The Gard results have been negatively affected by several major incidents within the International Group Pool and spread of the COVID-19 pandemic and its impact on the shipping and financial markets.
6 November 2020
The results for the period ending 20 August include;
Rolf Thore Roppestad, CEO of Gard, said: “Our half year results have been significantly impacted by an increased severity in major claims; both those for our own account and Pool claims from the International Group Clubs which have risen sharply. We aim to run the mutual business at a small loss, balanced with the returns earned on our commercial insurance book which have been positive and better than expected for the first half year of 2020.
“Despite the negative results, Gard is well capitalised and within our target range. Our goal is to balance the group’s ability to help individual Members and clients with the maintenance of the long-term financial health of the group. We supported our Members’ cash flow by delaying the decision on the final premium instalment for 2019 policy year until now, and the Board has now decided that mutual Members will get a 5 per cent reduction in the Estimated Total Call. This means we will only collect 75 per cent of the last instalment for the 2019 policy year, a total saving of $18 million for the Members.
“The high level of casualties seen over the past year reminds us of the inherent unpredictability in the marine insurance industry. Reductions in the average pricing of owners mutual P&I over recent years have been justified by a benign claims development, but this has deteriorated over the last year with the market seeing greater severity in claims.
“As a result, Members can expect a moderate increase in the Estimated Total Call for owners’ mutual P&I for the 2021 renewal. The Board has however decided that, instead of a General Increase, individual members rates will be adjusted to reflect their risk profile and claims record. Overall, we will seek to price Owners’ Mutual P&I to target a CRN of 102.5%.”
Notes to Editors
Mobile +44 7767 794208