Major marine insurer announces record results – 10% off for members

Major marine insurer announces record results – 10% off for members | Insurance Business New Zealand

Insurance News

Major marine insurer announces record results – 10% off for members

“We’re stronger than ever” claims P&I boss

Insurance News

By
Matthew Sellers

The world’s leading P&I marine and energy insurer, Norwegian giant Gard has announced its earnings for the year, showing a profit after tax of US$236 million, alongside a gross written premium reaching a record US$1,183 million. This achievement is marked as the best outcome in the company’s hundred year history.

The carrier is also boasting a combined ratio of 93%, an insurance technical result of US$67 million, and an investment non-technical result of US$161 million. Equity stands strong at US$1,471 million.

Year

US$m GWP

2020

874

2021

922

2022

1167

2023

1183

Rolf Thore Roppestad (pictured), CEO of Gard, expressed immense pride in the results, emphasising the company’s role as the preferred insurance partner for an increasing portion of the global fleet. “I am proud to see that Gard has yet again delivered very strong results. In fact, this year’s result is the second-best we have seen in over a century of serving our members and clients. Gross written premium is also at an all-time high,” Roppestad remarked.

Highlighting the factors behind the strong financial performance, Roppestad noted the relatively few large claims in the past year and a satisfactory rebound in investments after the financial turmoil in 2022. “In many ways, Gard is now stronger than ever,” he stated.

Gard’s board of directors has decided to offer a 10% owners’ general discount for members renewing in the 2024 policy year. This marks the 15th consecutive year Gard has returned capital to its members, translating to approximately US$50 million in savings for its owners this year.

Roppestad further commented on the company’s financial strategy, “We always focus on staying financially strong while at the same time not holding more capital than is needed. With this, we are striking the right balance, staying well-positioned and fit for the future.”

Gard has, however, confirmed that it hasn’t all been plain sailing. ”I would say [there now is] added complexity to an already volatile and divided world” said Roppestad.

“It also impacts our risk assessments, of course. More broadly, what we are witnessing is a massive shift in global trading patterns – probably the biggest shift we have seen in decades – because of the attacks in the Red Sea and the drought in the Panama Canal. Around 70% more ships are now going around the Cape compared to last year. This has an impact on shipping markets, and it has an impact on the risk picture for us as insurers.

“In addition to this, the shadow fleet is still growing. This is a fundamental and unresolved challenge.”

Gard, a shipowner-controlled provider of P&I, marine, and energy insurance, operates globally with more than 650 employees across 13 offices. The group’s direct insurance entities including Gard P. & I. (Bermuda) Ltd, Assuranceforeningen Gard, Gard Marine & Energy Limited, and Gard Marine & Energy Insurance (Europe) Limited, boast an ‘A+’ rating with a stable outlook from Standard & Poor’s, highlighting their financial stability and reliability in the industry.