Marine insurer Skuld, saw a financial result of $126 million for the year ended 20 February 2024, with a positive technical result of $60 million.

“Skuld delivered an historically strong result,” commented Ståle Hansen, Skuld president and chief executive officer.

He said the good outcome came despite a dramatic year with significant geopolitical challenges, and financial volatility impacting international shipping and trade.

The Norwegian-based firm with an office in Bermuda, also improved their technical result by $45 million, resulting in a net combined ratio of 86 per cent.

Driven by a strong renewal with increased rates and new vessels entering Skuld during the year, significant premium growth was seen in both mutual and commercial lines of business, contributing to gross earned premiums and calls at $527 million.

“This demonstrates our ability to deliver top-line growth and a solid bottom line, allowing us to balance both a return to members and to retain sufficient capital for volatility and our growth ambitions ahead,” Mr Hansen said.

The financial year was characterised by a benign claims environment within protection and indemnity, particularly the mutual line of business.

The physical damage line of business was affected negatively by increased competition and a heavier claims environment. Net claims incurred ended at $278 million, compared with $287 million in the previous period. The international group pool cost affected the total claims cost with $24 million, a reduction of $5 million from 2022/23. Skuld reported no new pool claims this year.

The gradual improvement of the technical result in the mutual book of business continued in 2023/24. Based on the strong contributions this year, a premium credit (members’ credit) of $10 million will be returned to Skuld’s mutual members for the policy year 2023.

High treasury yields and expectations towards more AI-driven technology caused strong positive contributions from fixed income and equities. Total investment income, including fair value changes through other comprehensive income, ended at $75.5 million for 2023/24 with an investment portfolio return of 7.2 per cent.

Total tax expenses, including tax on other comprehensive income, amounted to $9.3 million, mainly driven by the positive results in the Norwegian Association.

Mr Hansen said Skuld’s financial and solvency position is robust, and the contingency reserves now stand at $551 million, leaving Skuld well-capitalised and equipped for future growth.

He said Skuld remains well above all regulatory solvency requirements and is aligned with its own stricter internal solvency targets set by the board.