2017/18 financial year results
- Owned tonnage increased by 4.8%
- Premiums reduced by -1.3%
- Gross and net paid claims reduced by -14.1% and -7.6% respectively
- Total net incurred claims increased by 15.7%
- Underwriting loss of USD 24.5 million (though the club rebated 5%,equivalent to USD 10.6m premium during the 2017/18 financial year). Within this overall figure the Standard Syndicate contributed negatively with an underwriting deficit of USD 20.8m.
- 6.4% investment return
- Overall surplus of USD 31 million
- Assets and Free Reserves increased by 5.6% and 7.2% respectively
Combined Ratio
The underlying results of the Standard Club are complicated by recent returns of premium and the
underwriting losses from the Syndicate.
Comparisons of the results including and excluding the
Syndicate and premium rebate are as follows:
| Combined Ratio Comparisons |
2016/17 Percent (%) |
2017/18 Percent (%) |
| Full consolidation (including Syndicate and premium rebate): |
93 |
110 |
| Including Syndicate but excluding return of premium: |
90 |
105 |
| Including return of premium but excluding syndicate: |
87 |
102 |
| Excluding return of premium and excluding syndicate: |
83 |
97 |
| Underwriting Results |
USD (millions) |
USD (millions) |
| Underwriting result full consolidation: |
17.3 |
-24.5 |
| Including Syndicate but excluding return of premium: |
28.1 |
-13.9 |
| Including return of premium but excluding syndicate: |
31.6 |
-3.7 |
| Excluding return of premium and excluding syndicate: |
42.4 |
6.9 |
Consolidated Financial Year Summary (USD 000s)
|
2015/16 |
2016/17 |
2017/18 |
| Income and Expenditure |
|
|
|
| Calls and Premiums |
354,300 |
338,800 |
334,300 |
| Reinsurance Premiums |
-90,100 |
-77,000 |
-80,800 |
| Operating Expenses |
-39,600 |
-43,500 |
-45,700 |
| Operating Income |
224,600 |
218,300 |
207,800 |
| Gross Paid Claims |
339,600 |
300,400 |
258,000 |
| Net Paid Claims |
200,300 |
229,100 |
211,700 |
| Net Change in Provision for Claims |
6,600 |
-28,300 |
20,600 |
| Net Incurred Claims |
206,900 |
200,800 |
232,300 |
| Technical Surplus (Deficit) |
17,700 |
17,500 |
-24,500 |
| Investment Income |
-7,800 |
22,800 |
55,500 |
| Overall Surplus for Year (Deficit) |
9,900 |
40,300 |
31,000 |
| |
|
|
|
| Balance sheet |
|
|
|
| Net Assets |
972,800 |
984,700 |
1,039,500 |
| Net Outstanding Claims |
582,700 |
554,200 |
578,000 |
| Free Reserves |
390,100 |
430,500 |
461,500 |
| Entered tonnage (GT, millions) |
2016 |
2017 |
2018 |
| Owned / Mutual |
116 |
126 |
132 |
| Chartered / Fixed |
22 |
24 |
27 |
| Total |
138 |
150 |
159 |
| |
|
|
|
| S&P Rating History |
2016 |
2017 |
2018 |
| |
A |
A |
A |
| |
|
|
|
| Average Expense Ratio (AER) |
2016 |
2017 |
2018 |
| Five years ending 20 February |
12.2 |
12.4 |
12.5 |
Lloyd’s Syndicate and Club Diversification
The Standard Syndicate was launched at Lloyd’s on 1 April 2015. The Standard Club provides 40% of the capital in the Syndicate.The Standard Syndicate’s results are included in the consolidated results summarised above. A simplified breakdown of the Syndicate’s financial year results so far are below:
|
2015/16 |
2016/17 |
2017/18 |
| Premiums |
6,400 |
30,400 |
47,100 |
| Reinsurance |
-1,500 |
-5,400 |
-10,100 |
| Operating Expenses |
-6,900 |
-16,400 |
-20,900 |
| Operating Income |
-2,000 |
8,600 |
16,100 |
| |
|
|
|
| Net Incurred Claims |
4,000 |
22,900 |
36,900 |
| Technical Deficit |
-6,000 |
-14,300 |
-20,800 |
| |
|
|
|
| Investment Income |
1,500 |
3,000 |
1,200 |
| Deficit for year |
-4,500 |
-11,300 |
-19,600 |
