Rena sinking, Thai floods, NZ quake, Japanese Tsunami cut TT Club profits
2012 04 19
- Details
A SERIES of "catastrophic claims' has resulted in a plunge in profits at London transport insurer TT Club, according to its CEO Charles Fenton.
TT Club was much exposed to earthquake in Christchurch, New Zealand, the earthquake/tsunami in Japan, flooding in Thailand as well as facing substantial losses arising from the grounding of the 3,370-TEU Rena off New Zealand in October.
TT Club does 32 per cent of its business with ports and terminals, 23 per cent with ocean carriers and related service providers, containers and chassis equipment as well as 19 per cent with logistics operators.
These claims offset the TT Club's 8.5 per cent increase in premiums to US$181.7 million, compared with $167.4 million in 2010, and led to net profit falling 90 per cent to $1.2 million.
But Mr Fenton said the TT Club's combined ratio of 98.6 per cent remained under 100 per cent, thus payments and expenses were more than offset by income, reported London's Containerisation International.
Said TT Club chairman Knud Pontoppidan: "This is a very important and healthy position to be in, given market conditions as they are."
Mr Pontoppidan also took comfort in the TT Club's record $145.4 million reserves, its good underwriting results and stable financial position.
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