Robust underwriting performance
At the first quarter 2019 Board meeting, maritime insurer The Swedish Club reported that it had continued to deliver robust underwriting performance and preserve strong capital adequacy in 2018, amid challenging market conditions. A combined ratio of 99% was achieved.
The investment was very volatile with the equity markets in free fall during December 2018. As a result, a negative investment return of -1,6% was booked at the end of December. Profits on the Underwriting side covered, in part, the investment loss. However, the overall result came to a deficit of USD -5,2 million before the P&I discount of 5%. It was noted that the investment loss was recovered in total by the end of January 2019. The Club retained an increase in members and volume at the renewals 2019.
Because of the disciplined underwriting and strong risk controls that the Club has consistently delivered, S&P Global Ratings raised its insurer financial strength and issuer credit ratings on the Swedish Club to A- with stable outlook. In particular, the Club’s enterprise risk management (ERM) capabilities had a resulting mitigating effect on the volatility experienced in 2018.
By Jake Frith
Related Articles
INDUSTRY NEWS
ENVIRONMENT
INSURANCE, LEGAL & FINANCE