Emergency Contact Annual Report 2020 Home Latest updates Publications Annual Report 2020 21 Apr 2021 Sign up for alerts The Shipowners’ Club, the leading mutual P&I insurer in the smaller and specialist vessel sector, has reported encouraging results for the year ending 31 December 2020. The Club has reported an underlying combined ratio of 101.0%, an increase in Members to 8,182 and an overall surplus of US$ 39.1m, including an investment portfolio gain of US$ 49.8m. Whilst claims frequency remained broadly in line with last year, the Club recorded a US$ 2.5m reduction in the total cost of claims. This was in part due to lower levels of shipping activity as a result of COVID-19. The reduction in the cost of claims also contributed to a lesser underwriting deficit, when compared to 2019, of US$ 2.0m. Total underlying operating expenses amounted to US$ 55.2m a 2.8% increase. Operating expenses include the acquisition costs incurred from Members’ brokers (which saw a US$ 1.4m increase in the year) as well as the administrative costs of running the Club. The Club’s reinsurance costs for 2020 amounted to US$ 24.9m, which represents 10.7% of gross earned income, and is comparable to the 2019 reinsruance cost. Financial summary Underlying combined ratio 101.0% (2019: 105.1%) Capital and free reserves US$ 379.1m (2019: US$ 340.0m) Earned premiums, net of reinsurance US$ 207.2m (2019: US$ 200.0m) Incurred claims, net of reinsurance US$ 154.0m (2019: US$ 156.5m) Underwriting deficit US$ 2.0m (2019: deficit of US$ 10.3m) Investments returned a gain of US$ 49.8m (2019: gain of US$ 48.8m) Entered Members 8,182 (2019: 7,886) Financial review The Club has generated a surplus for the year of US$ 39.1m (2019: surplus of US$ 36.1m). This surplus includes a one-off pension charge of US$ 7.0m in respect of a payment made to the defined benefit pension scheme in the UK. Excluding this one-off charge results in an underlying surplus of US$ 46.1m. The Club’s investment portfolio retu