Despite being the P&I insurer for Kea Trader, Scandinavian marine insurer Skuld increased profits to $58mn in 2017, the Oslo-headquartered company announced today.

Skuld said it was the fifteenth consecutive year that the insurer had reported a positive underwriting result with a 97 percent combed ratio and that the group has record contingency reserves of $442mn.

The insurer also unveiled a new members’ performance bonus which – alongside its premium credit – will reward its shipowner members whose premiums exceed claims.

Ståle Hansen, Skuld president and CEO said: “We are very pleased to announce another strong Skuld result. Moreover, the introduction of the members’ performance bonus, on top of the members’ premium credit, shows not only our healthy financial state but also reinforces our commitment to our members.”

Hansen added: “We remain cautiously optimistic for 2018/19 amid challenging shipping market conditions and volatility in the financial markets, and we look forward to continuing to provide our members and clients with service and competence they can rely on.”

The container ship Kea Trader ran aground in July last year and the loss estimates escalated to $215mn from initial P&I loss forecasts of $170mn, making it the largest marine loss to impact the International Group (IG) P&I reinsurance program in 2017/18. It is owned by Skuld member Lomar Shipping. As a member of the IG, Skuld’s retention for the loss stands at $10mn. The P&I club’s pooled layer covers the next $20mn before a $70mn layer reinsured by Hydra - the club’s captive - incepts.

In a statement, Skuld said it “experienced a few large claims but over the year the frequency of regular claims remained low which contributed positively to the 2017 annual result”.