Annual Review and Accounts

COBRA AS. PHOTO: OLE WALTER JACOBSEN AND GETTY IMAGES. PRINT: NETWORK
www.skuld.com
Annual report 2002
Going the extra mile
Going the extra mile
President and Chief Executive Officer
2002 at a glance
This is Skuld
Management Review
Corporate Governance
Report of the Board of Directors
2
8
10
12
14
20
22
Consolidated income and expenditure account
Balance sheet
Notes
Auditor’s report
Management and Board of Directors
Committee and addresses
26
27
28
35
36
37
...for you
Being where you are
2
According to Captain Sam S. H. Park, President of Seoul based Spark
International, Skuld's correspondent in Korea, quality correspondent service is
characterised by quick on-site response from skilled and experienced representatives
who will do their utmost to protect members' interests. This year Spark International
has been representing Skuld successfully in the 'Neftegaz 67' case, a collision with
a drilling rig off Pusan, Korea.
At Skuld, we focus on meeting the needs of our members.
That includes being present and available where our members
conduct their business. Our basis is a staff of 143 skilled employees.
In addition, with our worldwide network of some 750 correspondents,
we cover the world effectively. As a member, you can always rely on a
Skuld representative to meet and assist any vessel in need, calling at
any port, anywhere in the world.
3
Taking immediate action
4
Jonathan Hare was involved in operating the Claims
Handling Office set up and in operation shortly after
”Braer” grounded off Shetland in 1993 and again
following the Sea Empress incident in Milford Haven
in 1996. He has developed considerable experience
in handling oil pollution claims and is ready to set
up office anywhere in the world if needed.
In your business, time is of the essence. This is never more true than
when incidents or accidents occur. That is why we are always available,
around the clock around the world, ready to take action on your behalf.
As a Skuld member, you can rely on an efficient and timely response,
whatever the situation requires.
5
Defending your interests
6
Many of Skuld’s underwriters and claims handlers have legal skills.
They are assisted by a team of senior marine lawyers, making sure
that members have access to legal expertise in all situations.
Janet Ching is a qualified solicitor with experience from a wide range
of shipping cases, mediation, arbitration and court proceedings.
Janet is part of Skuld’s Defence Services.
Marine insurance matters may be very complex and involve legal
processes pertaining to national or international marine law. As a
Skuld member, you can draw on the services of our experienced
and highly skilled legal teams. Whatever the issue and whoever the
counterpart, you can rely on us to assist in defending your interests.
7
PRESIDENT AND CHIEF EXECUTIVE OFFICER
Going the Extra Mile
Writing this commentary every year is always a challenge.
Remembering what you have said in previous years and
fulfilling predictions and promises is not always that easy.
This year, however, it is an encouraging task. We have
proved to members that Skuld is a top quality P&I club with
an undisputed service and competence level. The necessary
actions taken in the past several years to strengthen and
enhance core activities are starting to pay off in preparing
your club for the future.
I dare say that we now see our efforts materialising in a
highly competent, efficient and user-friendly organisation,
prepared to go the extra mile. This is what makes the real
difference and distinguishes one club from another.
In addition to the daily smooth administration of members’
insurance needs, our purpose is to provide members with
the best possible claims handling, legal advice and emergency
response available. If and when members become involved
in an accident or legal dispute, they know Skuld is there
protecting their balance sheets.
8
Over the past years, and ever since the nineties, we have
covered a number of high profile maritime disasters, either
with major human or environmental casualties. Even though
these accidents were tragic and many lives were lost, we
have learned from them and can use the experience gained
for the future benefit of members and others in similar
situations. Just remember Scandinavian Star, Braer, Estonia
and Sea Empress. The very same people who handled those
cases are still in Skuld with their accumulated knowledge,
ready to serve you whenever necessary. I think it is fair to
say that those examples taught us the very meaning of
“going the extra mile” in achieving something better together
with our members.
Of course, it is not only the really big losses we are trained
to handle. Many thousands of incidents and claims situations
are passed on to our staff every year. In these cases as well,
we must do a top job for members while keeping costs at a
resonable level.
PRESIDENT AND CHIEF EXECUTIVE OFFICER
You should realise that the real value of this knowledge bank
is yours and will be there whenever you need it! We are also
ready to share our experience for the benefit of legislators
and our business associates.
Your club has undergone a tremendous transition from the
new Millennium until today. While writing these comments,
we are now able to see a positive change in the balance
between premiums and claims, as well as promising effects
of our new IT system and improved business procedures. All
of you members of the club who have been loyal to our long
term strategy to transform Assuranceforeningen Skuld into a
modern vehicle to deal with shipowners’ liabilities and other
related matters, should be able to look forward to a long
term sustainable level of financial balance in Skuld. Patience
is finally paying off!
In the following sections, you will find detailed information
on the fiscal year 2002 which I think you will find interesting
reading. Even though the bottom line results are disappointing,
they are only a reflection of the past. They are primarily
attributable to an increase in claims payments and reserves
for former members, as well as bad debts written off for
insolvent former members. Both of these should be seen as
one off situations.
In order to restore the association’s reserves, the Committee
and the Board approved the Management’s suggestion to
utilise a bridging financial facility of similar nature to other
Alternative Risk Transfer Solutions provided in the market.
After carrying this out, free reserves will stand at just over
USD 75 mill or USD 2.85 per GT.
Douglas Jacobsohn
President & CEO
9
2002 AT A GLANCE
100
80
60
Skuld highlights
• Rate increases continued for the 2003 renewals, with
average increases for members of 25% and stable
volume
40
20
0
1998
1999
2000
2001
2002
Skuld Contingency reserves
per year (USD mill)
• Moved to better and more efficient office premises
in Oslo
• More than 30 countries represented at Skuld School
• Gross claims decreased from USD 114.4 mill to 96.8
mill
• Renewal documentation sent to members in record
time thanks to new IT system beginning to pay off
• Upgraded to ISO 9001:2000 quality standard, now
also including Hong Kong and Piraeus offices
150
120
90
60
30
0
1998
1999
2000
2001
2002
Skuld Premium and calls for
own account (USD mill)
Industry highlights
• Several incidents hit the industry in the fourth
quarter causing increased losses
20
15
• Group reinsurance renewed at about 40% price
increase
10
• War risk cover expanded to USD 400 mill
• US authorities imposed new anti-terrorism legislation,
Terrorism Risk Insurance Act (TRIA) which effects the
industry
• New protocol to Athens convention adopted by IMO
• International Group agreed to share claims information
on claims above USD 100 000
• High incoming pool claims
10
5
0
1998
1999
2000
2001
2002
Skuld Administrative expenses
(USD mill)
2002 AT A GLANCE
Five-year financial summary
Amounts in 1.000 USD
Premiums and calls for own account 1)
Claims incurred for own account
Gross investment revenue 2)
Balance carried to contingency reserve
Contingency reserve 3)
1998
116 594
113 878
28 388
2 324
79 615
1)
In the original accounts for 1997 to 1999, Skuld's share of
other clubs' Pool claims was included in reinsurance costs.
