Gard reports strong 2007 results
Following a meeting of the Board of Directors in Dublin on Monday 26th of May, Gard has released highlights from its consolidated results for the year ending 20th February 2008.
Reporting at a group level the key financial results are:
- Gross written premiums were USD 721 million, an increase of 11%.
- A surplus of USD 69 million.
- Total assets of USD 1.93 billion, with free reserves of USD 581 million, an increase of 13.5%.
- A group combined net ratio (CNR) of 109%, an improvement from 111% in 2006.
“2007 was another very good year for Gard.” said Stephen Pan, Chairman of the Board. “Since the creation of the group four years ago there has been an unbroken trend of reporting healthy surpluses and a stronger balance sheet. This is despite the fact that over that period the market has faced challenges from increased claims, exceptional events such as hurricanes and, most recently, very volatile investment markets.”
Claes Isacson, CEO, commented “Our core purpose is to help our Members and clients in the marine industries to manage risk and its consequences. Five years ago we took a strategic decision to create a different business model, and since then we have worked hard to ensure we are getting every part of the business right – structurally, financially and operationally. A key to this is having first class people across a whole range of skill sets from oil pollution to reinsurance, all working hard and doing the right things.”
“Our investment return in 2007 was 8.8%, contributing to a USD 124 million non-technical result. In a difficult year this is a real tribute to the processes we have put in place to manage our investments. Our Enterprise Risk Management (ERM) programme was assessed by Standard & Poor’s last year and evaluated as “strong”, putting us in the top 15% of European insurers. This deep understanding of our risk profile allows us to realise significant synergies in reinsurance purchasing and capital management.
“Finally, we have invested considerable effort to ensure we have the right people in the right place. We have strengthened our overseas offices and all business areas to ensure we are offering the best service possible. The result is a strong growth in premium income written: every business area was ahead of target and at the last P&I renewal we saw a strong inflow of tonnage.”
The full report and accounts will be available later in the year.
Notes to Editors
The Gard Group is a shipowner controlled, diversified provider of P&I, marine and energy insurance products, with an annual group level written premium income of USD 721 million and total Group assets of USD 1.93 billion. Gard now employs over 370 people in ten offices around the world.
The P&I division has an entered tonnage in excess of 170 million gt, and gross written premium in the 2007 policy year of USD 406 million.
The marine division has over 6,400 entered vessels and a gross written premium income of USD 223 million in 2007.
The energy division’s gross written premium for 2007 totalled USD 92 million.
All insurance operating entities within the Gard group; Assuranceforeningen Gard, Gard P&I (Bermuda) Limited and Gard Marine & Energy Limited are rated ‘A+’ (stable outlook) by Standard & Poor’s.
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