The West of England has achieved an improved underwriting result for the third year in succession.
Following a Board meeting on 16 May the Club has reported to members that at the end of its financial year at 20 February 2012 its combined ratio had further improved to 108.7% compared with 128.7% two years ago.
Lower claims from members have been the main contributor to this positive result. Their claims in the 2011/2012 policy year have been significantly lower than in recent prior years and at the same time claims on older policy years have either remained generally stable or have reduced.
External factors in the form of higher than anticipated claims by other Clubs on the International Group Pool, including the “Rena” and “Costa Concordia” and tough conditions in investment markets have held back growth in the Club’s free reserves which remained at just under US$ 180 million. The investment return was 2% and the Club’s total assets remained substantially unchanged at US$672 million.
The Club reported that the 2009/10 year is now closed. No further call is forecast for the 2010/2011 policy year and the release call has for the year been reduced from 30% to 15% of the advance call. For the 2011/2012 year, the forecast additional call and release call remain unchanged at 30% of the advance call.
The Club has maintained its policy of steady growth with quality tonnage. This approach has continued to have strong support from members and taken mutual tonnage to 50.5 million GT at year end. That support has continued through the February renewal both with tonnage from new Members and increased tonnage from existing Members and with firm commitments for further tonnage during the year. The first three months of the new policy year have brought a further increase in mutual tonnage of 1.2 million gt, the majority of which is new buildings.
For more information, contact:
Jerry Westmore
Director
West of England Insurance Services (Luxembourg) S.A.
T: +44(0)207 716 6051
M: +44(0)7836587972
E: jerry.westmore@westpandi.com