June 17th, 2004: Swedish Club reports a very good year
June 17th, 2004: Swedish Club reports a very good year
Last year ended in a healthy surplus for The Swedish Club. Managing Director Frans Malmros told delegates attending the AGM in Göteborg on June 3 that 2003 was “a very good year”, with a Hull & Machinery surplus of USD 10.2 million and a P&I surplus of USD 1.8 million. Investments generated a return of 17.5 per cent, making a substantial contribution to a positive operating result of USD 22.5 million. This surplus has replenished the Club’s free reserves (now totalling USD 81.5 million).
Frans Malmros added that the P&I and FD&D years of 2001-02 were closed with no supplementary calls, continuing an unbroken record of 11 years in this respect. The Club’s claims position in 2003 was stable.
Looking back over the past decade, the 2003 result fell only just short of the record figure of USD 25 million in 1995. Turning to the issue of financial strength, the Club’s Managing Director said: “The objective is to build free reserves equivalent to one year’s premium income. We are very close to this goal. It is a realistic target.”
Reviewing major developments in 2003, Frans Malmros referred to the Club’s introduction of a new Area Team-based organisation in October and the decisions to write following lines on hull and accept lower shares – giving the Club more flexibility in the market. He also pointed to the successful application of a new underwriting model based on more effective risk management.
Turning to the future, he said: “We now have a firm basis for further progress within an environment based on four key principles: mutuality, independence, stability and reliability. Above all, we will continue to focus on the provision of service excellence within a non-profit making framework.”
The Swedish Club’s H&M portfolio stood at 1172 vessels of 40.1 million GT, as at May 1. The average age of this portfolio was 10.8 years.
The P&I book at May 1 totalled 683 vessels of 14.5 million GT (average age: 12.2 years). The FD&D portfolio at May 1 totalled 237 vessels of 7.0 million GT (average age: 10.2 years).
For further information, please contact The Swedish Club
Frans Malmros, Managing Director, Tel: +46 31 638 400
E-mail: frans.malmros@swedishclub.com