Emergency Contact 2015 Annual Report Home Latest updates Publications 2015 Annual Report 3 May 2015 Download page as PDF Sign up for alerts Combined ratio improved by 4.3% to 94.6%, reflecting strong business retention levels, a prudent risk management approach and exits from certain businesses. The Consolidated Income and Expenditure Account for the Club has once again seen a growth in earned income during the year. Gross premiums earned have increased by 1.5% to US$ 247.3 million. Earned premiums net of reinsurance have decreased by 0.8% to US$ 211.4 million due to higher costs of reinsurance purchased during the year. The 2014 policy year has experienced a reduction in claims frequency of 4% over the preceding year, although the gross average value of open claims files increased by 52%. With the cost of other club’s claims declared to the International Group Pool reducing and an improvement in the claims reserves made for prior years, the ultimate value of claims, net of reinsurance, has reduced by 8% over the preceding year to US$ 145.5 million. Operating expenses, comprising business acquisition costs (brokerage) and administrative expenses, increased by 3.7% to US$ 54.2 million, with acquisition costs remaining stable at US$ 30.7 million and administrative expenses increasing by 8.9% to US$ 23.5 million. Overall, the resulting underwriting surplus of US$ 11.8 million represents a combined ratio of 94.4%. The investment portfolio produced an overall loss of USD5.4 million representing a negative return of 0.9% on capital. The main performance drivers on the investment portfolio were: positive absolute equity returns; emerging market equities underperforming with a negative return; the fixed income segment outperforming its benchmark; bonds being dragged into a negative terrain due to currency losses; substantial negative currency effects on the overall return. The overall investment return, after expenses and exchange rate movements, amounted to an overall