TSC Annual Report 2024 final - Flipbook - Page 46
Managing
Director Report
Board
of Directors’
report
At year-end, Hydra receivables (see Note 19 and Note 2 in
the section on counterparty risks) had an estimated value
corresponding to USD 14 (20) million. These are reported in
the balance sheet under the heading “Other assets”.
127 (see Note 28 for more information).
The maximum total cost of the bonus program for employees
has been set at 10 % of the Club’s salary costs including social
security expenses. Provision for bonuses has been made in 2024.
Environment
Note 28 also contains information on the principles for
establishing salaries and bene昀椀ts for senior management.
The Club’s Sustainability Report, in accordance with EU
Directive 2014/95 (included in the Chapter 6, Section 12 of
the Swedish Annual Accounts Act, 1995:1554 (ÅRL)),
has been published on the Club’s website, https://www.
swedishclub.com/about/corporate-governance/esg/.
Signi昀椀cant events after the balance sheet date
The Swedish Club does not have any significant events to
report on items that have not previously been communicated
but relate to periods up to the balance sheet date. After the
balance sheet date, insurance activities have developed in line
with the established goals and expectations. Performance of
the Club’s investment portfolio has been favourable during the
initial months of 2025.
In January 2025, the rating institution, AM Best, con昀椀rmed
that the Club’s 昀椀nancial rating had improved from A- negative
outlook to A- stable outlook.
Employees
The Swedish Club is a knowledge-intensive organisation.
The commitment, competence and performance of
employees are decisive factors for the organisation’s success
and competitiveness.
The Swedish Club intends to remain an attractive employer
by having a progressive human resources policy, a healthy
organisational culture and well-established core values.
The Swedish Club’s core values are as follows:
• Proactive
We are proactive in our approach.
We respond in a forward-thinking and proactive manner
and focus on cost-ef昀椀cient solutions.
• Reliable
We are reliable in our values, and we stand behind them.
Through honesty and fair treatment, we are able to gain
con昀椀dence and ensure continuity.
• Committed
We are committed in everything we do.
We build and develop relationships of mutual bene昀椀t.
Our service is based on respect and professionalism.
The average number of employees during the year was
46 The Swedish Club | Annual Report 2024
Risks and uncertainties
The Swedish Club’s operations give rise to various types of risks
that could have an effect on its result and 昀椀nancial position.
There are four main categories of risk:
• Insurance risk
• Counterparty risk
• Operational risk
• Financial risk
An Internal Capital Model (ICM) is used for calculating and
monitoring the risks. The model is a key component of the
Club’s process for Own Risk and Solvency Assessment
(ORSA). It is also an important control mechanism for
calibrating capital needs.
Note 2 contains an overview of how these risks affect
operations and how the Club manages them.
Prospects for 2025
The global economic prospects for the year are dif昀椀cult
to predict. The consequences of the war in Ukraine
and instability in Gaza, with their ripple effects, cause
great uncertainty about world trade and economic
development. The assessment is that the Club’s
insurance activities are not significantly impacted by
short-term economic fluctuations. The impact on asset
management, however, could be signi昀椀cant. At the start of
2025 and in light of the prevailing uncertainty, the decision
was made to maintain the – compared to the long-term
strategic investment strategy – lower level of risk exposure
in the investment portfolio.
In 2025, the Club will continue prioritising quality in the
insurance portfolio and price recovery ahead of volume
growth. Our assessment is that the net claims costs
for 2025 will be below the volume-adjusted level for
2024. During the initial months of 2025, there has been
favourable growth in stock markets and slightly lower
interest rates, which has had a favourable impact on the
Club’s asset management.
Our assessment is that the Club’s relative competitive strength
will stand, and strong 昀椀nancial position provides resilience and
offers comfort to business partners and members.
