The Swedish Club is set to add another 5 million GT to its P&I portfolio over the two years ending next March. Taking into account the rapidly growing book of charterers’ business, The Swedish Club will soon have passed the 30 million GT limit.

Frans Malmros, The Swedish Club’s Managing Director, told members attending the June 14 AGM in Gothenburg that the Club remains fully committed to two primary goals: continued growth and the retention of its status as one of the International Group’s strongest Clubs in financial terms.

Commenting on last November’s decision not to proceed with a merger proposed by Skuld, he added that The Swedish Club’s future will now unfold as “an independent mutual, based in Sweden and under the direct control of its members”.

Frans Malmros added that “2006 was a good year – significantly better than 2005”. He described the Club’s prospects as excellent, with enhanced financial strength providing the springboard for further progress. The Club’s free reserves at end-2006 stood at the record level of USD 101.9 million.

As at June 1 this year, the Club’s Hull & Machinery portfolio totalled 1,813 vessels of 74.9 million GT. The P&I-entered fleet totalled 815 ships of 22.5 million GT and another 1.5 million GT committed will bring the P&I portfolio to 24 million GT. Frans Malmros adds: “It is particularly pleasing to note that we are growing twice as quickly as the world fleet in terms of GT”. In addition, The Club has added a number of new members, which is also in line with its strategy to go forward on an independent basis. Both P&I and H&M entries are at record levels in terms of numbers and tonnage. In addition, 471 vessels (17.9 million GT) were entered for Freight, Demurrage & Defence cover. The Club further reports that its efforts to promote marketing of Charterers’ business have paid off well. Over the last two years the Club has grown its charterers’ book to some 4 million GT.

H&M claims costs in 2006 totalled USD 31 million – very close to the USD 31.6 million budgeted. The number of claims per vessel/year stood at the lowest level for a decade, although the number of costly claims increased in 2006. Groundings during the year accounted for 8% of the Club’s H&M claims but 26% of H&M claims costs.

As for P&I, the number of claims per vessel/year also continued to decline, to the lowest level for nearly a decade. At the same time, there was an increase in the number of costly claims. Over 55% of total P&I claims payments consisted of claims of USD 500,000 or more. Pollution-related claims continued to dominate the P&I picture. Pollution events accounted for just 4% of P&I claims numbers but 71% of total P&I claims payments in 2006. The vast majority of pollution claims involved non-tankers.