Marine insurance provider, Skuld, has reported a positive bottom-line result of $18 million for the first six months of its 2022/23 financial year, compared with negative $24.9 million from the same period last year.
The company noted that the outcome was mainly driven by a positive technical result, along with a significant investment contribution from the completion of the sale of Asta.
At the same time, the half-year technical result amounted to positive $12.1 million, with an overall combined ratio of 95%.
Gross premium and calls increased with $27 million to $228.1 million compared to the same period last year, with growth both from mutual and commercial lines of business.
Skuld’s positive six-month technical result was driven by positive contribution from the company’s commercial lines of business, while the mutual book of business delivered a combined ratio above target.
However, net investment income for the period contributed negatively with an investment return of -2%.
The ongoing Russia-Ukraine conflict, as well as energy shortages in Europe and high inflation created volatility, shifted yield curves substantially upwards and reduced the value of most asset classes. Additionally, the strengthening of the US dollar also impacted the investment portfolio negatively.
“We are pleased with this six-month result, which sees an impressive reversal from the same period last year. We continue to see the benefits from the high quality of our entered tonnage, while our risk mitigation and loss-prevention initiatives continue to help to limit lower level, attritional claims. Moreover, our firm diversification strategy remains a successful priority,” said Ståle Hansen, Skuld president and CEO.
He continued: “But we must be realistic; the insurance and investment environments are still extremely challenging, and with that in mind the threats imposed by the war in Ukraine and its political ramifications, high energy costs, and inflation keep us ever mindful of the need for sensible pricing, selective underwriting and very close working relationships with all of our members and clients.
“In so doing, we maintain our leadership position through financial strength and commitment to the highest quality service and will continue to provide members, clients, and brokers with our world class coverage and services, so that they can all rest assured with Skuld.”