus for the ninth year in a row.
The combined ratios for the financial year of 104% (when currency gains are excluded) or 100% (including the currency gains) are within the Club’s acceptable target range and demonstrate the Club’s resilience to such claims.
At 20 February 2017, the Club held free reserves of $458.4 million with a further $99.4 million held in hybrid capital.
For ease of reference a pdf of the Review of the Year 2017 can be downloaded here.
The Directors' Report & Financial Statements 2017 can be downloaded here.
IRS Closing Agreement
The UK Club has entered into a closing agreement with the United States Internal Revenue Service (IRS). This closing agreement secures exemption for the Club from Section 4371 Excise Tax, which applies to insurance premiums paid to a foreign insurer or reinsurer when the exemption is based on the provisions of an income tax treaty to which the United States is a party. The UK Club is now listed on the IRS website as a party to a closing agreement with the IRS.
For more information on the IRS closing agreement, please see the IRS website http://www.irs.gov/Businesses/International-Businesses/Exemption-from-Section-4371-Excise-Tax