Japan Club reports slight decline in premium income for 2023/24

In its report on the 621st Meeting of the Board of Directors Japan Club provided an outline of the financial results for the 2023 business year.

The Club said that it had continued to focus on improving its equity capital and balance of income and expenditure. It said that the balance of insurance income and expenditure had improved through various measures. But had not yet reached “the desired level”. “Moreover, the business environment for our Club remained uncertain, with claims becoming more expensive, due to continued global inflation and war risks, notably the Russia-Ukraine war and the Israeli-Palestinian conflict.”

Because of these factors, Japan Club applied a general increase of 7.5% for ocean-going owners’ entries, and 10% for charterers’ entries and Naiko Class entries for the policy year 2024.

Net premium income was ¥24.84bn, a decrease from the previous year when unbudgeted supplementary calls were collected. Investment income increased by ¥4.77b to ¥8bn, due to the exchange rate impact of the weaker yen, as well as rises in stock prices and interest rates.

Net insurance claims payments increased by ¥940million to ¥16.28bn, mainly because of large claims payments for cases that occurred in previous years. Provision for outstanding claims decreased by ¥3.21bn to ¥1.21bn due to the relatively low claims numbers in the business year 2023. Provision for policy reserves decreased by ¥3.7bn to ¥3.07bn. Consequently, underwriting expenses decreased by ¥5.99bn to ¥20.58bn.

As a result of the above, the Club recorded a net surplus of ¥6.86bn, enabling a “significant” increase in the reserve by ¥7.93bn, to ¥43.30bn, from the previous year to ¥35.37bn.
https://www.piclub.or.jp/en/news/39774

Source Insurance Marine News, June 26th 2024