The London P&I Club suffered a 13.4% drop ($39m )in its investment portfolio, despite the decision to switch a significant portion of its money from equities and into fixed income, according to its 2008/9 financial year report.
“Notwithstanding the change in asset allocation, the mark-to-market value of the club’s investment portfolio was negatively impacted, especially during the latter part of the year, by the effect of the unparalleled financial turmoil, principally on its remaining equity holdings,” said Ian Gooch, chief executive of the London P&I Club.
But the club said decisions made in October 2008, such as general increases in premium set for 2008/9 and the last renewal helped strengthen its financial resilience. It also achieved a financial year surplus of $34.6m and an increase in free reserves of 43% up to $115.5m.
The club’s full annual report will be published in July.