Specialist insurer’s gross written premium climbs 8.5%
Freight transport and logistics insurer the TT Club managed to keep its combined ratio below 100% despite taking a significant hit from last year’s major global natural catastrophes.
The TT Club posted a combined ratio of 98.6% (2010: 83.3%) during 2011 as it made a net surplus of $1.2m (2010: $12.8m) for the year.
The Club experienced a high level of prior year releases in 2010.
The Club has paid out most of the 16 claims from its members totalling $5m arising from the Japanese earthquake and tsunami and faces claims worth $12m, including $9m from a government pharmaceutical company, for the Thai floods in October.
The specialist liability insurer boosted its gross written premium by 8.5% to $181.7m (2010: $167.4m) due to an increased uptake in the company’s cargo insurance product.
Investment return held steady at 0.8% (2010: 0.9%), with 93% of funds in cash and fixed income, as did surpluses and reserves at a record high of $145.4m (2010: $144.2m) and capital resources of $174.5m (2010: $173.2m).
But members of the transport insurance Club were impacted by a number of the key catastrophe events of 2011, including the second Christchurch earthquake, flooding in Queensland (Australia) and Thailand and the Japanese tsunami.
Chairman of the board Knud Pontoppidan said: “The premium rating environment has been unrelenting and the Club continues to encounter fierce competition.
“This competition has been very much on price rather than on product as very few, if any, of the Club’s competitors seek or are able to replicate the Club’s value added product and service offering. “There were signs, however, in the latter part of the year that the rating environment was improving and at the renewals on 1 January 2012 the Club achieved increases on most renewing accounts.”
Member renewals rates of 96% were in line with or slightly above historical levels and the Club achieved improved premiums on the majority.
The Club’s total assets are $608.8m, and total capital resources (including subordinated debt) are $174.5m.
Chief executive Charles Fenton said: “We are justly proud of the contribution the Club makes to safety, security and operational best-practice.
“Current work includes; practical guidance in framing regulations for weighing containers; advice on packing cargo units, including properly handling hazardous materials and satisfactory training of operatives and the Cargo Incident Notification System (CINS), which aids the sharing of data on potentially dangerous container stowage practices.
“All such efforts additionally help to minimise claims.”
Pontoppidan said: “I anticipate further progress in 2012 especially in the Club’s strategic objective to improve the balance of the underwriting book with growth in the logistics and transport operators sector.”
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