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TT Club hit by declining premiums, higher claims

TT Club has reported a $US10 million ($13.9 million) decline in gross written premiums to $US172 million ($240 million) for the 12 months to December last year.

Gross paid claims were flat at $US90 million ($125 million) despite a number of claims from the Tianjin port fire.

However, net claims rose from $US76 million ($106 million) in 2014 to $US84 million ($117 million) last year.

Combined with poor investment income – down from $US6.1 million ($8.5 million) in 2014 to $US1.6 million ($2.2 million) – TT Club’s surplus plummeted to $US4.8 million ($6.7 million) from $US14.1 million ($19.7 million) the previous year.

The combined operating ratio deteriorated to 94.4% from 85.6% in 2014.

TT Club Chairman Knud Pontoppidan says claims from Tianjin and a number of major cargo-related fires made an impact but its members were able to handle them.

“Despite the increase in large claims, and the soft rating conditions, the Club continues to be in good shape,” he said.

“The work to improve the health of the insurance book since 2009 has paid off to help to mitigate the increase in large claims in the year.”