Circular to all Members
At the Annual General Meeting of Assuranceforeningen Skuld (Gjensidig) (“the Association”) held in Oslo, Norway on 29 August 2013, members and clients received reports on matters of importance to the Association's business and were happy to note that during the financial year of 2012, the club's entered mutual tonnage passed 75 million GT and that the Association continued to present a positive technical result for the tenth consecutive year.
2012 Financial Year
The Board of Directors' report and accounts for the Association were approved by the Annual General Meeting.
Skuld ended 2012 with a positive result of USD 18 million. Record high pool claims costs reduced underwriting surplus compared to previous years. However, the clear focus on controlled underwriting during growth delivered positive technical results for an entire decade.
With the positive contributions from investments, contingency reserves have been lifted to USD 308 million. The Skuld Group now has a record strong capitalisation, achieved through disciplined and strategic growth. The upgrade to A rating, stable outlook – affirmed in July 2013 - by Standard and Poor’s was an important validation of the Association’s strategy.
Premium income growth is mainly driven by commercial operations, particularly the growth in our Lloyd’s Syndicate 1897. Skuld’s 58.3% ownership in the Lloyd’s syndicate is consolidated into the Skuld Group figures. The churn-effect on the mutual owners’ book of business, a challenge for the whole P&I industry, slows down premium growth.
The significant rise in costs of pool claims reported by other P&I clubs has led to a deficit on the mutual P&I book of business. Skuld had no pool claims in 2012, but still has to reserve and pay its share of the pooling system within the International Group of P&I clubs. The balanced underwriting result is mainly derived from profits on the non-mutual book of business such as P&I cover for charterers and offshore. The Lloyd’s 1897 syndicate shows a deficit mainly due to costs arising from its first year of underwriting. The syndicate is growing and is expected to deliver positive results back to the Skuld Group in the coming years.
Net investment income contributed positively with USD 18.7 million. Skuld continues to have a moderate risk profile on its investment portfolio which is reflected in the 3.0% investment return for 2012. The majority of invested assets are allocated to low risk bonds with modest returns in the current financial environment. A conservative risk profile has been a strategic choice for Skuld in order to reduce volatility and secure sufficient capital for further growth of the Skuld group.
Skuld relies on its Enterprise Risk Management in order to control risk appetite, growth and capitalisation. In recent years, this focus has been put into the context of the new EU regulation of insurance entities Solvency II. Skuld has continued its preparations for Solvency II although the start date has been moved forward and will be implemented in 2015 at the earliest.
Douglas Jacobsohn, President and Chief Executive Officer said:”P&I will continue to be the backbone of Skuld’s business, but non-mutual products are imperative for our future growth and stability. Our premium income growth is driven by the success of our commercial operations, especially Skuld 1897, but despite ambitious growth targets we remain dedicated to profitability – financial stability is the foundation of our business, and the best security we can offer our members and clients.”
Review of Policy Years
2010/11 Policy Year
The AGM decided to close the 2010/2011 policy year without supplementary calls.
2011/12 Policy Year
The year will be kept open until 2014
2012/13 Policy Year
The year will be kept open until 2015
Statutes amendments
Statutes
The Meeting adopted amendments to the Statutes in accordance with recommendations of the Skuld Committee. The amendments clarify the composition of the Board and Committee and address a number of minor matters. The amendments are subject to the approval of the Norwegian Financial Supervisory Authority and will be circulated to all members at the same time as notification is given of changes to the Skuld Rules for the coming policy year.
Elections
Elected members of the Members’ Committee of Assuranceforeningen Skuld (Gjensidig)
The members of the Members’ Committee are elected at the Annual General Meeting in accordance with statute 1.3.4.
a) The following were re-elected for a two-year period until the Annual General Meeting 2015:
Ulrich Niebusch, German Tanker Shipping GmbH & Co, KG
Terje Michelsen, Grieg Shipping Group AS
Capt. Peter Raes, Sea-Tankers, Merignac, France
Sedat Gümüşoğlu, U.N Ro-Ro Isletmeleri A.S, Istanbul, Turkey
Jens Ismar, Western Bulk AS. Oslo, Norway
Eivind Holte, Saga Shipholding (Norway) AS, Nøtterøy, Norway
Shajie Huang, Associated Maritime Company (Hong Kong) Limited, Hong Kong
Yngvar Larsen, Thor Dahl Management AS, Sandefjord, Norway
Jacob Meldgaard, Torm A/S, Hellerup, Denmark
Fabio Montanari, Navigazione Montanari SPA, Fano, Italy
Geraldine Otto, Seahold S.a.r.l., Luxembourg
Tan Chin Hee, Pacific Carriers Ltd, Singapore
Katy Therapiotis, Ionia Management S.A, Piraeus, Greece
Anne-Marie Åström, Rederi AB Gotland, Visby, Sweden
b) The following were elected as new members for a one year period until the Annual General Meeting in 2014:
Martin Larsen, CFO of Maersk Supply
Michael Ippich, Managing Director of Hartmann Schiffahrts GmbH & Co
Phil Rundle, Commercial Director of Versabar
Odd-Christian Krohn, Managing Director at Fred. Olsen Insurance Services
c) The President, Ulrich Niebusch was re-elected as President of the Committee for a one-year period until the Annual General Meeting 2014.
