The West of England P&I Club is reporting that its combined ratio has fallen from 140% to 114%.
The firm said that the improvement in its combined ratio came against a challenging backdrop for the industry. Without covid claims, the firm said that the combined ratio would have been below 101%.
Tom Bowsher, group CEO at West, commented, “West was one of the first to publicly say that there was an underrating in the market and our Board’s clear renewal strategy to address this and to selectively de-risk the Club has delivered a stronger and leaner Club ready to support our members.”
West said it has embarked on planned renewal strategy in consultation with its Board, which saw the Club not only general increase premiums but also undertake a deliberate de-risking of tonnage which did not contribute positively to the Club’s financial performance. Through those actions the Club is now in a strong position and well placed to continue to support its members through these difficult times.
Simon Parrott, underwriting director at West, commented, “Claims volatility and record Pool levels have continued in earnest over the past 12 months, with Covid-related issues continuing to impact our Members. Despite these negative pressures, our combined ratio of 114% represents a significant step in the right direction.”