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

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.

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


  • 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


  • 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


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


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


  • 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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Ship Finder

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