Highlights
- Satisfactory year with an underwriting surplus of USD29.3m
- Strong investment return (7%) yielding USD61.9m
- Increase in total capital resources net of USD25m capital distribution
- Steady tonnage growth during the year and a strong 2020/21 renewal
- The Association is well placed to meet the financial and operational challenges of the COVID-19 pandemic
Financial overview
After a third consecutive renewal with a zero general increase, total calls and premiums for 2019/20 were down marginally on the prior year. However, lower claims incurred in the financial year resulted in a satisfactory underwriting surplus of USD29.3m and a net loss ratio of 79.9% (2018/19 – 83.8%). The well diversified investment portfolio produced a strong return of 7% overall, with equities being the strongest performer at 16.5%. All asset classes produced a positive result and the overall investment gain was USD61.9m, nearly twice the long-term target.
Capital resources grew by USD31.4m, after taking account of the USD25m capital distribution made to mutual Members in the year and remain above the economic capital target set by the Board.
In the period immediately after the year end, investment markets were impacted by the uncertainty caused by the COVID-19 pandemic and much of the investment gain made during the year was reversed. However, the Association’s strong financial position leaves it well placed to face the challenges posed by the uncertain global economic conditions likely to be experienced in the months and years ahead.