In this statement, these amounts have been included in
incurred claims to comply with the 2001 accounts. The 1999
figures include unbudgeted calls of 10% for 1998 and 1999,
while the 2001 figures include unbudgeted calls of 15% and
45% for 1999 and 2000 respectively.
1999
125 358
124 959
23 783
-8 461
87 689
2000
89 099
96 400
18 378
-17 603
70 151
2001
121 082
114 410
21 795
3 337
77 873
2002
90 679
96 835
1 748
-28 602
50 080
2)
Including sale of real estate in Oslo in 2001, generating
a profit of approx. USD 12.7 mill.
3)
In 1999, accounting principles were changed to include
investments at market value, resulting in an increase in
contingency reserve despite a negative balance from the
income and expenditure account.
The business year
The underlying business improved significantly during
2002 due to higher premiums and lower club claims.
Nevertheless, the club posted a negative result of USD
28.6 mill, which were deducted from the contingency
reserves.
This unsatisfactory result is a consequence of several
negative factors throughout 2002. Several of the club’s
members with outstanding premiums turned out to be
insolvent and bad debt had to be written off. The equity
market dropped significantly for the third year in a
row. Although the association made a small return
on investments, it was not sufficient to support the
business. A large cruise member experienced increases
in claims due to massive law suits. Existing and new
claims reserves for this member had to be adjusted,
and thus contributed to a larger loss. Incoming pool
claims for 2002 increased dramatically compared to
2001, and Skuld had to pay and reserve for its share of
these claims. Although the underlying claims trend for
the remaining book of business is positive, provisions
for incurred but not reported (IBNR) claims have been
held constant in order to secure the future results
against any further negative development.
As a consequence of strengthened NOK and DKK relative
to USD, the shift from an owned office building to a leased
building and the depreciation of the IT systems, the
administration expenses increased by some USD 3 mill.
Despite a loss of 18% in equities, the bond portfolio and
Skuld’s currency hedge secured an overall profit of 1%
corresponding to a USD 2.1 mill investment profit.
11
THIS IS SKULD
Assuranceforeningen Skuld is a leading marine insurer that provides Protection
and Indemnity (P&I), Energy and Defence cover to shipowners and charterers
all over the world. The purpose of the association is “mutual insurance against
liabilities and losses incurred by members in direct connection with the
operation of the entered vessels”.
President and CEO
Douglas Jacobsohn
HRM & Off. Adm.
Ellen Haugom
Chief Financial Officer
Svein Sollund
General Counsel
Eric Jacobs
Defence Services &
Emergency Response
Arthur Pilkington
Chief Operating Officer
Tor Erik Andreassen
Claims & Technical
Services
Dan Lennhammer
Marketing &
Communication
Eric Jacobs
Oslo Syndicate 1
Lars Dueled
Copenhagen
Syndicate 1
Anders Ulrik
Hong Kong
Syndicate
Patrick Wang
Oslo Syndicate 2
Claes Westman
Copenhagen
Syndicate 2
Jan Katkjær
Pireus Syndicate
Lily Karaiscos-Samellas
Oslo Syndicate 4
Egil Gulbrandsen
Bergen Syndicate
Bjørn Flåm
Energy Syndicate
Powan Li
As a mutual association, the club is owned and controlled directly by its members. Established in 1897 in
Oslo, Norway, some 50% of the tonnage entered in the
association continues to be Scandinavian-controlled,
reflecting the club’s traditional balance between
Scandinavian and non-Scandinavian business. Its other
12
big markets are most Western European countries in
addition to Russia, Singapore, China including Hong
Kong and the United States. With its established and
strong position in "mature" markets such as Norway
and Denmark, the largest growth potential is currently
perceived to be in Greece and Asia.
THIS IS SKULD
SKULD OFFICES
CORRESPONDENTS
(A total of more than 750 worldwide)
In addition to its head office in Oslo, Skuld has offices
in Copenhagen, Bergen, Piraeus and Hong Kong.
A competent staff of 143 skilled employees worldwide
and an extensive network of correspondents, makes
Skuld a competitive service provider who will always
go the extra mile for members.
Skuld is one of thirteen members of the International
Group of P&I Associations that work closely together
in reinsurance and industry matters of common interest.
The International Group insures approximately 90% of
the world’s merchant fleet.
13
MANAGEMENT REVIEW
Consolidation in a challenging year
In a year characterised by several serious accidents, limited growth
opportunities and a generally hardening market, Skuld improved the
efficiency of its operation and saw clear signs of improvement in its
underlying business towards the end of the year.
General
The operation of Skuld during 2002 was
characterised by consolidation. There
was reduced business volume at the
outset of the year compared to the
previous year. This in combination with
organic growth by existing members
and a good outcome for the 2003
renewals, contributed to a further
stabilisation of Skuld’s operation.
for the 2003/04 renewals. Skuld was
among the eleven of thirteen P&I clubs
that set a general increase of 25%.
The increase was applied with some
discretion for members with an appropriate rating and good loss statistics,
whereas underpriced accounts or those
showing negative performance had to
face increases beyond the mentioned
general 25% level.
Business volume and renewal
During the course of the 2002 policy
year, the volume of owners’ business
was reduced by 1.3 million GT. This
reduction was primarily attributable to
sale of vessels entered by our members.
The volume of charterer’s business was
comparable to or slightly above the
previous year. On the energy side, we
saw several drilling units move into
lay-up, in line with deteriorating market
conditions. At the same time, business
with Floating Production Storage &
Offloading units (FPSOs) and similar
units expanded somewhat.
Consistent with a hardening market,
the association set stringent guidelines
14
Although some tonnage was lost during
renewals, a corresponding volume was
added to the association’s book of
owner’s business, making the net
reduction only some 200 000 GT, or less
than one percent.
In summary, the achieved increase on
owners’ business exceeded our objectives.
Charterers liability insurance saw an
increase of 14%, while reducing the
volume by some 10%.
Operations
The recent investments and change of
IT systems has significantly rationalised
and simplified the documentation
process to complete annual renewals.
For the first time, issuing policies and
invoices to all members was reduced
to a few weeks compared to a
corresponding number of months
previously.
Looking ahead, we see clear signs
that implementing our new business
system, TIA, substantially increase
our efficiency in daily claims handling.
In addition we will be able to provide
much more sophisticated internal and
external claims information. During
the last six months of 2002, we saw
a considerable drop in the number of
outstanding open claims, largely due
to the efficiency of the system. Several
manual and time consuming claims
routines have disappeared and this
enables much better and costeffective claims handling.
The Data Warehouse system extracts
and accumulates the above mentioned
information. It can generate tailormade
claims reports based on information
entered into TIA. The current reports
are used in the daily claims control
MANAGEMENT REVIEW
Consistent with a hardening
market, Skuld set stringent
goals for the 2003/04
renewals, being among
the eleven of thirteen P&I
clubs that set a general
increase of 25%.
and are proving to be very effective
management tools. The next step in the
Data Warehouse process is to provide
members with reports regarding their
specific claims portfolio. These tools
will be vital in our efforts in the loss
prevention field in the years to come.
