Japan Club records increase in reserves for 2022 business year

After a couple of years of depressing results caused by higher-than-acceptable claims levels, Japan Club on June 14th reported that for the 2022 business year it had achieved a net premium income increase of ¥13.50bn in 2021 to ¥30.31bn in 2022, while investment income decreased by ¥110m to ¥3.29bn.

Net claims paid decreased by ¥2.29bn from the previous year to ¥15.34bn, a result of a falling away of claims related to Covid-19. The provision for reserve for outstanding claims increased significantly, by ¥3.13bn, to ¥4.42bn.

A net surplus of ¥4.64bn was recorded and the reserve increased by ¥5.32bn to ¥27.44bn.

At The 617th meeting of the Board of Directors on June 14th the managers said that for the 2022 business year the top priorities had been to strengthen the Club’s core capital and to improve the balance of income and expenditure, thus stabilizing the financial base.

“Since we urgently needed to restore the reserve, which had decreased due to the losses recorded in the previous year, we developed the 2022 Financial Base Stabilisation Plan and collected unbudgeted supplementary calls of 25% for each of the 2020 and 2021 policy years”.

The Club also imposed a 10% general increase for ocean-going vessels, Charterers’ entries, and FD&D covers. For the Naiko Class entries, consisting of domestic vessels that make up in number the vast majority of the Club’s membership, although in terms of total tonnage and revenue the balance is far closer, an increase of 15% was imposed, based on individual loss records.

https://www.piclub.or.jp/en/news/37512

Source: Insurance Marine News 16th June 2023