Home Commercial book Skuld announces a positive result for the semester in significant improvement year-on-year

Skuld announces a positive result for the semester in significant improvement year-on-year


Skuld today announces positive net income of $18 million for the first six months of its 2022/23 fiscal year ending February 20, 2023 (compared to negative $24.9 million for the same period in 2021/ 22). The result was mainly driven by a positive technical result, as well as a significant investment contribution from the finalization of the sale of Asta.

The half-year technical result amounted to 12.1 million dollars, with an overall combined ratio of 95%. Gross premiums and calls increased by $27 million to $228.1 million from the same period last year, with growth in both mutual and commercial lines of business. The semester was characterized by a mild large claims environment compared to the same period last year. During the first six months, no major new claims were reported to the International Group pooling system for this insurance year.

The positive six-month technical result was driven by the positive contribution from Skuld’s commercial business lines, while the mutual business portfolio generated a combined ratio above target. The uncertain claims environment and the expected future impact of inflation on claims costs confirm the continued effort to rebalance the mutual portfolio through improved rates.

Net investment income for the period had a negative contribution with an investment return of -2%. The war in Ukraine, energy shortages in Europe and high inflation have created volatility, shifted yield curves significantly up and reduced the value of most asset classes. The strengthening of the US dollar also had a negative impact on the investment portfolio. The sale of Skuld’s stake in Asta, which was completed in July, helped mitigate the unrealized loss during the period.

Ståle Hansen, President and CEO of Skuld, said: “We are pleased with this six-month result, which represents an impressive reversal from the same period last year. We continue to see the benefits of the high quality of our seized tonnage, while our risk mitigation and loss prevention initiatives continue to help limit lower level attritional losses. In addition, our business diversification strategy remains a successful priority.

“But we have to be realistic; the insurance and investment environments are still extremely challenging, and with this in mind, the threats imposed by the war in Ukraine and its political ramifications, high energy costs and inflation are always on our minds the need for reasonable pricing, selective underwriting and very close working relationships with all of our members and clients. In doing so, we maintain our leadership position through our financial strength and commitment to the highest quality service and we will continue to provide Members, Clients and Brokers with our world-class coverage and services, so that they can all be insured with Skuld.

Please see the full report on our Financial Reports Page.