Circular to all members
Skuld's Board of Directors met in Hamilton, Bermuda, on 5 November 2024 to discuss the upcoming P&I renewal for the policy year starting 20 February 2025.
The Board noted and agreed the following:
The mutual portfolio so far in 2024 reflects a general increase in higher-value claims in the industry compared with the prior year. At the same time, the investment portfolio has contributed positively year to date.
Skuld's growth strategy continues to deliver positive results and is enhancing its overall performance. Premium income is expected to exceed USD 565 million at year end. However, some volatility between now and year end is expected, and Skuld observes that inflation on a global level is affecting attritional claims and that operational costs are increasing to cater for the increasing complexity of the global insurance environment. It also noted a relatively increased severity of larger claims in excess of USD 1 million. The Board agreed that Skuld's established focus on an overall positive combined ratio should be maintained for the years ahead.
The Board continues to support the strategy of individual rate adjustments based on performance without a general increase and has set a target of an overall adjustment of 5% of the estimated total call (ETC) to balance future expected claims costs. Members will be given a 5% Members' credit on their mutual P&I premium subject to renewing with Skuld for the coming policy year.
Any adjustments to the International Group of P&I Clubs (IG) excess of loss reinsurance programme will be added separately.
RELEASE CALL 2025/26
The applicable release calls are presented below:
2022/23 = 7.5%
2023/24 = 10%
2024/25 = 15%
2025/26 = 15%
Please see the FAQ for more details on the mutual members credit.
Yours faithfully,
Assuranceforeningen Skuld (Gjensidig)
Ståle Hansen
President and CEO