In summary, the first year of our new IT
system has led to cost-savings through
increased efficiency, but we also expect
to see significant improvements in the
coming years, both with respect to
cost-savings and improved claims
service to members.
Claims
Marine underwriters in general will
look back upon the 2002 policy year
with grief and horror, especially in the
Hull & Machinery sector. In particular,
the fourth quarter of the calendar
year involved a series of major
accidents attracting high media
attention world-wide. None of the
vessels involved in these events were
entered with Skuld. Despite avoiding
direct costs, the association will
nevertheless contribute to the
compensation for several of these
events via the International Group
Pooling Agreement.
Partly due to sums involved for the
accidents mentioned above, the
association’s costs relating to Incoming
Pool Claims (IPC) for 2002 will most
likely be the highest ever since Skuld
joined the International Group. In total
we have paid and reserved USD 14.9
million to cover IPC for this policy year.
The impact of IPC on the accounting
year is partly balanced due to reserves
for earlier policy years being somewhat
reduced. In sum, the total cost for IPC
on the accounting year is USD 11.8
million, which should be considered
high in relation to Skuld’s current share
of the Pool.
It is, however, important to remember
that IPC by nature are volatile, given the
value range of claims covered by the
pooling arrangement. The randomness
of the occurrence of accidents implies
considerable variations from year
to year. The pooling arrangement is
still considered the least expensive
reinsurance solution available.
As pointed out elsewhere in this Annual
report (pages 9 and 23), a substantial part
of the association’s negative 2002 results
is related to the claims development of
one US based cruise operator not
15
MANAGEMENT REVIEW
Claims per GT
4,0
3,5
3,0
2,5
2,0
1,5
95
96
97
98
99
00
01
02
03
Claim/GT
Premium/GT
renewed. The total sum of compensation
and increased reserves on open cases for
this ex-member affecting the 2002
accounting year, amounts to USD 17.3
million. These costs represent 22% of
total claims costs for own account in the
accounting year 2002.
The mentioned amount is a result of
the following factors:
• Increased frequency of reported
claims
• Jury decisions on claims ending in
court with settlements for amounts
way above any estimates made by
experts and lawyers
• The above mentioned court cases
necessitated a comprehensive
internal review of all open cases.
The reserves on some cases were
accordingly increased
The results on the above account
strongly justify the association’s
decisions to discontinue the underwriting of US based cruise business in
general and not to renew the account
referred to above in particular.
16
The club’s expenditures for legal fees
did not develop as planned and are still
at an unacceptable level. In order to get
better control over our external legal
costs, stricter cost-control has been
implemented and we expect to see
improved results during the accounting
year 2003.
Looking ahead, we see
clear signs that our new IT
systems will substantially
increase our efficiency in
daily claims handling and
provide much more detailed
claims information.
The total claims cost per policy year
divided by the applicable tonnage is
illustrated by the light green line in the
graph above. The decreasing claims
trend over the past five years is positive,
and has in particular been reduced
considerably over the past three years.
From 1999 to 2002, claims costs per GT
decreased by 23%.
The red line in the graph above
illustrates the premium per GT per
policy year. The premium excludes
unbudgeted supplementary calls
and market reinsurance premiums.
The graph illustrates the increasing
premium to claims margin since the
margin was negative. The development
is a very strong indicator of the club’s
recovery. Assuming other factors being
equal, the average premium level in
2003 is now comparable to that of 1997.
In summary, from a claims perspective
the year 2002 has developed better than
our prognosis. The main explanation is
that we now see the effects of the
MANAGEMENT REVIEW
improved member structure that we
have achieved over the past few years.
Adjusting the management structure
In line with an aspiration of being a
dynamic organisation and a willingness
to change, Skuld’s management structure has been adjusted in several areas
in the course of the last year.
Firstly, a separate Defence unit has
been established to bring together the
best in-house resources on defence
matters. Working together as one
business unit, these unified resources
will be able to provide the various
syndicates and their respective
members with the very best advice
and counselling on legal matters.
Secondly, to adjust to the volume of
business in the related markets, two
of the syndicates in Oslo have been
merged into one. This change enables
a streamlining of the syndicates’
geographical boundaries and, more
importantly, ensures a more flexible
and efficient use of in-house resources.
Finally, management of all the syndicates
is now the responsibility of one person,
Skuld´s Chief Operating Officer, thus
ensuring clearer lines of responsibility
and better communication lines in the
organisation.
In sum, the above mentioned steps may
seem small, but are important in our
efforts to go the extra mile for members,
providing excellent service and products
at the lowest possible cost.
530 mill (USD 500 xs. 30 mill). The latter
is partially protected by reinsurance.
When a club experiences a claim which
is expected to exceed USD 5 mill, the
International Group is notified, and as
payments are made after the initial
USD 5 mill, the costs are shared
between the clubs. The costs are split
Reinsurance
The Pooling agreement
One of the most important functions of
the International Group of P&I Clubs is
the pooling of risks and the Group´s
purchase of reinsurance. No club has
the financial strength to carry the
significant risks of P&I alone, but by
combining the strength of all the clubs,
the Group is able to summon sufficient
resources to offer an affordable and
well funded product.
The pooling consists of two parts;
claims between USD 5 and 30 mill
(expressed as USD 25 xs. 5 mill) and
25% of all claims between USD 30 and
In order to get better
control over expenditures
for external legal fees,
stricter cost control has
been implemented and
we expect to see improved
results during the
accounting year 2003.
17
MANAGEMENT REVIEW
Skuld payments and refunds from the Pool per annum
30
25
20
15
10
5
0
-5
-10
-15
-20
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
00
01
02
Received from pool
Paid to pool
IBNR
based on a formula where previous
claims, gross tonnage and premium
are important factors.
The Group´s reinsurance programme,
normally referred to as “market reinsurance”, provides cover between USD
30 mill and USD 2 bill, split in various
layers. In addition, protection is bought
for specific risks such as war risk and
US Voyage. For 2003, total market
reinsurance costs exceed USD 200 mill.
Although the market reinsurance has
proven to be efficient for the reinsurance
industry, the prices have increased
significantly over the last two years.
For the 2003 renewal alone, the average
price increase was 38%. These costs
are shared between the clubs and
ultimately by members by means of
a formula fairly similar to the one used
to share the claims.
As can be seen from the graph above,
2002 was a bad year for the Pool, with
claims such as Prestige, Hual Europe
and Tricolor. The latest years are not
fully developed yet, and all clubs add
a significant portion of IBNR (incurred
18
A separate Defence unit
has been established to
bring together the best
in-house resources and
provide members with
professional advice on
defence matters.
reduced business volume and less
claims. Other clubs’ large claims in
2002 contributed, however, to a large
deterioration in the association’s
earnings. Including IBNR, other clubs’
Pool claims are estimated to have cost
Skuld some USD 15 mill in 2002.
In total, over the last 18 years, Skuld’s
net position relative to the Pool is neutral.
The later years are expected to have
a further negative development and
Skuld does not have any recent claims
in the Pool. When these policy years
have fully matured, we therefore expect
to have contributed USD 5-10 mill to
the Pool.
