The Swedish Club is fit and strongly positioned for more development, Lars Rhodin, Managing Director, told the Club’s Board meeting in Shanghai yesterday.

Lars Rhodin described the outcome of the 2010-11 P&I renewal as “good.” He added: “An encouraging renewal rounded off a year with strong results. We have continued to achieve solid progress. On completion of the renewal on February 20 our P&I portfolio had increased by about 600,000 GT entered with immediate effect and notable tonnage committed for entry over the coming policy year. This will bring the P&I book to over 40 million GT.”

The Club’s Managing Director also reported:

• All insurance classes (P&I, H&M and FD&D) in surplus or in balance
• All business areas now having a combined ratio of 100% or better (P&I, 97%; Hull, 90%; and FD&D, 100%)
• Operating result of USD 14.8 million
• Healthy investment returns in 2009 (income totalling USD 7 million)
• Free reserves at a record level – up from USD 107 million to USD 121 million.

Lars Rhodin commented: “We have an appetite for further progress in 2010. The Swedish Club is seeking further development over the coming 12 months, both in its P&I portfolio and the Hull book, when attractive opportunities arise. We now also see stronger market interest in our comprehensive Hull lead offering. Taking P&I and Hull together, we look forward to continued progress, within a framework of steady and carefully-controlled, sustainable growth.”

Board members were briefed on new initiatives to reinforce and enhance The Swedish Club’s position.
Lars Rhodin said: “Firstly, we are commissioning a new, risk-based capital model – an integrated solution for capital adequacy and sophisticated risk management. This will become fully operational in 2010, meeting Solvency II compliance standards and also providing a range of high precision actuarial/risk management tools. This is an exciting direction in risk management. “Secondly, during 2009 we completed a comprehensive restructuring of the Club’s reinsurance arrangements. It amounts to the most important change in this area for 25 years. The new arrangements are founded on a multiline package that takes full account of The Swedish Club’s entire offering. This maximises the benefits of diversity and enhanced spread. The Club now has a reinsurance shield offering greater cost-efficiency, whilst maintaining the essential cover for not expected exposure.”

Lars Rhodin concluded: “As we continue to grow and develop, The Swedish Club will not lose sight of its fundamental mission: to deliver high quality, cost-effective cover within a package of service excellence that is second to none.”

Yours sincerely,
The Swedish Club
Lars Rhodin

Contact:
Henric Gard,  The Swedish Club, Telephone: +46 31 638 400
TRS Public Relations, Telephone: +44 1304 813 366

The Swedish Club was founded in 1872 and is today a leading mutual marine insurance company, owned and controlled by its members. The Club writes Protection & Indemnity, Freight Demurrage & Defence, Hull & Machinery,
Hull Interests, Loss of Hire, War Risks, and any additional insurances required by shipowners or charterers. The head office is located in Gothenburg, Sweden, and branch offices are located in Piraeus, Hong Kong and Tokyo. More information about the Club is available at: www.swedishclub.com