Steamship Mutual predicts significant surplus ahead of the P&I renewal |
Press Release |
|
London, 14 December 2010 |
Steamship Mutual has today published its
Pre Renewal Report for 2010, providing its Members with an update on the Club’s progress so far this year, in preparation for the forthcoming renewal.
The following are the highlights:
- Excellent underwriting results continue despite the effects of “churn”.
- Free Reserves expected to increase significantly at year end to further enhance the Club’s financial strength.
- Owned tonnage growing with a 5.1 million GT increase in the first nine months of 2010.
- New investment strategy implemented with returns of over US$ 32.9m as at 20th November 2010.
- No General Increase for both P&I and FD&D at the 2011 renewal.
Gary Rynsard, CEO, said:
“Most commentators agree that we are in a period of unusual uncertainty so far as the prospects for the world economy are concerned. No-one can predict with any degree of confidence whether we are in for a gradual recovery or the second leg of a downturn. The aim of the Club in this scenario is to provide excellent levels of service, further strengthen the capital base and provide stability in the cost of insurance for the Members.
It is pleasing to report that performance for the first nine months of the year has been better than expected supported by an improvement in the 2009 year and good returns on the investment portfolio.
Absent a particularly poor fourth quarter for claims on the Club or Pool we expect a fourth year of underwriting surplus which further stabilises the three year average combined ratio. The year to date investment return and a modest yield for the remainder of the year indicates that, barring any significant change in investment markets, free reserves will rise by approximately US$ 35 million at year end. This marks further progress in meeting the objectives for stable capitalisation with an appropriate buffer above regulatory and rating agency requirements.
The Board has been able to set a zero standard increase for 2011 thereby giving the Members the benefit of the Club’s strong performance.”
...Ends…
Note to Editors: Additional photography and comments are available upon request
Press contact:
Jackie Callard
+44 (0) 20 7650 6515
jackie.callard@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
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