Steamship Mutual Posts Record Results

The Club has issued the following Press Release:

Steamship Mutual, the leading P&I Club, today announced record financial results, after a challenging year for many P&I insurers as the market continues to experience record levels of large claims. 

Despite the difficult P&I claims environment, the Club achieved an overall operating surplus of USD27.6 million. Steamship Mutual’s free reserves have increased by 17.5% to their highest ever level, at USD185.8 million. Over the same period the Club’s entered tonnage has grown to a record 72 million GT.  

James Stockdale, CEO, commented, “Steamship Mutual continues to achieve its strategic objective of creating long term financial stability for a growing membership through prudent and disciplined underwriting. These positive financial results show that Steamship Mutual is continuing to grow while successfully weathering the current adverse claims environment. 

“Higher claims are an unavoidable side effect of the buoyant shipping market, which is likely to continue until a slowing world economy takes some of the pressure off and a solution is found to the chronic shortage of experienced crew. To succeed the Club must maintain its focus on sound underwriting, prudent financial management and effective loss prevention. If we stick to those principles, Steamship Mutual is well placed to flourish as a top tier P&I Club.”

Financial Highlights

• Operating surplus of USD27.6 million (up from USD0.8 million in 2007)
• Free reserves rise to USD185.8 million (up 17.5% from USD158.1 million)
• The overall total of cash and investments increased by USD20.2 million to USD690.2 million
• Claims environment remains difficult as the P&I market continues to experience record levels of large losses
• An overall combined ratio of 97.9% was achieved for the financial year, bringing the three year average to 108.3%.  

2008 Renewal

• During the year owned entered tonnage increased by 3.3 million GT and chartered tonnage by some 2.5 million GT
• Total entered tonnage was 72 million GT (up 9.1% from 66 million GT)
• Overall combined increase in premium from renewing members was approximately 13.0% against a 15.0% general increase set by the Directors
• New business entered at renewal will generate additional premium of USD15.7 million. 

…Ends… 

Note to Editors: Photography and additional comments are available upon request

Press contact:

Richard Stace
+44 (0) 7917 410 320
richard.stace@simsl.com

About Steamship Mutual

Steamship Mutual (managed by Steamship Insurance Management Services Limited) is a leading provider of Protection & Indemnity (P&I) insurance. As one of the largest P&I Clubs in the International Group, Steamship Mutual insures a diverse range of shipping around the globe, for both shipowners and charterers. 

Steamship Mutual offers a comprehensive range of P&I products and ancillary covers. The Club consistently delivers a first-rate service to its Members, providing high quality professional claims management and services, backed by a stable financial position and strong free reserves.  

With offices in London, Bermuda, Hong Kong, Brazil and correspondents in every major shipping port worldwide, Steamship Mutual employs highly professional and experienced staff including qualified lawyers, ex-senior mariners, and specialist insurance and claims experts. 

For further information visit: www.simsl.com

 Circular B.470 - Financial Update and 2008 Renewal