Skuld contingency reserve at record high

Marine insurance provider Skuld said that the contingency reserve reached a record high of $421 million in the first nine months of 2017, up 15.6 percent compared to the same period of 2016.

“The first nine months have been challenging for some of our members who have experienced major losses,” said Skuld CEO Ståle Hansen.

“The number of small claims is low, but after nine months Skuld has experienced a few large claims and one confirmed pool claim. Hurricanes Irma and Harvey also had an impact on Skuld’s loss estimates although the effect has been limited compared with other insurers in the market.

“It is important for Skuld to embrace such challenges as an opportunity to show what our club is all about: first-class service and competence which our members can rely on. Our highly experienced claims teams provide high-quality service when it is crucial for our members.”

The major claims were partly offset by the positive contribution from Skuld’s commercial operations. At the end of the third quarter the technical result amounted to -$13 million with an overall combined ratio of 104 percent.

Net profit in the first nine months of the 2017/18 reporting year (as at 20 November) was $27 million, up 68.7 percent compared to the same period a year ago.

Hansen added: “Skuld’s diversification strategy continues to reduce our volatility and has contributed positively to the bottom line for the past 10 years. The commercial activities delivered a combined ratio of 92 percent. Skuld’s strong financial performance enables us to show our commitment to our mutual members by giving something back. The mutual members’ credit was approved at the Annual General Meeting and the credit of 2,5 percent was given back to all mutual members on the November payment instalment.”

Net investment income ended at $40.2 million with an investment return of 5.6 percent, mainly driven by strong equity markets and lower interest rates.

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