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TT Club sneaks by with its head well above water

BRITISH international transport insurer TT Club's combined ratios only went up 0.95 per cent year on year in 2016 but other factors put a more positive spin on club performance, according to the company.

Gross earned premiums went up 3.3 per cent to US$177.8 million, and the surplus one year to the next was $5.2 million, up 8.3 per cent.

But total assets fell 0.8 per cent year on year to $613 million while reserves increased 3.7 per cent to $185.8 million,

Said TT Club chairman Ulrich Kranich: "2016 will be a year many of us remember for the increasing number of factors causing instability and showing little sign of abating.

'the Club retained its A- (Excellent) financial strength rating from Am Best for the 11th successive year and maintaining this rating is one of our main objectives.

Financial performance was in line with the board's business plan. As a mutual, the club's finances are managed to produce a small surplus and to achieve this was an entirely satisfactory result."

2016 was a good year for new business for the club and as its member retention rate continued at the very high levels of recent years, premium income was managed to satisfactory levels.

Large claims in 2016 were just below the long-term trend level. The main claim event in 2016 was the demise of Hanjin Shipping which led to claims on the club from transport operators and container lessors."

"Overall, the club's surplus and reserves grew by $5 million in the year. Regulatory and solvency capital remained very strong in the year and is forecast to continue as such in 2017, and accordingly it is expected the club will maintain its Am Best A- rating in 2017."

The London-based TT Club is the international transport and logistics industry's leading provider of insurance and related risk management services.

Established in 1968, the Club's membership comprises ship operators, ports and terminals, road, rail and air freight operators, logistics companies and container lessors.

As a mutual insurer, the club exists to provide its policyholders with benefits, which include specialist underwriting expertise, a world-wide office network providing claims management services, and first class risk management and loss prevention advice.