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It’s not all calm waters for marine insurer Gard, but thanks to disciplined risk selection and a benign claims environment it has reported mostly positive numbers for the six months to August 20.
On an estimated total call (ETC) basis, Gard saw a result after tax of US$27 million with a combined ratio net of 78%. Investment return, however, was negative US$41 million.
“This period has demonstrated a strong technical performance and a growth in gross written premium compared to the same period last year,” said Gard chief executive Rolf Thore Roppestad. “This is a result of disciplined risk selection and the continuation of the benign claims environment, both in terms of frequency and severity, that we have seen in recent years.
“With investment results volatile, ensuring that we have a balanced book of underwriting becomes increasingly important. Being excellent at the fundamentals, assessing and handling maritime risk, is our first priority to deliver on our members’ and clients’ needs.”
Roppestad cited the quality of Gard’s membership, the insurer’s continued focus on loss prevention, and its strong claims handling capabilities as having contributed positively to the outcome.
“Our premium policy is based on this strategy of long-term steadiness and sustainability,” noted the CEO. “We want to support our shipowners in challenging times by keeping costs as low as possible. In looking at the premium policy for the next year, there will be no general increase in the estimated total call for owners’ mutual P&I or for mutual FD&D.”
He added that individual exposure and performance, as well as existing premium level, will determine the renewal result to ensure fairness over time.
Gard, which described itself as “having been modest” in its premium setting over recent years, said it has a well-established procedure that allows excess capital to be returned to the membership by a reduction in the last instalment of premium which is deferred to the year after the policy year in question.
It noted that, over the last decade, the actual cost of insurance to mutual members has been reduced by US$392 million compared to the agreed cost at renewals.
