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.