Stable Claims and Strong Investments Further Strengthen West
13 May 2020 - West of England P&I Club has today announced its 2019-20 financial results and thanks to an exceptional investment return, a stable position for its Members’ own claims and strong Member retention driven by service excellence, has continued to strengthen its financial position.
The Club’s claims performance for prior years has developed more favourably than expected and, as forecast, West’s claims for the current Policy Year were substantially lower than the preceding two years. In conjunction with a 6.5% investment return and the return of large value claims to more normal levels, the Club’s capital position has been substantially reinforced. The West’s Free Reserve grew over 10% to $338.1m, which is a record high, and provides the Club with capital strength well in excess of Standard and Poor’s “AAA” requirements for the sixth consecutive year.
Francis Corrigan, CFO at West, commented, “There have been many challenges including a prolonged period of market-wide erosion of premium and a second consecutive year of higher than expected contributions to other Clubs’ Pool claims. However, despite these negative pressures our robust underwriting has achieved a combined ratio of 107% and a continuing improvement of the Club’s technical result and financial position.”
Tom Bowsher, Group CEO at West, commented, “The global pandemic has caused enormous volatility in the financial and maritime markets and we are doing all we can to assist our Members through these difficult times. In our 150th year the West’s capital adequacy has never been stronger and with an excellent global team that has continued to work seamlessly despite the impacts of Coronavirus we are well positioned to support our Members through any challenges they may face.”