Flip book - Skuld

CurrentCurrent/From CEO’S report– Innovative solutions, strong performance and outstanding serviceFrom Chairman’s report– sustainable and resilient developmentnew perspectivessteady courseNine consecutive years of underwriting surpluses, record highcontingency reserves and gross tonnage climbing to 66.7 million– Skuld’s strategic and sustainable long-term approach is backedby a solid 2011.The determined execution of our growth strategy in 2011 enabledus to achieve strong results and generate significant value for ourmembers, while positioning us to drive P&I performance, industrydifferentiation and commercial expansion.Douglas Jacobsohn, President & CEO“Today’schangingshippingand offshoreclimatesrequire nimble,practicalsolutions.”Throughout 2011, Skuld continued its robustperformance and commercial diversificationdespite serious macroeconomic challengesfacing the industry and our members. We area game-changing marine insurance provider.Few competitors can match our serviceapproach to shipowners’ most challengingissues; none can match the commercialdirection we have taken in 2011.New perspectiveInnovative solutions are our new perspective– a perspective driven by increasing demandfor professional insurance services. Theclub’s growth requires a sophisticatedEnterprise Risk Management approach toallocate risk capital optimally, and simply bethe best for our members and clients.Controlled growthOur core business is P&I, but to deliver firstclassmutual services and offer membersand clients predictability, sustainabilityand the financial protection they need, wemust embrace diversification. The secretto accelerating Skuld’s business is throughvertical growth, that is, by controllinglarger portions of the insurance supply andservice chain.At Skuld, we are taking a new perspectiveand getting ready for tomorrow. Our visioncreates a long-term destination for ourbusiness and provides us with a roadmapfor working together with the best in theindustries that we serve.Klaus Kjærulff, Chairman of the Board“We mitigate therisks inherentin operating in asingle marketby diversifyingour businessinterests.”Same vision – new perspectiveSkuld’s vision, to be a world leading marineinsurance provider through innovation,financial strength and the talents of ourpeople, is still the same, but the game planis changing considerably.Skuld’s commitment and driving force is P&I,while defence insurance and the roll out ofnew products and ancillary covers help meeteven narrower risks and more specialisedrequirements for cover. Having said this, it isbecoming extremely challenging to achievea balanced underwriting result and reach ourgrowth targets based on standalone P&I income.Skuld’s commercial expansion is necessaryfor many reasons. We need sufficient capitalto support our growth strategy, to increasethe volume of risk exposure and to attractlarger corporations with multiple businesslines to our membership base.A ratedStandard & Poor’s recent upgrade of Skuldto a clean A rating, stable outlook is astrong motivating factor and fulfills one ofSkuld’s strategic goals. It also makes meeven more confident that continued focuson fresh new business lines and improvedmanagement structures will usher in anexciting new era in Skuld’s history.The Skuld groupOur future corporate structure will introducethe Skuld group, the name used to describeall of Skuld’s business areas. Head officefunctions will remain in Oslo and the new groupmanagement team will have responsibility forall Skuld group operations.The combination of further organic P&Igrowth and commercial development willincrease Skuld’s bottom line results, thusadding more value to our members.\ premium income+10%Premiumincome increased by 10%.In order to maintain a strong solvencyratio, we will focus on controlledgrowth and increasing contingencyreserves at the same pace aspremium income.\ combined ratio96%Acombined ratio of 96% with anunderwriting surplus of USD 12million gives Skuld nine consecutiveyears of positive underwriting results– the strongest in the InternationalGroup.A ratedStandard & Poor’s has upgraded Skuld to a clean A rating withstable outlook, stating i.a. “Skuld has met our expectations in terms ofunderwriting performance, capitalization, and investment risk appetite[…]”. June 2012This is an excerpt from Skuld’s Annual Review for the year ending20 February 2012. For the complete Review and Accounts, pleasesee Skuld’s website.read morewww.skuld.com/annual-reviews24 beacon / September 2012beacon / september 2012 25