TSC Annual Report 2024 final - Flipbook - Page 44
Managing
Director Report
Board
of Directors’
Board of
Directors’ report
The Board and the Managing Director of The Swedish Club (Sveriges Ångfartygs Assurans
Förening) hereby present their annual report for the year 2024, its 152nd year of operation.
Principal activities and structure
The Swedish Club (also referred to in this report as “the Club”)
is a marine mutual insurer, headquartered in Gothenburg
(Sweden), with service of昀椀ce in Athens (Greece) and branch
of昀椀ces in Hong Kong (China), London (UK), Singapore and
Oslo (Norway). The Club also has a subsidiary in Hong Kong.
The Swedish Club is both owned and directly controlled by
its members.
and balance sheet. For more detailed information, please see
the Notes.
Result for the period
For 2024, the result before appropriations and tax was a
pro昀椀t of USD 34 (30) million. Other comprehensive income,
related to hedging of future operating expenses denominated
in SEK into USD, was USD -1.1 (3.7) million before tax.
The Club’s activities concern marine insurance, in the
following classes of non-life insurance: Ship (Marine &
Energy), Ship liability (Protection and Indemnity, P&I) and
Defence (Freight Demurrage & Defence, FD&D). The Club also
undertakes accepted reinsurance.
The relationship between the result expressed in USD and
SEK is shown in the table below as a change in free reserves:
In accordance with the Swedish Annual Accounts Act, the
Club’s subsidiary in Hong Kong has not been consolidated
as it is of lesser importance with regard to true and fair view
requirements.
Signi昀椀cant events during the year
Price adjustments and volume increases enabled the Club
to achieve balanced growth in premiums which, overall,
contributed to improved pro昀椀tability and a positive cash flow
from insurance activities. Investments bene昀椀ted from sharply
rising stock markets and attractive interest rates, which
contributed to a good return from the investment portfolio.
The Club maintained its lower level of risk exposure in the
investment portfolio during the year. The Club’s financial
position, expressed as both basic own funds (BOF) and
investment assets strengthened significantly during the
year. The improvement in basic own funds contributed to a
strengthening of the solvency ratio in accordance with the
Solvency II regulations despite higher capital requirements
stemming from the more favourable investment portfolio and
anticipated growth in premiums. The solvency requirements
were once again met with a good margin.
Both of the rating institutions con昀椀rmed their ratings of the
Club as follows: Standard & Poor’s at BBB+ and AM Best at A-.
Since the invasion of Ukraine in 2022, the EU and G7 countries
have implemented wide-ranging sanctions against Russia and
certain other countries. The Club’s compliance in this area has
required signi昀椀cant investments in knowledge and processes.
Changes to the sanctions packages happen frequently and
quickly, which is why the Club has been continuously improving
its ability to manage changed requirements and risks.
Free reserves
USD m
USD/SEK
SEK m
31 December 2023
183.7
9.983
1,834.0
Income for the
period 2024
34.0
549.7
Other comprehensive
income
-1.1
-
Tax expense
for the year
-0.0
-0.4
31 December 2024
216.6
11.002
2,383.3
Insurance activities
Gross premiums written in 2024 amounted to USD 244 (243)
million. Following the deduction of outgoing reinsurance
premiums totalling USD 60 (56) million, premiums written
amounted to USD 184 (187) million. Earned premiums, net
of reinsurance, amounted to USD 188 (179) million.
Claims incurred, net of reinsurance, amounted to USD 156 (150)
million. Changes in other technical provisions amounted to
USD 13.1 (3.3) million. The total costs for net claims incurred
correspond to 76 (82) % of earned premiums, net of reinsurance.
During the year, there were 35 claims reported (whereof 7 from
the IG pool system) in excess of USD 0.5 million. In 2023, there
were 42 such claims (whereof 7 from the IG pool system).
Operating expenses for insurance activities amounted to
USD 40 (37) million. In relation to earned premiums, net of
reinsurance, this level corresponds to 21 (20) %. The balance on
the technical account amounted to USD 21 (8) million.
The combined ratio was 98 (102) %.
Financial overview
Result by class of insurance
The following is a brief commentary on the income statement
The combined ratio for P&I was 97 (98) %. Earned premiums,
44 The Swedish Club | Annual Report 2024
