TT CLUB SIGNS REINSURANCE PACT WITH SWISS RE
Through Transport Mutual Services (UK) Ltd., widely known as the TT Club, a London-based provider of insurance and risk management services for transport-oriented entities, including ports and terminal operators, has signed a long-term contract with the Swiss Re Group of re-insurers.
“Our five-year, quota-share agreement with a triple-A rated member of Swiss Re will provide additional protection against claims volatility for the foreseeable future,” said Paul Neagle, chief executive of the TT Club.
“We have seen a sharp turnaround in our core business for the first four months of 2002. Premiums earned are up by 34 percent, and claims incurred have fallen by 19 percent compared to the same period in 2001. This indicates that [our] strict underwriting policy is starting to have the desired effect,” Neagle said.
The TT Club posted a deficit of $40.2 million for financial year 2001, and also suffered its second successive year of negative investment returns. “Although the TT Club has not had any direct exposure to the major catastrophes that have occurred during the last year, it has not been immune to the soft industry cycle that has had the effect of reducing rates,” the Club said.
“As a consequence, premiums have been raised and average increases of 40 percent over fourth-quarter 2001 levels have been required in order to restore rating levels,” a Club statement said.
The TT Club’s total assets increased during 2001 by $2.5 million to over $281 million. Gross premiums rose 11 percent to $118.5 million.
“Total surplus and reserves, ignoring any future investment income, remain substantially in excess of the required solvency margin,” the Club reported.