d) Terje Michelsen was elected as Vice President of the Committee for a one- year period until the Annual General Meeting 2014.
e) The following shall retire from the Members’ Committee:
Lou Kollakis
Chartworld Shipping Corp. Athens, Greece
(Roberto Giorgi is elected Board Member as of 7 June 2013)
f) The following are not due for re-election until 2014:
Leon S Patitsas
Atlas Maritime Ltd, Piraeus, Greece
Harald Andresen, Fred. Olsen & Co., Oslo, Norway
Toril Eidesvik, Green Reefers ASA, Bergen, Norway
Gökhan Kiran, Kiran Holding A.S., Istanbul, Turkey
Jan van der Laan, Feederlines BV, Groningen, The Netherlands
Stefanos D. Michalis, Diamantis Pateras Maritime Ltd, Piraeus, Greece
Felix H. Tschudi, Tschudi Shipping Company AS, Lysaker, Norway
Nils Aardal, Jo Tankers AS, Bergen, Norway
Elected members of the Board of Directors of Skuld Mutual Protection & Indemnity Association (Bermuda) Limited
a) Re-elected for a two year period until the Annual General Meeting in 2015:
Ulf G. Ryder
Trygve Seglem
Sergey Popravko
Bernt O. Bodal
John P. Tavlarios
b) Elected as members for a one year period until the Annual General Meeting in 2014
Peter Wilsund
Roberto Giorgi
a) Re-elected as Chairman for a one year period until the Annual General Meeting in 2014:
Klaus Kjærulff
b) The following shall retire from the board:
Frank Jensen
c) After the elections, the Board of Directors of Skuld Mutual Protection and Indemnity Association (Bermuda) Limited comprises:
Klaus Kjærulff, Chairman
Ulrich Niebusch, Vice Chairman
Sergey Popravko
Ulf G. Ryder
Trygve Seglem
John P. Tavlarios
Peter Wilsund
Bernt O. Bodal
Manfredi Lefebvre D’Ovidio
Roberto Giorgi
Alan Bossin (Partner in law firm Appleby, Bermuda)
Joelina Redden (Counsel in law firm Appleby, Bermuda)
Elected Members to the Control Committee of Assuranceforeningen Skuld (Gjensidig)
The members of the Control Committee are elected at the Annual General Meeting in accordance with statute 1.3.6.
a) Re-elected for a two-year period until the Annual General Meeting in 2015:
Karl-Erik Nitter Foss
Nils Aardal
b) Elected as a deputy member for a two-year period until the Annual General Meeting in 2015:
Eivind Holte
c) The following shall retire from the Control Committee:
Dirk Lassen
d) After the elections, the Control Committee comprises:
Karl-Erik Nitter Foss
Harald Andresen
Nils Aardal
Eivind Holte, deputy member
Elected Members of the Election Committee of Assuranceforeningen Skuld (Gjensidig)
The members of the Election Committee are elected at the Annual General Meeting in accordance with statute 1.3.5. The Election Committee consists of four members, with the President of the Committee as one of its members.
The following members are elected for a one year period until the Annual General Meeting in 2014:
Felix H. Tschudi
Nils Aardal
Tan Chin Hee
After the elections, the Election Committee comprises:
Ulrich Niebusch
Felix H. Tschudi
Nils Aardal
Tan Chin Hee
Elected members of the Board of Directors of Assuranceforeningen Skuld (Gjensidig)
The Association's Board members are elected at the Members' Committee Meeting in accordance with statute 1.5.2.
Re-elected for a two-year period until the Members' Committee Meeting in 2015:
Bernt O. Bodal
Sergey Popravko
Ulf G. Ryder
John P. Tavlarios
Elected for a one-year period until the Members' Committee Meeting in 2014:
Roberto Giorgi
Re-elected Chairman for a one-year period until the Members' Committee Meeting in 2014:
Klaus Kjærulff
The Election Committee recommended no Vice Chairman be elected for this period.
Frank Jensen has decided to step down from the Board.
After the elections, the Board of Directors of Assuranceforeningen Skuld (Gjensidig) consists of the following members:
Klaus Kjærulff Chairman
Peter Wilsund
Trygve Seglem
Manfredi Lefebvre D’Ovidio
John P Tavlarios
Bernt O. Bodal
Sergey Popravko
Ulf G. Ryder
Roberto Giorgi
Simone Trondal (employee representative)
Claus Spinding (employee representative)
Yours faithfully
Assuranceforeningen Skuld (Gjensidig)
Douglas Jacobsohn
President and Group CEO