Reinsuring own retention
but not reported claims) to these
figures. However, 2001 seems to have
been a very good year, so far.
Skuld
Skuld’s share of Pool claims has been
reduced over the last years, due to
Pooling and market reinsurance
represent good cover for risks in excess
of USD 5 mill. There are, however,
significant fluctuations below this level
and also for the payments Skuld has to
make to other clubs’ pooled claims.
Reinsuring these risks is expensive,
and the level of reinsurance must be
optimised. We have therefore developed
tools in order to evaluate the necessity
MANAGEMENT REVIEW
and prices of various reinsurance
set-ups. As a result, the reinsurance
protection of risks below USD 3 mill
has been omitted for 2003 and the rest
of the programme optimised.
These changes, in addition to renegotiated
reinsurance prices, are expected to
increase the club’s results by USD 2-4
mill in 2003.
Personnel
The management of Assuranceforeningen
Skuld recognises the importance of
motivating all employees through
competence building, constructive
feedback on work done, and maintaining
and developing a positive working
environment enabling staff to cope
with changes.
The association acknowledges its responsibility
for applying environmentfriendly practices and
procedures.
The working environment is considered
to be good and management places
emphasis on education and training of
staff as a strategy for meeting the
demands and challenges of our
members.
Environmental status
The association acknowledges its
responsibility for applying environmentfriendly practices and procedures.
Current status in terms of some
key environmental parameters is as
follows:
• Sick leave in the period totalled
4.34% which is down from previous
years
• No absence was ascribed to injuries
caused at work
The main features of the association’s
environmental programme are:
• The head office heating system is
sourced on electricity plants fuelled
by waste materials
• Used paper and obsolete batteries,
computers, printers and other office
equipment are returned for recycling,
whenever possible
• Video conference equipment has
been in use for several years,
enabling a reduction in the amount
of travel
• Purchase and use of goods and
services shall reflect sound environmental principles
19
CORPORATE GOVERNANCE
Corporate Governance on the agenda
For companies today good corporate governance
is becoming increasingly important. This is also the
case in Skuld. The association’s owners and members
demand – and have a right to expect – good corporate
governance.
In 2002 Skuld has focused on developing separate and
more detailed guidelines covering the responsibilities
of the Board of Directors, it’s Chairman and the
President & CEO. “Skuld Corporate Guidelines”, were
approved by the Board of Directors in March 2003.
A focus on corporate governance is nothing new to
Skuld. The association has always had a tradition of
high governing standards, as shown in “Statutes and
Rules” published annually and available on Skuld’s
website. The statutes set out the structure and roles
of the governing bodies, how they are elected and their
mandates.
The aim is independence and control in governing
Skuld, while at the same time making sure that there
are equal terms for equal members.
Election Committee
ANNUAL
GENERAL MEETING
Control Committee
COMMITTEE
BOARD OF DIRECTORS
President & CEO
Assuranceforeningen
Skuld (Gjensidig)
20
Auditor
CORPORATE GOVERNANCE
The General Meeting
The General Meeting is Skuld’s highest authority where
all members have a right to attend. The number of
votes is distributed according to each member’s gross
tonnage entered in the association. The ordinary general
meeting takes place annually in August/September.
The General Meeting makes decisions in matters within
its authority and elects the members of the Board of
Directors, the Committee, the Election Committee and
the Control Committee.
The Committee
The Committee consists of representatives from
10-30 members, all elected by the General Meeting.
The Committee supervises Skuld’s business, elects
Skuld’s Auditors and makes decisions regarding
insurance conditions and premiums.
The Board shall at all times follow the responsibilities
and tasks laid down in Skuld’s statutes, and the
association shall be managed in accordance with
the Norwegian Insurance Activities Act. The separate
corporate guidelines adopted in March 2003 give
detailed information as to responsibilities, structure
of meetings, rules applying to quorum etc.
During a year the Board meeting agendas will include
items such as Skuld’s strategy plan, annual budget and
premiums, any changes to statutes or rules, International
Group Association (IGA) issues, reinsurance contracts
and internal control procedures.
All Board members have the same rights and obligations
and as Board members shall have the interest of the
association first in mind.
The Board of Directors
Members of the Board of Directors are elected independently among Skuld members, following recommendations made by Skuld’s Election Committee.
New board members are formally elected by the
General Meeting.
The Chairman of the Board
The Chairman of the Board’s powers of attorney are set
out in the association’s Statutes and/or are decided by
the Board. The Chairman of the Board’s responsibilities
are listed in Skuld’s Corporate Guidelines.
The CEO
The President and CEO is responsible for the day-to-day
management of the association and shall communicate
with the Board in matters of an unusual nature or of
great importance to Skuld. The CEO’s responsibilities
are based on Skuld’s Corporate Guidelines.
The CEO shall ensure the association’s compliance with
all applicable legislation and the adherence to the code
of conduct of the association, i.e. “Ethical Guidelines”.
While stating the obligation of confidentiality, the
Guidelines for the Board of Directors also focus on the
responsibility for information related to Board matters.
This responsibility rests with the Chairman of the Board
and CEO. Skuld aims at open and transparent communication with members, employees and other stakeholders.
The 2002 half year report, the first in Skuld’s history,
was an example of this new trend.
21
The year 2002 was yet another difficult year for
maritime insurers. Slow global growth, combined
with poor equity markets and increased loss provisions for older claims contributed to weak results.
Furthermore, the last quarter of the calendar year
entailed a series of major marine casualties, some
with a high media profile, affecting the results of
P&I clubs as well as Hull and Machinery underwriters. As a result, many insurance companies’
free reserves have decreased substantially.
REPORT OF THE BOARD OF DIRECTORS
A strong focus on strengthening core business
The year 2002 was yet another difficult year for maritime insurers. Slow global growth, combined
with poor equity markets and increased loss provisions for older claims contributed to weak results.
Furthermore, the last quarter of the calendar year entailed a series of major marine casualties, some
with a high media profile, affecting the results of P&I clubs as well as Hull and Machinery underwriters.
As a result, many insurance companies’ free reserves have decreased substantially.
The poor international investment market combined with a strong Norwegian currency and a reduction
in the association’s volume have had a significant negative impact on the results of the association’s
106th year of business. There are, however, clear indications that the underlying business (claims versus
premium income) is improving due to the combined effects of achieved premium increases and selection
of tonnage with good loss records.
Consolidation
Following a period of change and restructuring, the association has focused on consolidation and improving
core business processes. The Board is of the opinion that managing the association’s overall risk in a better
way has top priority. High focus has been given to enterprise risk management and a further redefining
and fine tuning of our systems for risk selection and pricing. Making sure that the association has the
right selection of membership is important, but only to the extent that the right price for these risks can
be obtained.
