UK Club has reported that for policy year 2022/23 its GWP exceeded $500m for the first time, a result of the Club expanding its fixed premium P&I business. It recorded a combined ratio of 104%, down from the 115% booked the previous year. Mutual owned tonnage increased at renewal in February 2023 to 153m GT.
However, the Club said that rising interest rates and global inflation had impacted the Club’s investment portfolio, mostly comprised of fixed income assets. The value of the portfolio fell by 3.8% in 2022/23.
Free reserves were $430m.
Review of Open Policy Years
At their meeting in May 2023, the Directors closed the 2020 policy year. The deficit was transferred to the reserves.
The 2021 policy year deteriorated due to adverse movements, predominantly on large claims shared through the International Group Pool. The year is expected to close with a deficit. No supplementary premium is expected for the year.
For 2022 policy year, after 12 months, there had been few claims falling into the IG Pooling mechanism. Consequently, the cost of notified claims for the 2022 policy year was unusually low. The Club’s own large-claims experience had been broadly in line with expectations. No supplementary premium is expected for this year.
Source: Insurance Marine News 1st June 2023