UK P&I Club, which provides specialised insurance for shipowners and operators, has reported an overall financial surplus of US$46 million for the 2006-07 financial year ending February 20.
This result has increased the club's free reserves by 20 per cent to $263 million, mostly because investment returns were almost double the club's long-term target for investment income of 4.5 - 5 per cent; and a re-insurance recovery from the Swiss Re triggered by an upsurge in outstanding claims.
In 2006-07, the group filed 28 claims on the pool, more than double the average level of about 13 in any group policy year. Only three small claims came from the UK Club. As a result, the cub's contribution to the pool will substantially exceed any recovery. However, the club is protected against this adverse impact through its re-insurance contract with Swiss Re under which it has recovered $54 million.
This result has increased the club's free reserves by 20 per cent to $263 million, mostly because investment returns were almost double the club's long-term target for investment income of 4.5 - 5 per cent; and a re-insurance recovery from the Swiss Re triggered by an upsurge in outstanding claims.
In 2006-07, the group filed 28 claims on the pool, more than double the average level of about 13 in any group policy year. Only three small claims came from the UK Club. As a result, the cub's contribution to the pool will substantially exceed any recovery. However, the club is protected against this adverse impact through its re-insurance contract with Swiss Re under which it has recovered $54 million.