Posted on: 6 February 2020
At Steamship Mutual’s Board Meeting in Seoul on 4 February 2020, the Directors were pleased to note the continued growth in the Association’s owned entry from 20 February 2019 to 20 January 2020. An additional 3.9 million GT increased the Club’s combined owned and chartered entry to over 165 million GT.
In the eleven months ending 20 January the Club recorded a 5.5% investment return of $58 million, excluding the impact of currency movements.
Last October the Club’s strong financial position enabled it to order a capital distribution to Members amounting to 7.5% of premium paid for Class 1 P&I mutual entries in the 2019/20 policy year, in respect of vessels whose entries are renewed for the 2020/21 policy year.
Nevertheless, despite some positive claims developments over the course of the current year, the Club is forecasting a combined ratio in excess of its target of 100%. The General Increase ordered last October is intended to address this issue and restore underwriting balance.
As reported in an earlier Circular to Members, the cost of the International Group Excess of Loss reinsurance contract and the Hydra reinsurance programme for 2020/21 is unchanged.
Armand Pohan, Club Chairman, commented: “We welcome the Club’s continued growth over the third quarter, reflecting Steamship’s financial strength and high levels of service. Nevertheless claims are somewhat higher now than two years ago and at this renewal premium levels are being adjusted accordingly. The Directors will in due course consider whether a further distribution of capital can be made.
In a few days, the newly formed Europe Club will be underwriting our European business from Limassol, providing the same levels of cover, financial security and service as the London based Club.
I am glad to say that the Club’s renewals are proceeding satisfactorily and we look forward to serving our Members in the coming year.”