Pool claims’ heavy impact on UK Club results



Continued high claims levels and a turbulent investment environment shaped the outcome of the UK P&I Club’s financial results for the policy year 2007 with an increase in the claims retained by the Club and a slight reduction in those covered by the International Group Pool. However, the latter again had a huge impact on the Club’s results.

According to the Club, total funds were $992 million with net claims reserves $763m and free reserves $229m, down $34m.

Investment performance was above initial expectations at 6.5% for the year compared to 9.7% in the previous year. Most investment returns came from the fixed income portfolio of 8.45%.

Great emphasis was placed on capital preservation during the second part of the financial year. In October, equity holdings were reduced from 19% to 1.6% and the proceeds placed in short-dated fixed income securities and bank deposits, substantially reducing the Club’s investment risk.

Gross premium income was $386m. Fixed premium account business continued to be a strong contributor with time charter premiums accounting for more than $50m.