West P&I Club posts 94.5% CR, underwriting surplus hits $15m

In their results for the 2023-24 financial year, West P&I Club has posted a 94.5% combined ratio, representing a solid improvement from 96.7% from last year.

The 94.5% figure represents the Club’s best combined ratio since 2017, and one that is considerably ahead of the recent International Group combined ratio average of 114%.

At the same time, West reported an underwriting surplus of $15 million for the 2023-24 financial year.

Notably, West’s incurred costs for its own Members’ claims of $112 million is on average $20 million lower than the 2020–2022 policy years.

As well as this, West’s pool share for the 2023 policy year remained low at 6.56%.

West noted that the cost of claims from other International Group clubs was also relatively benign for the second consecutive year.

Moreover, gross earned premiums for the 2023-24 financial year sat at $326 million, a substantial increase of $32.4 million from last year.

The company’s successful renewal in February 2023, which notably saw the Club’s premium exceed $300 million for the first time, underpinned this performance.

In addition, West’s investment portfolio delivered a return of 4.6%, generating $35 million.

Furthermore, The Club’s Free Reserve increased by 20% to reach $276 million, and the solvency coverage increased from 176% to 195%.

West P&I’s Group CEO, Tom Bowsher, commented: “When I presented our year-end results 12 months ago, I spoke about West looking forward with confidence, building upon our recent successes, and with the aim for the coming year of further strengthening the Club’s capital. We have exceeded our expectations in this regard with the financial results again showing strong progress against every measure we evaluate ourselves upon.

Adding: “Our Fixed, Chartering and Defence products now generate approximately USD 70 million of gross premium per annum. West Hull exceeded our premium targets in its first year and the recent launch of our Piracy Protection product is receiving significant support from our Members and the wider market. Together with West War, and the products and services offered by our partners at Nordic Marine Insurance, Qwest and Astaara, we can cater to all the needs of our Members.”

“The Club’s improved capital strength allows us to continue to invest capital in all areas of the Club, further strengthening West’s value proposition to our Members and the wider market. We continue to receive strong support from our existing mutual Members, and we were also delighted to secure a number of new Members to the Club across all regions,” concluded Bowsher.

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