Скачать или смотреть West P&I - Financial Update 2023: Strong progress with a combined ratio of 96.7%

The Club’s operating performance improved significantly compared to the previous 12 months. There were three drivers for this improvement. The first is that the Club had a successful renewal in February 2022 so began the year in a much stronger position than recent years. Rating levels have increased, and the Club’s risk profile has improved.

Secondly, Covid related claims abated which meant that Members’ own claims performance in 2022 was better than forecast despite evidence of inflation impacting claims costs. Back year claims also developed more favourably than expected.

Thirdly, and the most important driver, the cost of IG Pool claims for Policy Year 2022 was far lower than anticipated. Only five claims have been notified to the IG in Policy Year 2022 and West was again fortunate enough to not notify any Pool claims of its own. This had a positive impact on our Pool share and the incurred cost of Pool claims to West was much lower than in recent years. This had a favourable impact on the Club’s operating performance but there was a marked deterioration in the cost of IG claims in prior Policy Years which offset much of this benefit.

The improvement in the Club’s technical performance has resulted in a combined ratio of 96.7%, the best result since 2017.