Standard Club has reported renewal of 95% of its expiring portfolio. It said that it had welcomed “a small number of high-quality new members”. The Club also noted that “many existing members have expanded their entries and in a number of cases consolidated their fleet into Standard from other clubs”. Its tonnage in the 2020 annual report was 156m gt.

However, it noted that, while the 2020/21 policy year was forecast to perform better than 2019/20 (when the combined ratio reached 131% and the balance on the technical account was a loss of $110m), it was still anticipated to result in an underwriting deficit. The Club said that this was primarily due to “the frequency and cost of large claims arising within the International Group Pool, which has affected all clubs”.

Standard Club said that the projected deficit also reflected the general low level of premium rating. Despite market turbulence arising from the pandemic, the Club said that its defensively positioned investment portfolio had made a positive contribution. (For 2019/20 an investment return of 9.7% helped reduce the net loss for the year to $41m.)

“Overall, the club’s finances remain strong and reserves will remain in excess of regulatory and rating agency requirements. The board took a decision early on to address these issues and agreed a budget for the 2021 renewal to ensure breakeven underwriting can be achieved in the years ahead”, Standard said.

Mark Collins, Director of Underwriting at the Standard Club said that 2020 had been a challenging year for all and that the Club had continued to support its members through these difficult times. “We, like all clubs, have seen a greater frequency of expensive market losses than predicted, which has had an impact on underwriting”. Collins said that the Club had successfully completed its renewal in line with the budget set by the board, with a view to returning to break-even underwriting.

“Collins said that “it has been a fascinating first 12 months in my new role as Director of Underwriting and I never would have imagined having to oversee my first renewal in a ‘virtual’ environment. I am proud of the result we have achieved and am fortunate to work alongside a talented and experienced team who have the opportunity to support such a high quality and loyal membership”.

https://www.standard-club.com/media/3397715/renewal-2021-pr-23022021.pdf

Last year’s annual report for 2019/20 policy year at:

https://www.standard-club.com/media/3341549/33566_sc_ar20.pdf