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Following the meeting of the Board of Directors on 14 May 2019, Gard today announced its results for the year ending 20 February 2019. Reporting at a group level, the key financial results are:

  • A loss after tax of USD 53 million on an Estimated Total Call (ETC) basis
  • Combined ratio net of 110 per cent on ETC basis
  • Gross written premium of USD 798 million on ETC basis
  • The non-technical result was a loss of USD 9 million, including a negative investment return of USD 3 million.
  • Equity reserves of USD 1,159 million – after the reduction in the deferred call

Mutual Members will get a 10 per cent reduction in the Estimated Total Call. This will be reflected as a reduction in the last instalment for the 2018 policy year and will amount to USD 37 million.

Rolf Thore Roppestad, CEO of Gard, said “Our industry is typified by volatility and cyclical behavior and, as such, it is not unexpected that there are years in which losses occur. The fact that this is our first loss in a decade is testament to our ability to deliver better than average results.

“2018 was a year of two halves. While at the six-month mark the group reported a profit, by the end of the year this had turned into a loss of USD 53 million and a combined ratio net of 110 per cent. This was a combination of a small underwriting loss from a few severe claims and the impairment of an IT project due to change of direction and vendor and a reduction in the expected benefits. A negative investment return also contributed to the loss.

“We aim to stay financially strong, keep premium levels fair, predictable and sustainable over the long term, and return surplus capital to our Members when the situation allows. This year, for the 10th year in a row we will be able to return funds to the mutual membership.”

 

ENDS

Notes to Editors

  1. Gard is a shipowner-controlled provider of P&I, marine and energy insurance products, with over 470 staff in 13 offices around the world.
  2. The direct insurance entities within the Gard group; Gard P. & I. (Bermuda) Ltd, Assuranceforeningen Gard -gjensidig, Gard Marine & Energy Limited and Gard Marine & Energy Insurance (Europe) AS are rated ‘A+' by Standard & Poor’s.

Contacts

Caroline Wagstaff, Luther Pendragon                                           
Email: carolinewagstaff@luther.co.uk