2018 Autumn Statement

  • The Club’s capital position remains strong with a small surplus of $2 million during the first half of the year.
  • At 20 August 2018, free reserves stood at $539 million which is broadly in line with total free reserves at 20 February 2018.
  • The strong capital position allowed the Club to repay its Hybrid Capital bond in full in August 2018. The $100 million bond, launched in 2007, provided the Club with the additional flexibility required to grow free reserve and achieve the Club’s strategy to build its financial strength.
  • Favourable claims experience over recent years coupled with strengthening capital have depressed premium rates across the P&I market.
  • Claim numbers continue to fall but a few large claims have increased the overall cost of notified claims in the first half of the year.
  • With premium rates at historically low levels, the Club is exposed to an increase in larger claims. The combined ratio for the first 6 months of 107% is higher than the Club’s target of 100%.
  • If this trend continues increases in premium will be necessary in the future for the Club to continue to meet its underwriting targets.

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