2011 ROTY - UK P&I

FINANCIAL HIGHLIGHTS
FINANCIAL STRENGTH
CLAIMS POSITION
• Capital and reserves
increased to $478 million
• Capital and reserves
per ton increased to $4.5
• Standard and Poor’s rating of A- (Stable)
• Capital adequacy per the S&P capital
model comfortably in the AA range
• Total assets $1.6 billion
• 2010 policy year performing
broadly in line with 2009
• Prudent approach to reserving maintained
particularly on the 2010 policy year
• 2009 encouraging development
within prudent reserve set last year
• Frequency of claims remains low
• Loss record within the Pool maintained
so reducing future pooling percentages
Capital and reserves
for financial years 2006 –2011
Net notified claims
at 12 months for policy years 2001–2010
500
5
250
400
4
200
300
3
150
$m
$
$m
200
2
100
100
1
50
0
2005/6 2006/7 2007/8 2008/9 2009/10 2010/11
0
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Free reserves
Hybrid capital
Reserves / Ton (right axis)
Cargo Cruise curtailment FCOO
Illness Injury Charterers Pool
140%
120%
100%
80%
60%
40%
20%
UNDERWRITING DISCIPLINE
• Combined ratio of 98%
beats target of 100%
• 65% of all entered vessels
below 10 years of age
• Discipline maintained on entry criteria
with quotes refused on 5 million GT
• 25 new Members in the year
Combined ratio for financial years
2006 –2011
2005/6 2006/7 2007/8 2008/9 2009/10 2010/11
$ m
100
80
60
40
20
0
-20
-40
-60
-80
INVESTMENT PERFORMANCE
• Return of 6.16% for the year,
versus a benchmark 5.97%.
• Strong returns from each asset class —
equities, bonds and absolute return funds
• Portfolio positioned
conservatively for the future
Financial year
investment performance
2005/6 2006/7 2007/8 2008/9 2009/10 2010/11
12%
10%
8%
6%
4%
2%
0%
-2%
-4%
-6%
-8%
Reported
combined ratio
Excluding
supplementary calls
Target
$ return % return