The Swedish Club’s Board, meeting in Athens yesterday (November 4), agreed a 10 per cent general increase in P&I premium for the 2005-06 policy year, excluding adjustment of reinsurance cost. Hull premiums will be adjusted on a member-specific basis, to reflect claims performance and exposure. FD&D will be renewed at current rates, adjusted on an individual basis. Here, the Board also decided to set a USD 5 million limit on FD&D entries.
These decisions were taken at the recommendation of Club Managing Director Frans Malmros. He presented a report to the Board making five key points:
• The Swedish Club’s financial strength increased in 2003, due to relatively high investment returns. In addition, claims numbers and values were within forecast.
• Investment income in the current year is running at moderate levels and the outlook is cautiously positive.
• Hull claims in 2004 are running at a frequency lower than forecast, but values are likely to be higher than predicted – with collision-related claims especially prominent.
• The frequency and severity of P&I claims is better than forecast in the current year, although the inherent volatility of this class means that the picture can change rapidly.
• The Club’s FD&D business is progressing satisfactorily, with claims within expectations.
Commenting on the outcome of the Board meeting, Frans Malmros said: “Two factors have influenced the Board’s decisions. Firstly, shipowners’ increased liabilities are reflected in P&I exposure and, secondly, the technical underwriting result should be positive. For these reasons, amongst others, the Board’s decisions have been taken to further enhance the Club’s financial strength over the coming year.”
For further information, please contact The Swedish Club
Claes Lindh, Director Underwriting, Tel: +46 31 638 400
E-mail: claes.lindh@swedishclub.com