In their 2022-23 financial year results, West P&I Club has reported an underwriting profit of $8 million.
At the same time, the firm also recorded $293.2 million in gross earned premiums.
West also achieved a 96.7% combined ratio for the financial year, despite challenging global economic circumstances, which represents the strongest result for the company since 2017.
The turnaround in performance was due to lower International Group of P&I Clubs pool claims, as well as a decline in Covid-related claims.
However, in a year surrounded by inflationary pressures and interest rate rises, this did ultimately contribute to West’s losses for fixed income investments and also affected its equity holdings.
The Club’s alternative asset portfolios generated a positive income, however, resulting in its overall investment portfolio producing a -3.6% return.
“West began 2022 in a much stronger position than recent years following a successful renewal, which saw the Club’s rating levels increase and its risk profile improve,” said Tom Bowsher, Group CEO of West P&I.
Bowsher also stated that the decline in Covid-related claims bolstered Members’ own claims performance in 2022, despite inflationary pressures throughout the year. Members’ back-year claims developed more favourably than expected.
Elsewhere, the IG was notified of just five claims, none of which came from West. “This has a positive impact on our Pool share and the incurred cost of Pool claims to West was much lower than in recent years,” Bowsher added.