The policy year
The accounting year has developed more negatively than expected, and the net financial result was a
loss of USD 28.6 mill, which in its entirety will be covered by the association’s contingency reserves. The
negative results are to a large extent due to extraordinary one-time events, which should be looked upon
in isolation from the ordinary premium and claims situation. Due to improved information during the
year, the association has found it necessary to increase claims provisions considerably for one ex-member
due to a potential increase in liability in connection with US personal injury cases. The increase in claims
provisions for this ex-member stands for more than half of the negative results. Furthermore, the association
has found it necessary to write off a considerable amount of total accounts receivable, due to insolvency
and payment difficulties for several members who have left the association. In addition, due to an
increase in other clubs’ large claims, the ultimate projection of incoming pool claims doubled compared
to the previous year. Combined, these three extraordinary events stand for almost the entire negative
result of the association.
23
REPORT OF THE BOARD OF DIRECTORS
Despite the negative results, the Board is also confident that the underlying business is showing healthy
signs of improvement where incoming premiums cover incoming claims and administration costs.
At the end of 2002, the association’s free reserves will be reduced to USD 50 mill. This is about 10%
below the stringent minimum reserve requirement adopted by the Norwegian Banking, Securities and
Insurance commission (“Kredittilsynet”). Therefore, in agreement with the Commission, the association
has sent an application for temporary exemption of the requirement until the end of the policy year 2003
(Please see footnote). It is, however, important to note that the association’s free reserves still are twice
the minimum requirement set by the EU, which most of the International Group clubs are governed by.
The Board has noted with satisfaction that the renewal, which ended on the 20 February 2003, resulted
in a general increase of slightly over 25% for Owners’ tonnage and about 14% for Charterers’ accounts.
At renewal, the members’ payment history and solvency have also been taken into account. This, in
combination with improved invoicing routines, will ensure timely payment and significantly reduced
losses on outstandings. The Board is therefore of the opinion that the policy year 2003/2004 will be
closed with positive results. Hence, one will be able to increase the association’s free reserves in the
course of policy year 2003.
The 2001 policy year will be kept open until full information of the year is available.
Return on investments
Return on financial investments has been poor for the third consecutive year, as a result of continued
fall in international equities. However, as in previous years, the bond markets have performed well.
The Board has noted with satisfaction that the conservative investment policy once again has provided
the association with an overall positive return on investments in these difficult markets. The overall
financial return ended at 0.95% measured in USD.
Reinsurance
The trend of increasing reinsurance premiums has continued. The association has therefore used considerable
time and effort analysing the reinsurance needs and the composition of its various contracts. An advanced
stochastic model was built to assist in the evaluation process and choice of new covers and structures.
The Board therefore notes with satisfaction that the association has modified and renewed its reinsurance
programme with Swiss Re on favourable terms
Personnel and environment
In December 2002 the association moved it’s head office from Roald Amundsens gate 6 in Oslo which
had been the head quarters since 1932 to Ruseløkkvn. 26, Oslo. In the new headquarters all employees
are placed on one floor in new and modern premises. Besides improving the working environment, the
move ensured a significantly lower lease, compared to the lease on the old premises.
* On 4 July the Norwegian Ministry of Finance granted Skuld a temporary exemption of the
requirement until the end of the policy year 2003.
24
REPORT OF THE BOARD OF DIRECTORS
At year-end there were 143 staff members fully employed by the association. The association seeks
to uphold good working conditions with good internal communication, leading to improved efficiency.
The association is unaware of any activity affecting the external environment. For details of the club’s
environmental programme, see page 19 of the Management review.
The Board of Directors herewith presents the association’s Annual Report and Accounts for 2002, which
is the associations 106th year of business. The consolidated accounts include the association’s subsidiaries
APS Generalagenturet for Skuld, Copenhagen; Skuld AB and Skuld AB (New), Stockholm; Skuld (Far East)
Ltd., Hong Kong; Skuld Bergen AS; Skuld Hellas Ltd., Piraeus and the wholly owned reinsurance companies
Skuld Re SA, Skuld Re II SA and Alvema SA, Luxembourg.
The consolidated accounts also include the association’s affiliated club in Bermuda, Skuld Mutual P&I
Association (Bermuda) Ltd., Hamilton. In accordance with the two associations’ bye-laws, their members
enjoy joint membership in both associations, which act as co-insurers on a joint basis with equal insurance
conditions and bye-laws. The association participates on a joint basis in the International Group of P&I
Associations’ pooling arrangements and excess loss reinsurance contracts entered via the pool. The accounts
are consolidated and the Bermuda Association is subject to Bermuda supervision and reporting.
Oslo, 14 May 2003
Helfried Beuther
Chairman
Nils Aardal
Vice Chairman
Terje Adolfsen
Arne Birkeland
Tom E. Jebsen
Ulf G. Ryder
John P. Tavlarios
Peter Wilsund
Douglas Jacobsohn
President & CEO
Veli-Matti Ropponen
25
CONSOLIDATED INCOME AND EXPENDITURE ACCOUNT
All figures in USD 1 000
Note
2002
2001
2
113 303
-22 624
90 679
141 557
-20 475
121 082
3
3
112
-18
-11
14
96
162
-25
-24
1
114
TECHNICAL ACCOUNT
PREMIUMS AND CALLS
Gross premiums and calls
- Reinsurance premium
Earned premiums and calls for own account
CLAIMS INCURRED
Gross claims paid
- Reinsurance recoveries
Gross change in estimated outstanding claims
- Reinsurers share
Claims incurred for own account
OPERATING EXPENSES
Acquisition costs
Administrative expenses
Net operating expenses
Balance carried to non-technical account
3
4
4
004
218
609
658
835
883
917
287
731
410
10 379
14 050
24 430
11 362
10 922
22 283
-30 585
-15 612
-30 585
-15 612
NON-TECHNICAL ACCOUNT
Balance from technical account
INVESTMENT INCOME
Investment income
Unrealised gains
Realised gains/loss on investments
Gain sale real estate
Total investment income
11 364
-4 417
-8 695
0
-1 748
INVESTMENT EXPENSES
Investment management expenses
896
796
4 726
-2 064
-28 503
3 323
100
-13
-28 602
3 337
FOREIGN EXCHANGE ADJUSTMENTS
Foreign exchange adjustments
Balance before tax on ordinary activities
TAXES
Taxes
Balance carried to contingency reserve
26
13
-9
5
12
21
971
918
011
731
795
BALANCE SHEET AT 20.02.03
All figures in USD 1 000
Note
2002
2001
339
5 565
807
72 636
215 564
294 911
144
3 943
849
69 344
233 912
308 193
12 180
1 481
910
14 571
30 206
0
3 326
33 531
7
2
30
40
7
1
59
69
ASSETS
FINANCIAL ASSETS
Real estate
Mortgages
Other loans
Shares
Bonds
Total financial assets
6
6
DEBTORS
Members and brokers
Reinsurers
Other debtors
Total debtors
7
OTHER ASSETS
Fixed assets
Pension assets
Cash at bank
Total other assets
5
PREPAYMENTS AND ACCRUED INCOME
Prepayments and accrued income
Total assets
8
370
527
995
892
933
888
696
517
3 120
353 493
2 961
414 202
377
-84
292
50
342
385
-99
285
77
363
LIABILITIES
TECHNICAL PROVISIONS
Gross provision for outstanding claims
Reinsurer's share
Provisions for outstanding claims for own account
Contingency reserve
Technical provisions for own account
10
10
9
10, 11
401
978
424
080
504
PROVISIONS FOR OTHER LIABILITIES
Pension liabilities
Provision for taxation
Total provisions for other liabilities
4 576
33
4 610
CREDITORS
Members and brokers
Reinsurers
Other creditors
Total creditors
2
1
2
5
ACCRUALS AND DEFERRED INCOME
Accruals and deferred income
12
Total liabilities
255
884
371
873
244
3 962
38
4 000
317
118
142
578
4
5
2
13
965
894
512
371
802
33 586
353 493
414 202
Oslo, 14 May 2003
Helfried Beutner
Chairman
Nils Aardal
Vice Chairman
John P. Tavlarios
Terje Adolfsen
Peter Wilsund
Tom E. Jebsen
Arne Birkeland
Ulf G. Ryder
Veli-Matti Ropponen
Douglas Jacobsohn
President & CEO
27
NOTES
All figures in USD 1 000
Note 1 Accounting Policy
The accounts are prepared in USD, but in the official accounts for Skuld USD have been converted to NOK and
Norwegian language has been used.
