Annual Report
Total Page：16
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Annual Report 2010for the year ended 31 December Contents Financial statements 17 Board of Directors’ report 19 Five-year summary 22 Income statement 23 Balance sheet 24 Financial highlights 3 Change in equity 26 The year in brief 3 Cash fl ow statement 26 Chairman’s Overview 4 Performance analysis per class Managing Director’s Comments 5 of insurance 27 Risk Management 7 Notes 29 Review of operations 8 Proposed appropriation of earnings 48 Auditors’ report 49 Five-year summary: 15 insurance facts and call history Auditors 50 Bohus Fortress — a Northern struggle 16 P&I policy year statement 51 (unaudited) P&I income and expenditure 52 account (unaudited) Management Group 53 Board of Directors 54 Defi nitions & Glossary 56 This year the Bohus Fortress forms the theme of our Annual Report. On page 16 you can read more about its 700 year old history. THE SWEDISH CLUB ANNUAL REPORT 2010 USD thousands 31 Dec 2010 31 Dec 2009 31 Dec 2008 Average Calls and premiums 160 068 149 964 192 396 167 476 Reinsurance premiums -36 290 -45 753 -55 890 -45 978 Net claims incurred -85 520 -78 749 -80 218 -81 496 Financial result 13 526 9 104 -25 720 -1 030 2 Actual result 29 549 14 849 7 160 17 186 Loss ratio 69% 76% 59% 68% Expense ratio 18% 19% 17% 18% Combined ratio 87% 94% 76% 86% Financial highlights 0 1 Strong underwriting performances in all lines of business Free reserves again at a record level: USD 151.2 million Substantial growth in the P&I portfolio Stronger, more diversifi ed and robust Marine book The Club enters the Offshore market with an offi ce in Oslo A sparkling inaugural year for The Swedish Club Academy A year of celebrations: 100 years of P&I 30 years in Greece 10 years with Marine Insurance Cource (MIC) The year in brief in year The 0 Proactive . Reliable . Committed 3 THE SWEDISH CLUB ANNUAL REPORT 2010 Putting quality fi rst There were market the principal question for 2011 The Swedish Club’s Board took impor- Chairman’s mixed for- is: are we back in business or is the tant strategic decisions during the year. Overview tunes across recent upturn temporary in nature? These concerned, inter alia, diversifi - the shipping cation and the creation of a new and sectors in Uncertainties & optimism potentially substantial business line in 2010. We saw an encouraging bounce- Overall, there was a generally optimistic the Offshore sector. back in the container trades, with feel to the New Year. The uncertain- To conclude, The Swedish Club strong results from most major players. ties turn on the wild cards in the world achieved a strong underwriting re- Is this purely “catch-up”, or the begin- economy. What does the future hold for sult 2010. The feedback received from ning of a new advance? Many the Euro? What are the prospects for Eu- Members and the broking community, people want the answer to rope’s more exposed economies? No-one indicates that we have found the right that question! has a clear picture of the potential im- balance between price and quality. In In contrast, the tanker pact of further addition, we market had a tough year. major fi nancial We made excellent progress continue to Without doubt, that and economic on all fronts, especially P&I... benefi t from was the most challenging setbacks. The key the increasing sector during 2010. Yet, barometer re- In terms of solvency we have willingness of tanker operation is mains consumer never been stronger. large own- a fascinating busi- confi dence. On ers to spread ness and tends to this front, there is always hope of a swift cover over several clubs. We are always have a powerful improvement. Expectations are low in this a potential P&I provider, against criti- hold on serious area, but commentators can get it wrong. cal measures such as quality, value and participants. The This could happen…we shall see! In any service. larger vessels event, agile brains will fi nd opportunities typically yield in all manner of adverse situations. Quality always comes fi rst acceptable To sum up, there are grounds for On the outlook for future growth, our returns over cautious optimism but shipping is now a existing Members are our most effective time, yet we nervous business environment. Further- ambassadors. Much of the new business see remind- more, we have entered a more uncom- arises from personal introduction. In this ers of this fortable phase. As recovery takes hold, it way, we gain opportunities to explain sector’s becomes increasingly diffi cult to sit on how we bring added value to the provi- capacity to the