The Swedish Club celebrated 100 years as a P&I provider in 2010 with a strong result. The P&I portfolio grew by almost 20 per cent in GT terms during the 12 months to February 20, 2011, reaching 46.4 million GT. The highly positive result totalled USD 29.5 million, with healthy outcomes across all business lines. Insurance business produced a surplus of about USD 17.7 million, with the balance from investment returns.
Commenting on 2010 at the Club’s Board Meeting in Hong Kong on March 31, Managing Director Lars Rhodin said: “It was a special year for the Club and it is satisfying to report such strong underwriting results in our centennial year as a P&I mutual.
“The growth in our P&I book is strong and it was achieved with no easing of our firm commitment to quality. As for the Marine book, we achieved growth at a more modest level but our main objectives for the Marine business were achieved. We are building a stronger and more diversified book. Consequently, during 2010 we wrote more IV (Increased Value), Loss of Hire and War business and the combined ratio was better than 100%.”
Lars Rhodin told The Swedish Club’s Board that he was much encouraged by the 2010 results in terms of Combined Ratio: “The Combined Ratio was 87 per cent, taking account of P&I, Marine and FD&D. A Combined Ratio below 100 across all lines is hard evidence of the real progress achieved in recent years. The Club continues to gain financial strength. Our Free Reserves are once again at a record level, now exceeding USD 150 million.
“These are the reasons why we now see an increasing level of interest in The Swedish Club and its offering from shipowners of quality and the international broking community. There is a view in the market that The Swedish Club has achieved a harmonious balance between price and quality. In the P&I sector, we are also benefiting from the growing practice, among some larger owners, to spread cover over several Clubs. Today, The Swedish Club is always a potential P&I provider, when viewed against the key measures of price and quality.”
Turning to the recent P&I renewal, Lars Rhodin described the outcome as satisfactory: “We saw no dramatic change at renewal for 2011-2012. Our focus is on sustainable growth throughout the year, as we experienced in 2010. We also placed and will continue to place a great deal of emphasis on the achievement of appropriate and exposure driven pricing.”
The Swedish Club achieved a number of other milestones during 2010:
• The Club’s Pool balance continued to improve
• Reinsurance spending fell, as a result of new reinsurance arrangements which took effect at the start of the 2010-2011 policy year
• The green light was given for the Club’s important diversification, with the establishment of a new business line writing Hull & Machinery, Increased Value and Loss of Hire for Mobile Offshore Units, including FPSOs. The Swedish Club’s “Team Energy” is now established in Oslo, Norway
• The Swedish Club Academy AB, responsible for developing the global Maritime Resource Management (MRM) training network, had a highly successful first year as a separate operating entity
Looking to the future, Lars Rhodin says that The Swedish Club anticipates further expansion over the coming year: “We expect our membership base to continue to widen. We will also continue to apply our ‘Quality First’ rule when taking all underwriting decisions.
“At the same time, we are not complacent. We recognise that the claims environment was benign in 2010. We also recognise the inherently random character of major P&I claims and the likelihood that major Marine claims will increase as economic conditions improve. Whatever the future holds, The Swedish Club is in robust shape and ready to make fresh progress.”
Contact:
Henric Gard The Swedish Club, telephone: +46 31 638 400
TRS Public Relations, telephone: +44 1304 813 366
Editors note:
Please find the attached photo of Lars Rhodin, Managing Director of The Swedish Club (Photographer Jonas Ahlsén).
The Swedish Club was founded in 1872. It is a leading mutual marine insurance company, owned and controlled by its members. The Club writes Protection & Indemnity, Freight Demurrage & Defence, Hull & Machinery, War Risks, Loss of Hire, and any additional insurances required by shipowners. The head office is located in Göteborg, Sweden, and branch offices are located in Piraeus, Hong Kong, Oslo and Tokyo.
As at 1 March the Club covered 1.387 vessels for P&I, 690 vessels for FD&D and 1.451 vessels for Hull & Machinery.