Furthermore, the accounts have been prepared in compliance with the new regulations from the Norwegian
Banking, Security and Insurance Commission. These new regulations are based on EU accounting standards.
The USD accounts are based on the official accounts, but some reclassifications have been made to make the
accounts more comparable to the accounts of the other P&I clubs.
• Provisions for bad and doubtful debts are included in calls and premiums.
• Interest on overdue payments is included in calls and premiums
• Claims management expenses are included in claims incurred.
There are also some deviations from the official accounts in the Notes.
BASIS OF ACCOUNTING
The accounts are prepared on an annual accounting basis and include the following:
•
•
•
•
All premiums for policies commencing during the year.
The cost of claims incurred and reinsurance for the current year.
Any adjustments relating to earlier years.
Operating expenses and investment income.
CONSOLIDATION
The consolidated accounts include the accounts for Skuld Mutual Protection & Indemnity Association (Bermuda)
Ltd., and the association’s subsidiaries, Skuld AB, Skuld International Bermuda Ltd., Skuld Bergen AS, Skuld Far
East Ltd., Skuld Hellas Ltd., Skuld Re SA, Skuld Re II SA, Alvema SA and APS Generalagenturet for Skuld,
Copenhagen. In the accounts, shares in subsidiaries, receivables from and payables to subsidiaries, and
transactions between the association and the subsidiaries, have been eliminated.
CALLS AND PREMIUMS
Calls and premiums include gross calls and supplementary calls, less return premiums and provisions for bad and
doubtful debts. These calls and premiums are the total receivable for the whole period of cover provided by the
contracts commencing during the accounting period, together with any premium adjustments relating to prior
accounting years. The calls and premiums include provisions for estimated future supplementary calls in respect
of open policy years.
CLAIMS
The claims expenses include all claims incurred during the year together with claims management expenses.
The technical provision for claims outstanding includes an element of claims incurred but not reported (IBNR).
Historical data is used in assessing IBNR. Provision for the cost of claims handling is not included.
REINSURANCE PREMIUMS
These include premiums payable to market underwriters, charged to the consolidated income and expenditure
account on an accruals basis.
REINSURANCE RECOVERIES
Reinsurance recoveries are accrued to match relevant claims, and include estimated recoveries on estimated
outstanding claims.
OPERATING EXPENSES
Account is taken of accruals and prepayments in arriving at operating expenses.
FOREIGN CURRENCY
Assets and liabilities have been translated to USD at the rate of exchange on the balance sheet date.
INVESTMENTS
Account is taken of accrued interest on fixed interest securities and deposits; dividends are credited when
receivable. The investments are assessed at market value on the balance sheet date.
28
NOTES
All figures in USD 1 000
Note 2 Premiums distributed by country
Country
Premiums
Norway
Nordic countries excl. Norway
Greece
Rest of Europe
USA
Far East
Other
Total gross premiums and calls
27
16
7
35
11
9
5
113
270
604
145
645
410
964
264
303
%
24.1%
14.7%
6.3%
31.5%
10.1%
8.8%
4.6%
100.0%
Note 3 Net claims incurred
2002
GROSS CLAIM PAID
Members' claims
Group Pooling arrangements
102 959
9 045
112 004
REINSURERS' SHARE
Group Pooling arrangements
Market underwriters
Other P&I associations
10 861
7 211
146
18 218
Net claims paid
93 786
CHANGE IN PROVISION FOR GROSS CLAIMS
Provision carried forward
Provision brought forward
Change in currency valuation at year end
LESS MOVEMENTS IN PROVISION FOR REINSURERS'
Provision carried forward
Provision brought forward
Change in currency valuation at year end
377
-385
-3
-11
401
255
755
609
SHARE
-84 978
99 884
-249
14 658
CHANGE IN PROVISION FOR FUTURE CLAIMS
Net change in claims provision
3 049
Claims incurred, for own account
96 835
Note 4 Net operating expenses
2002
2001
Administrative expenses
14 050
10 922
Salary, etc.
Commissions
Other acquisition costs
Acquisition costs
3 746
5 794
840
10 379
3 984
6 496
882
11 362
Net operating expenses
24 430
22 283
In accordance with Schedule 3 of the International Group Agreement, the association is required to disclose the
Average Expense Ratio for the association's P&I business.
The operating expenses include all expenditure incurred in operating the association's P&I business, excluding
expenditure dealing with claims and a reasonable allocation of general overhead expenses. The premium
includes all earned premium allocated to the policy year of origin.
For the five years ended 20th February 2003, a ratio of 11.6% (10.5% at 20th February 2002) has been calculated
in accordance with the Schedule and the guidelines issued by the International Group and is consistent with the
relevant Financial Statements.
29
NOTES
All figures in USD 1 000
Note 5 Fixed assets
Fixed assets
COST
As at 20th February 2002
Purchases in the year
Sales / scrapping in the year
As at 20th February 2003
14 604
804
-5 046
10 362
DEPRECIATION
As at 20th February 2002
Depreciation on sold / scrapped assets
Depreciation this year
As at 20th February 2003
6
-4
1
2
NET BOOK VALUE
As at 20th February 2002
As at 20th February 2003
620
947
319
992
7 933
7 370
Note 6 Financial investments
SHARES:
Norwegian shares
Foreign shares
Total shares
BONDS:
Treasuries
Asset Backed Securities
Mortgage Backed Securities
Corporate Securities
Government Agency Securities
Cash and Money Market
Eurobonds
Total bonds
2002
Market value
2001
Market value
127
72 509
72 636
140
69 203
69 344
78
20
48
54
6
7
267
631
264
670
465
266
0
215 564
30
23
67
48
3
25
36
233
185
635
247
578
008
000
259
912
Note 7 Reinsurance debtors
Other associations' relating to Pooling agreements
Other reinsurance arrangements
Total reinsurance debtors
2002
2001
326
1 155
1 481
0
0
0
2002
2001
1 392
1 727
3 120
1 636
1 325
2 961
2002
2001
Note 8 Prepayments and accrued income
Accrued interest
Other prepayments
Prepayments and accrued income
Note 9 Contingency reserve
Contingency reserve as per 20.02.2002
Balance carried forward to contingency reserve
Difference related to subsidiaries
Contingency reserve as per 20.02.2003
30
Required Solvency margin
Contingency reserve in per cent of required solvency margin
77 873
-28 602
809
50 080
55 400
90.4%
70
3
4
77
151
337
386
873
59 000
132.0%
NOTES
All figures in USD 1 000
At year end the contingency reserve is USD 5.3 mill under the requirement. In agreement with the Bank,
Securities and Insurance Commission, the association has therefore sent an application for temporary exemption
of the requirement until the end of the policy year 2003. (Please note that on 4 July the Norwegian Ministry of
Finance granted the association a temporary exemption of the requirement until the end of the policy year 2003.)
