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.
The underwriting result has been supported by a strong investment return. The Club's investment portfolio achieved a healthy return of 3.7% over the first six months of the year with global markets performing above expectations.
The Club maintains a matched portfolio which has provided protection against the significant movements in exchange rates between some of the world's key currencies over the first half of the year, particularly between the US Dollar and Sterling. Although a significant proportion of the Club's costs are incurred in Sterling, the vast majority of income is received in US Dollars.
The Club has therefore taken the opportunity to lock in savings arising from the weaker Sterling for future years.
After six months of the year, the UK Club holds free reserves and hybrid Capital of $571 million. This equates to an increase of $24 million since the previous year end.
Full details of the Club's half year financials are available in the attached '2016 Autumn Review'.
The Club's Autumn Review is also available in the following languages.
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.
First-rate service relies upon the Club having a thorough understanding of what our Members expect from their Club and identifying any areas where we can improve. As I mentioned in the Autumn Statement in 2016, the UK Club Board announced our intention to carry out a Member Survey in 2017 in order to better understand and meet the service standards and expectations of the membership.
