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.
The Club's performance over the first six months of the year has been extremely strong. After six months of the year, total notified claims on the prudently reserved 2016 policy year are encouraging with few large claims within the Club or Pool retentions. Claims on prior policy years have also developed favourably. Full details of the Club's half year financials are available in the attached '2016 Autumn Review'.
At the half year, the UK Club holds free reserves and hybrid capital of $559 million. The surplus achieved in the first six months of the year contributed to this increase in free reserves, despite uncertainty in global investment markets.
