Financial Highlights

Combined ratio
At 20 February 2024

94.5%

Financial Strength
At 20 February 2024

Solvency ratio

195%

Total assets

1,082

USD million

Class 1 entered
tonnage excess

million GT

145

USD million
Free reserve
At 20 February 2024

276.3

USD million
Gross premium
(financial year)

326

AM Best

rating

A-

Further strong progress with combined ratio of 94.5%

The Club’s financial results again showed strong progress against all our key performance indicators.

Following on from last year’s positive results, the Club has achieved a second consecutive year of an underwriting surplus.

The performance of our own Members’ claims contributed to this surplus. The 2023 Policy Year Members’ claims cost is on average USD 20m lower than PYs 2020 – 2022 at the same stage of development and the performance of each of our core products - Mutual, Charterers and Fixed Owners – was materially better than last year.

In addition to the improvements seen with our own Members’ claims, the cost of claims notified from other Clubs was comparatively benign in Policy Year 2023 for the second consecutive year. The Club’s Pool share for Policy Year 2023 also remains comparatively

low at just 6.56% and this, as well as the lower than expected cost of claims, contributed positively to our technical result.

These factors led to an underwriting surplus of
USD 15m and a combined ratio of 94.5%, a third year in a row of improvement and the Club’s best combined ratio since 2017.

After a challenging couple of years, the Club’s investment portfolio delivered a positive net return of 4.0% generating USD 30.8m. All the main asset classes contributed to this strong return, with both the bond and equity portfolios benefiting from the expectation that central banks would soon be lowering interest rates.

The positive investment return, added to the underwriting surplus, meant that all capital measures materially improved.

The Free Reserve increased by 20% to USD 276m and consequently, capital as measured under the rating agency models significantly improved re-affirming AM Best’s decision to award the Club with an A- rating in the Autumn of 2023.

The Club’s Solvency Capital increased from 176% to 195%, the highest it has been since February 2020, and now comfortably exceeds our Board’s base target level of 175%.