Following their meeting on 25 October, the Steamship Mutual has decided to return capital to the Club’s Members.

The return will be 10% of premium paid on Class 1 (P&I) owned mutual entries in respect of the 2014/15 policy year. It was also decided that no General Increase was required at the 20 February 2017 renewal – this being the third successive year that the Club has adopted this stance. The Club will also not require an increase in its minimum deductible levels.

Alongside Standard & Poors lifting the Steamship’s security rating from A- to A, this welcome news for members is the manifestation of several healthy years for the club’s finances which have seen free reserves grow to US$440m and the rolling combined ratio for 3 years averaging 83%. On the underwriting side, the good news looks set to continue as on a year-to-date basis, the overall cost of claims for 2016/17 is the lowest for several years.

Club Chairman Armand Pohan said: “As a mutual, the interests of the Members are paramount. The Board is determined to maintain financial strength and stability whilst at the same time ensuring that the Members derive real benefits from their membership in and contribution to the Club.

Aside from the return of premium to the Membership, the Board agreed to greater risk retention within the Club thereby reducing the spend on external reinsurance the cost of which is inevitably passed on to Members; and a continuation of the policy of keeping rates steady.” The Manager’s Executive Chairman Gary Rynsard commented: “In making these decisions the Board showed its determination to use the financial strength of the Club for the benefit of the Members.”

The full circular can be found here.

Tagged with: , , , , , , , ,