Skuld warns on rates after posting $30m H1 loss

Norway-based marine insurer Skuld said rates will need to go up further to keep pace with rising claims costs. Reporting a technical loss of $30m for the first six months to August 2024, Skuld said it was impacted by several large claims in its portfolio as well as an increase in claims from its participation in the protection & indemnity pool operated by the International Group of P&I Clubs, which saw its pool costs more than double year on year to $25m.

Ståle Hansen, president and CEO of Skuld, said claims have returned to more normal levels after a few benign years for large losses. “The industry needs further rate adjustments to absorb higher claims costs,” he warned, as the group posted a combined ratio of 111% for the first half.

He added that a strong performance from its investment portfolio closed the period with a positive result of $25m.

Further, the global insurer reported an 8% increase in premiums and call for both mutual and commercial lines of business to $277m during the first half of 2024.