Global marine insurer Skuld has announced a profit of US$13.4 million (£11.01 million) for the first nine months of the 2022-23 financial year (ending Feb. 20), citing a benign claims climate.
The firm’s positive result was an improvement of US$33.9 million, after making a loss during the same period last year. It also carries the velocity from its half-year results, ending this reporting period at US$21.6 million with an overall combined ratio of 94%, driven by the contributions from its retail book of business.
Gross premium and calls for the nine months were at US$350.5 million, an increase of US$ 41.5 million from the same period last year, and with growth both from mutual and commercial lines of business.
Skuld said that the good results are from a more benign large claims environment, compared to last year. During this period the technical result of mutual products improved gradually. However, the insurer said that the above-target combined ratio, expectations of continued inflation, and an uncertain claims environment demonstrate that further rate boosts for the mutual portfolio are needed.
The company’s net investment return was -1.5% for the quarter. This was due to volatile markets across various asset classes and developed markets’ central banks continuing to tighten their monetary policies to try and calm labor markets and dampen inflation. The negative investment result, foreign exchange fluctuations, and changes in tax liabilities had a positive effect on the nine-month financial result, Skuld said.
“Skuld is in a very robust financial state,” said its CEO Ståle Hansen (pictured above). “Notwithstanding a relatively benign claims environment, global inflation is likely to impact claims costs negatively as we move into 2023, and we need to remain mindful of accuracy in pricing and selective underwriting. Our efforts to ensure balance in the mutual portfolio will continue as we maintain our leadership position through financial strength and world-class scope and service, ensuring that our members, brokers, and clients can rest assured with Skuld.”