Skuld, today announces a positive bottom-line result of USD 25 million for its 2020/21 financial year ending 20 February 2021 (equal to the 2019/20 result), and a total combined ratio of 108%.

The result has been delivered with the benefit of a significant return on investments (9.8%), as well as a strong level of performance from all commercial marine insurance products, including hull. The underlying performance of the mutual portfolio remains a challenge which will continue to be addressed by the industry.

The biggest material impact in relation to the result was the performance of the pool, not only for claims occurring in 2020 but also prior year deteriorations. No pool claims were reported by Skuld during 2020. The Covid-19 pandemic has also contributed negatively to Skuld’s claims performance with significant increases in claims activity being noted for people claims, as well as an increased level of FDD claims activity.

Skuld’s contingency reserves stand at USD 459 million.

Ståle Hansen, Skuld president and CEO, said: “At the end of an unprecedented and challenging year, I am very pleased with the positive result, and that we have kept the high levels of service for which Skuld is renowned. Skuld remains in a very robust financial position as reflected by our contingency reserves. The 2020/21 P&I renewal, handled almost entirely digitally, saw Skuld cross the mutual gross tonnage mark of 100 million. Also, we increased our market share across all other lines of business, demonstrating again the success of Skuld’s diversification strategy.

“Mutual premium levels are still unsustainable, and do not currently yield a positive technical result. We will continue our strategic avoidance of imposing a general increase, but will retain our individual approach and seek selective, performance-based increases to bring our mutual business back into balance during 2021/22.

“Our long-term investment strategy remains conservative, which is proven to handle extreme volatility. Skuld remains well above all regulatory solvency requirements and is aligned with its own stricter internal solvency targets as set by the Board.

“I have to express my appreciation to everyone who has contributed positively during the Covid-19 pandemic. Our focus has continued to remain on keeping our service levels high. I am proud of the efforts and spirit that our members, clients and staff have maintained during this unique year. Skuld has a very strong platform for further growth, and we look forward to approaching our 125th anniversary in 2022 as a modern and future-oriented world leading marine insurance provider.”