Summary: Published 29 August 2019
The result for Norwegian Hull Club in the first six months of 2019 is minus USD 4.3 million. The technical result of insurance operations is minus USD 26.0 million, while the result from investment income and other financial items is USD 21.7 million.
Profitability on insurance operations is below expectations due to adverse claims development. The combined ratio is 138 % so far in 2019. Return on the investment portfolio is 5.3 % in USD. The USD return corresponds to USD 21.5 million. The balance of financial income stems from interest earned on bank accounts and receivables as well as foreign exchange items.
Equity is USD 299.4 million at the end of June 2019.
Hans Christian Seim, CEO of Norwegian Hull Club, commented: “The result for the first half of 2019 is significantly impacted by claims. In our industry, claims figures will always be volatile. In 2019, gross claims are higher than what we expect long term but, more importantly, there are a larger number of medium-sized claims for own retention.
“On the positive side, premium income is up in the second quarter as rate increases are materialising. Coupled with strong investment income, the result for the second quarter only is plus USD 6.8 million.”