fence. Fortunately, however, shipping sion of insurance. In widening our mem- hit extremely is not an industry short on self-belief. bership base, we will never deviate from low levels. Cer- our guiding principle of “Quality First”. tainly, the tanker Moving forward on a wide front We intend to attract new Members of business is not This was a memorable year for The quality and demonstrate that the Club for the timid! Swedish Club. We made excellent is worthy of their trust. The course will Cold Win- progress on all fronts, especially P&I. In be steady in 2011. We are encouraged ters are gener- terms of solvency we have never been by the growth achieved in 2010 but we ally good news stronger. At the same time, we need have no interest in volume for its own for tanker to keep in mind that 2010 was a year sake. Quality remains the watchword. owners and largely free of major claims and humility recent Winters is a virtue in the insurance business. have been The fi nancial results are very encour- Gothenburg, March 2011 extremely cold aging, as is the signifi cant increase in P&I in North West volume. Existing Members placed more Europe. In ships with us and new Members were this attracted by good performance, solvency, Lennart Simonsson stability and our reputation for providing Chairman a service concept second to none. The Swedish Club 4 Proactive . Reliable . Committed THE SWEDISH CLUB ANNUAL REPORT 2010 Holding a steady course The Swed- income of USD 11.8 million, producing totalled 60.3 million GT, (48.8 million GT Managing ish Club a total surplus of USD 29.5 million. Free 12 months earlier). Director’s enjoyed a reserves at January 1, 2011, stood at the The benign claims picture is linked to success- record level of USD 151.2 million (USD global recession, a reduction in ship- Comments ful 2010 121.7 million 12 months earlier). ping activity and, in particular, the wider with a adoption of slow steaming. In sharp very satisfying total outcome. By Strong growth in P&I volume contrast to P&I, there is a strong cor- most measures, this was one of the There was a signifi cant increase in ton- relation between Marine strongest results in our long history nage entered for P&I (Owners and Char- claims (especially large if not the strongest. A Net Combined terers) cover. This portfolio rose from navigational claims) Ratio of 87 per cent refl ects our fi rm 39.3 million GT at February 20, 2010, to and global economic underwriting discipline, high quality 46.6 million GT at December 1, 2010. At conditions. For this of members, a benign claims environ- February 20, 2011, the Club’s P&I book reason alone we expect ment and our new and more cost- totalled 47.0 million GT. the frequency of larger effi cient reinsurance arrangements. This expansion refl ects determined claims to increase as During the year we celebrated marketing and reinforced perceptions economic recovery 100 years as a of us as a fi rst takes hold. We re- P&I provider. class P&I provider. main committed Fittingly, our P&I Free reserves at January 1, Members placed to writing quality portfolio passed 2011, stood at the record more ships with us Marine business; the 30 million GT and we also wel- at the same time, milestone. In line level of USD 151.2 million comed a number we are mindful with our com- of new Members of the potential mitment to safety at sea, we marked who share our commitment to qual- for an adverse the anniversary by a donation to the ity and service. Growth is an expression change in Swedish Lifeboat Service. of confi dence in us, the quality of our claims fre- The Club’s vigorous progress in service and a promising future. quency. 2010 was carefully planned and man- There were fewer large P&I claims During aged. We believe that good results during 2010. Here, it should be acknowl- the year we spring from underwriting discipline edged that large P&I claims (unlike major made good and quality business. When the Hull claims) are essentially random in progress in quality is right, positive results will character. The year did see an increase in diversify- follow, together with an increase in the number of attritional claims, espe- ing the Marine business volume. The many highlights cially cases concerning injury and illness. portfolio even included strong growth in our P&I The Swedish Club, once again, further, writing portfolio, more diversifi cation within remained free of Pool claims during the more Increased the Marine portfolio and the decision year — our last was in 2007. This run of Value, Loss of Hire to make an entry into the sector of good fortune, together with a major and War business.