Insurers look forward with optimism
Marine insurer The American Club says that despite the downturn, insurers made excellent progress in 2009 which is continuing into 2010.
The club’s policy of careful risk selection and loss control is said to be continuing to bear fruit. This, in combination with much improved investment earnings, has given the club increased traction in strengthening its finances and expanding its tonnage and premium base. In particular, growth in Asian markets had been strong.
The club says that the global slump lingered into the early part of 2009, the it subsequently experienced a very good year, and in 2010 has a larger membership and significantly increased free reserves.
Operational results were positive – despite lower net premium earnings, incurred claims remained broadly constant at $76 million while operating expenses were reduced by 7.5%. This was enhanced by a much better return from the club’s investments. These factors enabled the club to report a rise in reserves of 36% through 2009, a notable result given the difficult economic conditions which prevailed throughout the year.
The club, like many others in the marine insurance industry, looks optimistically into the future. Chairman, Arnold Witte of Donjon Marine said: “The progress which has been made by the American Club… points to an encouraging future, built on a solid foundation of much hard work in the recent past.”
A record figure of some $59 million in free reserves was recorded at March 31, 2010, a 22% increase on the figure of only three months earlier.
