Skuld is pleased to report a positive half-year (six months ending 20 August 2024) result of USD 25 million. The positive result was driven by a strong contribution from the investment portfolio across all asset classes.
Highlights:
- Positive result of USD 25 million for the half year
- Continued premium growth
- Strong investment portfolio return
The investment return contributed 5.1% in the first half of the year. All the main drivers moved favourably over the period, with global equities increasing by 11.5% while US bond yields and the USD declined.
Skuld continues to see growth in premiums and calls both for mutual and commercial lines of business, resulting in gross earned premiums and calls of USD 277 million, an increase of USD 21 million compared with the same period last year.
Despite the premium growth the half-year technical result ended at a negative USD 30 million, equating to a combined ratio of 111%. Following a benign large-claims environment for the past few years, several large claims in Skuld's portfolio impacted the half-year technical result. Additionally, an increase in claims reported through the International Group (IGP&I) pooling system contributed to more than doubling pool costs year-on-year. In the reporting period, Skuld reported one new pool claim.
Ståle Hansen, Skuld president and CEO, said: "We are pleased to report a positive result in the first six months driven by a strong contribution from the investment portfolio. However, as the claims environment returns to more normal levels, the industry needs further rate adjustments to absorb higher claims costs.
"We remain dedicated to maintaining our strong financial position and delivering exceptional service to our members, clients, and brokers. We will continue to adapt and evolve to meet the challenges and opportunities ahead while remaining in our leadership position in marine insurance."