The Standard P&I Club said its free reserves rose by 44% to $164m in the year ending 20 February 2004.
It attributed the rise to a strong investment performance and a reduced underwriting deficit.
Chairman Graeme Dunlop said the club had made good progress in challenging times. “Our approach in the Standard Club will continue to be one of selectivity in our underwriting and insuring only those shipowners in whose operations we have confidence.”
The club's managers, Charles Taylor & Co, said the club had reaffirmed its commitment to achieving underwriting balance rather than relying on investment income to cover any future deficits.
“We made 19.7% on our investment fund this year but such a very string investment can only be expected in exceptional years, and our long term policy is to maintain outstanding financial strength through technically balanced underwriting,” said Charles Taylor chief executive Alistair Groom.
A rise in premium income and lower claims in the latest policy year were offset to some extent by higher Pool claims from other clubs, said Standard.
Tonnage covered rose by 7% year-on-year to 64 million gross tonnes, mainly through existing members insuring additional ships, though growth is not part of the club's strategy.
P&I premium income was up 16% to $143m, with members' own claims for the policy year just ended down 25% compared to the previous year at the same stage of development.
