1. The Shipowners’ Club
Annual Report
2014
Five Year Combined Summary
Income and Expenditure (in USD millions)
2009/10 2010/11 2011/12 2012/13 2013/14
Earned premiums, net of reinsurance 150.0 173.8 189.7 200.1 213.1
Incurred claims (117.8) (107.1) (118.2) (146.8) (158.5)
Operating expenses (34.4) (40.5) (43.0) (44.3) (52.3)
Underwriting result (2.2) 26.2 28.5 9.0 2.3
Investment result less taxation 41.7 26.7 18.0 31.9 20.9
Increase in free reserves 39.5 52.9 46.5 40.9 23.2
Combined ratio 101.5% 84.9% 85.0% 95.5% 98.9%
Balance Sheet (in USD millions)
2009/10 2010/11 2011/12 2012/13 2013/14
Investments at market value and cash 377.8 448.3 520.0 587.5 642.7
Other assets 30.4 29.8 33.5 38.0 42.3
Creditors (19.9) (23.3) (21.5) (24.9) (30.9)
Net assets 388.3 454.8 532.0 600.6 654.1
Net technical provisions (252.9) (266.6) (297.2) (324.9) (355.2)
Capital and free reserves 135.4 188.2 234.8 275.7 298.9
Registered Office
The Shipowners’ Mutual Protection
and Indemnity Association (Luxembourg)
16, Rue Notre-Dame
L-2240 Luxembourg
Tel: +352 229 7101
Fax: +352 229 710222
Email: info@shipowners.lu
www.shipowners.lu
Managers
The Shipowners’ Protection Limited
St Clare House
30-33 Minories
London EC3N 1BP
Tel: +44 (0)20 7488 0911
Fax: +44 (0)20 7480 5806
Email: info@shipowners.co.uk
www.shipownersclub.com
Auditors
MOORE STEPHENS Audit S.A.R.L.
Horst Schneider
Réviseur d’enterprises agréé
2-4, rue du Château d’Eau
L-3364 Leudelange
Luxembourg
www.moorestephens.com
0
20
40
60
80
100
120
85.084.9
95.5
101.5
%
USDm
98.9
98.9
Combined
ratio
2013/14 234.8
298.9
Capital and
Free Reserves
2013/14
0
50
100
150
200
250
300
135.4
188.2
2009/10 2010/11 2011/12
FinancialYear FinancialYear
2012/13 2013/14 2009/10 2010/11 2011/12 2012/13 2013/14
298.9
275.7
In July of this year I will conclude six years as Chairman of the
Club. I would like to thank the Board and management for their
diligent support throughout this period which saw dramatic
changes in the global economy and insurance industry.
Chairman’s Report
I assumed the chairmanship in 2008, the year of the so-called ‘economic crisis’, which caused
so much tumult in the financial and business world. At that time, I expressed the opinion
that the Shipowners’ Club was well positioned to weather what some described as the
‘perfect storm’ raging in the world economy. By continuing to do what the Club has always
done – operate on the principles that it should have a balanced underwriting result, and
that investment income should be used to bolster reserves, not subsidise rates – the Club
successfully navigated these troublesome and difficult waters, emerging stronger than ever.
Now that normality has returned, and perspective can be given to the events of 2008,
it is appropriate to take stock of what has transpired at the Club since these uncertain
times. Over the past six years:
- Free reserves have increased from USD 123.7m to USD 298.9m - an increase of 142%
(I might add this was achieved without unbudgeted calls).
- The investment portfolio has increased by 53.2% from USD 371.520m to USD 569.286m.
- The average combined ratio over the past six years has been 90.6%.
- The membership has increased by 26% with an increase in vessels of 18.6%.
- The annual earned premium (net of reinsurance) increased by 71.6% from
USD 124.2m to USD 213.1m.
Consistency of purpose with prudent underwriting over the long haul, in good times
and bad, enabled the Shipowners’ Club to weather the perfect storm of 2008 and go from
strength to strength as free reserves were dramatically increased and the investment
portfolio substantially enhanced.
4 The Shipowners’ Club - Annual Report 2014
Combined Ratio
Percentage
FinancialYear
98.6 94.2 127.0 123.9 77.7 101.5 85.0 84.9 95.5 98.9 93.2 98.7
2005
2006
2007
2010
2008
2009
0
25
50
75
125
100
150
2011
2012
2013
2014
5–yrAvg.
10–yrAvg.
20th February 2014
Shipowners 2014
Annual Report