Financial Progress Continues Strongly at West of England
Following its Board meeting in Greece on May 25th, the West of England is pleased to confirm that the clear financial progress reported last year has continued strongly throughout 2010.
The Club’s strategy continues to be to concentrate on making significant progress on all financial fronts.
The Report and Accounts as at 20th February 2011 will show an excellent return on investments of more than 8%, positive cash flow, improving underwriting ratios, and a continuing strengthening in the claims and IBNR provisions. The result is an increase in net assets to nearly $700 million, the highest level in the Club’s history, and in the free reserve from $169 million to $183 million.
This figure reflects improving back year results and in particular better than anticipated claims for Policy Year 2009.
The 2008/09 year has been closed without further call and the release call for the 2009/2010 year has been halved from 30% to 15%. The release for 2010 has been left unchanged as this is still a relatively undeveloped year.
The decision not to renew members with high risk exposure and persistently adverse records for 2011 where the required premium levels were not met, has resulted in a reduction in entered mutual tonnage to approximately 49 million g.t., but the Club’s capital position and overall risk profile have been significantly strengthened.
The Club will continue to pursue a prudent and cautious growth strategy to avoid any dilution of assets and capital reserves. The fundamental commitment remains to provide the benefits of a first class claims and loss prevention service from a soundly financed Club with increasingly strong capital and reserve ratios.
For more information, contact:
West of England Insurance Services (Luxembourg) S.A.
T: +44(0)207 716 6051