Emergency Contact 2014 Annual Report Home Latest updates Publications 2014 Annual Report 15 Jul 2014 Download page as PDF Sign up for alerts Report of the Directors The Directors have pleasure in presenting their report and the financial statements of the Club for the year ended 20th February 2014. Activities The principal activities of the Club during the year were the insurance and reinsurance of Protection and Indemnity Risks on behalf of Members. There are no major changes planned to these activities during the current financial year. Financial Review The Consolidated Income and Expenditure Account for the Club has once again seen a growth in earned income during the year, resulting from an overall increase in entered tonnage, vessel numbers and membership. Gross premiums earned have increased by 9.8% to USD 243.7m and earned premiums net of reinsurance have risen by 6.5% to USD 213m. The 2013 policy year saw claims frequency increase by 10% over the previous year. The increase in the cost of claims extended to other clubs’ claims declared to the International Group Pool. However, there has been an improvement in the claims reserves made for prior years. The combination ofthese factors has resulted in the ultimate value of claims (net of reinsurance) increasing to USD 158.5m. Operating expenses, comprising business acquisition costs (brokerage) and administrative expenses, increased by 17.9% to USD 52.3m, with acquisition costs increasing in line with income to USD 30.7m and administrative expenses increasing by 28.9% to USD 21.6m. Overall, the resulting underwriting surplus of USD 2.3m represents a combined ratio of 98.9%.During the year, the value of the Club’s invested assets managed by Berenberg, together with cash resources, have increased in value by USD 55.2m to USD 642.7m, represented by a positive return on investments of USD 24.7m and a net increase in liquid funds of USD 30.6m. The absolute return of the consolidated portfolio developed posi