Note 10 Provisions for outstanding claims by Policy year
Gross estimated outstanding including IBNR
The association's estimated share of other
associations' pool-claims including IBNR
Gross provision for outstanding claims
Estimated outstanding recoveries from:
Pooling agreements
Group excess loss
Other reinsurers' share
Total estimated outstanding recoveries
Provisions for outstanding claims for own account
Contingency reserve
Technical provisions for own account
2002
2001
2000 Closed years
59 903
52 934
43 972
175 711
332 520
14 205
74 108
4 811
57 744
6 753
50 726
19 112
194 823
44 881
377 401
0
0
3 903
3 903
7
0
513
519
0
0
4 384
4 384
70 205
-23 794
46 411
57 225
-18 353
38 872
46 342
-11 187
35 155
32
36
7
76
328
279
565
172
118 651
103 414
222 065
Total
32
36
16
84
335
279
364
978
292 423
50 080
342 503
Note 11 Technical provisions for own account
2002
2001
321 433
336 585
53 722
375 155
45 380
381 965
Estimated outstanding recoveries from:
Pooling agreements
Other reinsurers' share
Total estimated outstanding recoveries
-12 021
-86 803
-98 825
-54 535
-59 609
-114 145
Provision for outstanding claims for own account
276 330
267 820
16 361
17 404
0
16 361
0
17 404
0
-268
-268
0
146
146
16 093
17 550
292 424
50 080
342 504
285 371
77 873
363 244
P&I
Gross estimated outstanding including IBNR
The association's estimated share of other
associations' pool-claims including IBNR
Gross provision for outstanding claims
FD&D
Gross estimated outstanding including IBNR
The association's estimated share of other
associations' pool-claims including IBNR
Gross provision for outstanding claims
Estimated outstanding recoveries from:
Pooling agreements
Other reinsurers' share
Total estimated outstanding recoveries
Provision for outstanding claims for own account
TOTAL P&I AND FD&D
P&I and FD&D
Contingency reserve
Technical provision for own account
31
NOTES
All figures in USD 1 000
Note 12 Accruals and deferred income
Purchase price Skuld Re II SA and Alvema SA
Other accruals
Accruals and deferred income
2002
2001
0
802
802
32 664
922
33 586
Note 13 Off-balance sheet items
GUARANTEES
Bank Guarantees and "Club Letter of Guarantees" amounting in total to USD 254.3 mill have been issued in
connection with claims, of which the latter makes up by far the greater part. The face values of these guarantees
greatly exceed the expected payments from the related claims. The expected payments from these claims are
fully covered in the provisions made for outstanding claims
The association has entered into a 10 years lease period for the Oslo office building.
CURRENCY FORWARDS
On 20 February 2003, 2.5 mill. GBP/USD was sold forward for settlement on 20 March 2003.
FUTURES
CONTRACTS
Security Description
UST 10YR FUTURE MAR 03
UST 2YR FUTURE MAR 03
UST 2YR FUTURE JUN 03
5 YR US TR NT MAR 03
5 YR UST NT FUTURE JUN 03
UST 10YR FUTURE JUN 03
MAR 10YR NOTE FUTURE TY
MAR 2YR NOTE FUTURE TU
MAR 5YR NOTE FUTURE FV
MAR 2YR NOTE FUTURE TU
Maturity
Date
31.3.03
31.3.03
30.6.03
31.3.03
30.6.03
30.6.03
20.3.03
27.3.03
19.3.03
27.3.03
Shares
10
13
24
18
43
24
25
-4
73
-3
Historic
Cost
1 145
2 764
5 150
2 007
4 843
2 718
2 768
-850
8 054
-639
27 960
Market
Value
1 157
2 804
5 156
2 046
4 856
2 744
2 893
-863
8 296
-647
28 442
Unrealized
Gain/(Loss)
12
40
6
39
13
26
124
-13
242
-8
481
Note 14 Financial risk
Interest and currency risks are integrated in the Asset-Liability Management. Principally, asset- and liability
exposure are matched, facilitating immunisation where changes in assets value are accompanied by a
corresponding change in the present value of future claims payments. Interest sensitive investments are managed
around a constant duration, fixed at the weighted claim duration of 2.1 years. Futures contracts on US Treasury
bonds are used to extend or shorten the duration as needed. The currency mix of liabilities is attempted matched
with a similar amount of assets. Derivative contracts (swaps and forwards) are used to improve the matching. The
stock portfolio is managed passively, benchmarked against the Morgan Stanley All Country World Index. This
implies a risk profile consistent with the global stock market, without overweight towards specific sectors,
countries or regions.
32
NOTES
All figures in USD 1 000
Note 15 Policy year statement by class as at 20.02.03
P&I
Advance calls, releases and other gross premiums charged in:
years to 20th February 2002
year to 20th February 2003
2002
2001
2000
0
106 421
106 421
96 798
0
96 798
108 332
0
108 332
0
0
0
27
0
27
28 390
0
28 390
Supplementary calls levied in:
years to 20th February 2002
year to 20th February 2003
Total calls and premiums
Reinsurance premiums
Claims incurred net of reinsurance recoveries
106
-24
82
-84
-2
421
330
091
703
612
96
-18
77
-94
-17
825
882
943
952
009
136
-23
113
-111
1
722
595
127
563
564
Net operating expenses
Net investment income
Taxes
-22 568
1 891
0
-19 072
17 886
0
-24 414
13 040
0
Total P&I
-23 289
-18 196
-9 810
2002
2001
2000
0
4 952
4 952
5 263
0
5 263
5 389
0
5 389
0
0
0
0
0
0
907
0
907
0
0
0
4 952
-260
4 692
-3 911
781
5 263
-221
5 042
-4 938
104
6 296
-254
6 042
-6 795
-753
-1 378
92
0
-1 275
1 015
0
-1 164
540
0
-505
-157
-1 377
-23 794
-18 353
-11 187
FD&D
Advance calls, releases and other gross premiums charged in:
years to 20th February 2002
year to 20th February 2003
Supplementary calls levied in:
years to 20th February 2002
year to 20th February 2003
Estimated supplementary calls
Total calls and premiums
Reinsurance premiums
Claims incurred net of reinsurance recoveries
Net operating expenses
Net investment income
Taxes
Total FD&D
Total P&I and FD&D
Calls and premiums, reinsurance premiums, claims and commission to brokers are allocated to the policy year to
which they relate. Operating expenses and investment income have been allocated to the policy year
corresponding to the accounting year.
