EXAMPLE PAGE - ANNUAL REPORT - THE SWEDISH CLUB - Flipbook - Sida 25
FINANCIAL SPOTLIGHT
“We were able to take timely decisions and we
delivered a result that was ahead of the
benchmark we compare ourselves to.”
risk appetite. This means that within
reasonable statistical certainty, we
don’t take greater risks than we
estimate we can handle.”
A strong capital base
The Club's 2021 claims costs were
significantly higher than expected.
However, the deviation was inside the
projected confidence interval
actuarially calculated and acceptable
to the Club. “This kind of result occurs
once in a while and our capital buffer
was there by design to absorb it,“ he
says. “We still maintained attractive
solvency ratios, albeit at a lower level.
This, the financial strength, and other
measures contributed to us retaining
our A- rating.”
Emerging from the
pandemic
In January of 2022, when looking
ahead, Kromli expected economies to
continue to grow above long-term
annual average rates as the world
emerged from the trough of the
pandemic. “We expected to see rising
inflation and rising interest rates on the
back of global economic activity
getting back on track.”
Now, with the war in Ukraine having
escalated since February the outlook
has shifted. The expectation is for
slower global economic growth and yet
even faster inflation – now driven by
higher costs for essential
commodities.
Still the business outlook for the Club
and its members is favourable.
However, what returns to expect from
investment markets has become
increasingly difficult to assess. “Our
future investment choices will be
based on careful evaluation of actual
developments and different scenarios,"
says Kromli.
For now, the long-term strategic
positioning of the Club’s investment
portfolio with 20% equity holdings and
80% interest-bearing assets is
maintained.
The Club's position of having about half
of premium revenue coming from P&I
insurance and the other half from
Marine insurance constitutes a welldiversified risk profile, which enhances
the financial predictability and solvency
position, and adds to the attractiveness
of the Club in the eyes of existing and
prospect members.
The Club has grown attractively in
recent years. “Now, going forward, the
Club will be emphasising price adequacy
over growth. This stance is one of the
outcomes of our continuous risk
management assessments of how to
balance our operational objectives with
our risk appetite.”
The Club’s strong capital base was
essential in handling the volatility of
2021, he adds. “Meanwhile, we are still
expanding geographically with
confidence – for example, with our new
office in Singapore opening in 2022.”
THE SWEDISH CLUB ANNUAL REPORT 2021
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