Steamship Mutual reports $64m operating surplus

by Gill Montia

Story link: Steamship Mutual reports $64m operating surplus

Steamship Mutual has announced that its underwriting performance continued to strengthen in the 2009/10 fiscal year.

The marine protection and indemnity club (P&I Club) produced an operating surplus of $63.9 million and increased its free reserves by an annual 34%, to $251.6 million.

The Club also achieved an overall increase in rates of 3.1%, together with a modest increase in tonnage, to 83 million GT.

The mutual’s chief executive officer, Gary Rynsard, comments: “In contrast to the investment losses experienced last year, Steamship Mutual’s combined investment portfolio recorded a gain of $45.1 million.”

He adds: “This capital injection, combined with the additional premium levied during the year, increased the total level of cash and investments held to $721.0 million.”

Looking to the year ahead, the insurer expects both premiums and claims to remain at 2009 levels.

P&I Clubs are associations of shipowners and charterers, owned and controlled by their members.

They operate on a non-profit making basis, that is to say members pool their resources in order to meet losses suffered by one another.

The basic principle is that the “mutual premium” paid by the membership in any one year should be sufficient to meet all the claims, reinsurance and administrative expenses of the Club.