UK Cub has said that at the end of the 2021-22 policy year its financial position remained strong, with free reserves of $488m on February 20th 2022. The Club noted that it “continues to comfortably meet all its regulatory capital requirements and remains in the highest AAA band of Standard & Poor’s capital model”.
It also noted that the Club’s combined ratio of 115% was “a significant improvement over last year” and that its own large claim experience was positive for 2021/22. “However, the IG pool suffered its worst ever year (net of reinsurance), exceeding last year’s record”, the Club said.
Despite it being “another volatile year for investments”, with global investment markets performing favourably for much of the year until a market correction just before the Club’s year-end, UK Club still achieved a positive return of approximately $19.6m, or 1.9%. The Club said that this performance “was strong given prevailing market conditions” and noted that it offset much of the underwriting deficit.
Club chairman Nicholas Inglessis said that “the Club’s capital strength and reputation for excellent service were underpinned by an outstanding renewal. The Club has made significant progress over the last two years towards correcting premium ratings and stabilizing the underwriting result. The recent renewal demonstrated the continuing appeal of the Club to Members.”
Andrew Taylor, CEO of managers Thomas Miller P&I, said that “the Club remains well placed to deal with future challenges and remains focused on providing excellent service to our Members. As premium rates have fallen over recent years, the Club has focused on its underwriting discipline and the progress demonstrated this year is a testament to the strength of the Club’s partnerships with its Members.”
Source: Insurance Marine News, May 30th 2022