Marine insurer Skuld has reported a financial result of $126 million for the year ended February 20, 2024, with a positive technical result of $60 million. The technical result improved by $45 million, leading to a net combined ratio of 86%.
Strong premium growth was seen in both mutual and commercial lines, driven by strong renewals with increased rates and new vessels entering Skuld during the year. This contributed to gross earned premiums and calls amounting to $527 million.
Ståle Hansen, Skuld president and CEO, stated that despite significant geopolitical challenges and financial volatility affecting international shipping and trade, the firm achieved a strong result.
“This demonstrates our ability to deliver top-line growth and a solid bottom line, allowing us to balance both a return to members and to retain sufficient capital for volatility and our growth ambitions ahead,” he said.
The financial year saw a benign claims environment within P&I, especially in the mutual line of business. However, the physical damage line faced increased competition and a heavier claims environment.
Net claims incurred totalled $278 million, compared with $287 million in 2022/23. The international group (IG) pool cost was $24 million, a reduction of $5 million from 2022/23, with no new pool claims reported by Skuld this year.
The gradual improvement in the technical result of the mutual book of business continued in 2023/24. Based on the strong contributions this year, a premium credit of $10 million will be returned to Skuld’s mutual members for the policy year 2023.
High treasury yields and positive expectations for AI-driven technology contributed to strong investment income from fixed income and equities. Total investment income, including fair value changes through other comprehensive income (OCI), was $75.5 million for 2023/24, with an investment portfolio return of 7.2%.
Total tax expenses, including tax on OCI, amounted to $9.3 million, mainly due to positive results in the Norwegian Association.
Skuld noted that its financial and solvency position remains robust, with contingency reserves at $551 million, leaving the company well-capitalised for future growth. Skuld is well above all regulatory solvency requirements and aligns with its own stricter internal solvency targets set by the Board.
For the first time, Skuld also reported on the Poseidon Principles for Marine Insurance for the H&M portfolio and disclosed Scope 3 emissions for its mutual P&I and H&M portfolios, ensuring transparency in both mutual and commercial product lines in line with the UN’s sustainable development goals.
Hansen added that sustainability and ESG are central to Skuld's strategy. He highlighted the company's commitment to reporting emissions for mutual P&I and H&M business portfolios, supporting members and clients in achieving UN sustainability goals.
“I extend my heartfelt thanks to the Skuld team. Their dedication and professionalism are the foundation of Skuld's strength. Together, we are making a difference in the marine industry, and rest assured, we are genuinely excited about the journey ahead,” Hansen said.
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