The Swedish Club has reported a combined ratio of 96 % for the first six months of 2018, in line with a policy of balanced growth and consistent performance. The Club is pleased to have now delivered an average combined ratio of below 100 % for ten years, despite a continued soft market for marine pricing and the third consecutive year of a zero general P&I price increase.
This solid underwriting performance balanced out prevailing weak investment conditions: an underwriting result of USD 4.7 million bringing the result to a surplus of USD 0.2 million before the agreed P&I discount of 5 %, effective 20 August 2018.
Free reserves are still on a high level of USD 210 million (after P&I discount effective 20 August 2018), enabling the Club to continue to grow according to plan. The Swedish Club currently insures some 2,700 ships on H&M and has doubled its volume in P&I over the last decade to in excess of 50 million gross tonnes – the inclusion of charterers’ liability bringing this total to over 80 million gross tonnes.
In the first half of the year, financial markets displayed increased volatility with signs that the global economy has lost some momentum after the strong 2017. Major stock markets and world indices were down at mid-year compared to the beginning of the year and concurrently, USD interest rates have continued to climb. In this environment, the investment portfolio showed a return of -0.4 %, in line with the Club’s benchmark.
Lars Rhodin, Managing Director of The Swedish Club says: “Looking ahead we will continue to work according to our strategy, which is to provide top quality and efficient all-in-one insurance solutions for global shipowners.”