The UK P&I Club reported a surplus of $40m for the year ending 20 February 2004, up from a loss of $31m in the previous year.
It said free reserves increased 22%, from $179m to $219m.
Boosting the improved performance was a strong return on investments of $129m, a club record of 18%. The weakness of the US dollar also contributed to the club’s financial performance.
Premium income also went up during the 12 months, reaching $305m. The club said this was a welcome boost to reserves.
Owned ships entering the club increased by approximately 5.5 million gross tonnes during the year, up 6%. The increase was comprised of existing members expanding their fleets as well as new entrants into the club.
It said it continued to take a cautious approach to the level of future claims. The 2002 policy year volume was exceptionally heavy across the marine insurance industry, with an unusually high number of major casualties, said the club.
Claims on the 2003 policy year were not as large, but the club said it remained cautious given the possible effects of a weak US dollar and strong shipping activity.
The club’s board has ordered a 17.5% general increase in premiums for the 2004 policy year, based on a modest investment outlook and an upward trend in claims.