Investment income, in policy year 2001, included a profit on the sale of real estate in Oslo of USD 12.7 mill.
Supplementary call is included in the policy year 2000 with USD 29.3 mill.
33
NOTES
All figures in USD 1 000
Note 16 Policy year statement as at 20.02.03 - Mutual and Fixed business
2002
MUTUAL
Total calls and premiums
Reinsurance premiums
Claims incurred net of reinsurance recoveries
82
-15
66
-70
-4
462
999
464
512
049
2001
78
-14
63
-74
-10
282
613
669
125
456
2000
117
-18
99
-105
-6
609
368
240
506
266
Net operating expenses
Net investment income
Taxes
-18 014
1 610
-76
-15 997
15 470
11
-20 787
11 107
-58
Total Mutual Business
-20 530
-10 972
-16 004
2002
2001
2000
FIXED
Total calls and premiums
Reinsurance premiums
Claims incurred net of reinsurance recoveries
28
-8
20
-18
2
910
591
319
101
217
23
-4
19
-25
-6
806
490
316
766
450
25
-5
19
-12
7
409
481
928
852
076
Net operating expenses
Net investment income
Taxes
-5 931
472
-23
-4 351
3 417
3
-4 791
2 545
-13
Total Fixed Business
-3 265
-7 381
4 817
-23 794
-18 353
-11 187
Total Mutual and Fixed business
Calls and premiums, reinsurance premiums and claims are allocated to the policy year to which they relate.
Commission has been allocated to the respective policy year. Other operating expenses have been allocated to
the policy year corresponding to the accounting year. Net investment income has been allocated to the policy
year corresponding to the accounting year.
Investment income, in policy year 2001, included a profit on the sale of real estate in Oslo of USD 12.7 mill.
Supplementary call is included in the policy year 2000 with USD 29.3 mill.
34
AUDITOR'S REPORT FOR 2002/2003
Translation from the original Norwegian version
This is a translation from the original Norwegian version. For this reason there is no signature.
35
MANAGEMENT
Douglas Jacobsohn
President &
Chief Executive Officer
Tor Erik Andreassen
Chief Operating Officer
Arthur Pilkington
Executive Vice President,
Defence Services & Emergency Response
Svein Sollund
Chief Financial Officer
Ellen Haugom
Senior Vice Precident
Human Resources &
Office Administration
Eric Jacobs
Executive Vice President,
Marketing & Communication
and General Counsel
Dan Lennhammer
Executive Vice President
Claims & Technical Services
THE BOARD OF DIRECTORS
Helfried Beutner, Chairman
RIGEL Schiffahrts GmbH & Co. KG
Arne Birkeland
A/S Billabong
Thomas Bjørn Larsen
Skuld (employee representative)
John P. Tavlarios
General Maritime Corporation
Nils Aardal, Vice Chairman
J.O. Odfjell AS
Kjeld B. Horn
Skuld (employee representative)
Veli-Matti Ropponen
Fortum Oil & Gas
Peter Wilsund
Rederiet A.P. Møller
Terje Adolfsen
Bergesen d.y. ASA
Tom E. Jebsen
Frontline Management A/S
Ulf G. Ryder
Stena Bulk AB
Bernt Wold
Skuld (employee representative)
36
THE COMMITTEE
Erik Gløersen, President
Jahre, Dahl Bergesen AS
Ulrich Niebusch
German Tankers Shipping
Wang Chun Lin, Vice President
Worlder Shipping Limited
Jan-Eric Nilsson
Rederi AB Gotland
Harald Andresen
Fred.Olsen & Co.
Karl-Erik Nitter Foss
Star Shipping AS
Capt. Cemil Bayülgen
UND Ro Ro Isletmeleri AS
Pericles S. Panagopoulos
Attica Enterprises Holdings SA
Jørgen Dannesboe
Armada Shipping SA
Børge Rosenberg
A/S J. Ludwig Mowinckels Rederi
Chen Jing De
Cosco Container Lines
Trygve Seglem
Knutsen OAS Shipping A/S
Kaj Engblom
Rederi AB Engship
Ole B. Stene
Barber International (USA) Inc
Knut Atle Ertsland
Continental Ship Management AS
John F. Staal
Clipper Denmark A/S.
Jens Fehrn-Christensen
Dampskibsselskabet ‘’Norden‘’ AS
Capt. Sergei A. Terekhin
SOVCOMFLOT
Tan Chin Hee
Pacific Carriers Ltd.
Felix H. Tschudi
Tschudi & Eizen Holdings A/S
Klaus Kjærulff
Dampskibsselskabet TORM A/S
Hans Petter Westfal-Larsen
Westfal-Larsen Management AS
Dick H. Lundqvist
Lundqvist Rederierna AB
Jia Hong Xiang
China Shipping Container Lines Co. Ltd
Capt. Alexander S. Migunov
Sinchart Shipping Pte. Ltd
SKULD OFFICE ADDRESSES
Assuranceforeningen SKULD (Gjensidig)
Assuranceforeningen SKULD (Gjensidig)
Skuld Hellas
Ruseløkkveien 26, Oslo, Norway
ved Den Danske Afdeling
Filellinon 1-3,
Mailing address:
Frederiksborggade 15
P.O. Box 80112
P.O. Box 1376 Vika, 0114 Oslo, Norway
DK-1360 Copenhagen K, Denmark
GR-185 36 Piraeus
Telephone: +47 22 00 22 00
Telephone: +45 33 43 34 00
Telephone: +30 210 459 4190
Telefax: +47 22 42 42 22
Telefax: +45 33 11 33 41
Telefax: +30 210 459 4194
Emergency phone: +47 952 92 200
Emergency phone: +47 952 92 200
Telex: (601) 212498 SKLD
E-mail: osl@skuld.com
E-mail: cph@skuld.com
Emergency phone: +47 952 92 200
Skuld Bergen AS
Skuld (Far East) Ltd.
Nedre Ole Bulls plass 3
Room 2909, China Resources Building
Mailing address:
26 Harbour Road, Wanchai, Hong Kong
P.O. Box 75, 5803 Bergen, Norway
Telephone: +852 2836 3909
Telephone: +47 55 30 18 60
Telefax: +852 2836 3219
Telefax: +47 55 30 18 70
Telex: (802) 69571 SKULD HX
Emergency phone: +47 952 92 200
Emergency phone: +47 952 92 200
E-mail: bgo@skuld.com
E-mail: hkg@skuld.com
E-mail: syn.ath@skuld.com
Organisation number: NO 938419531 MVA
The Annual General Meeting will be held at 1500 hours 4 September 2003 at Norges Rederiforbund (Norwegian Shipowners’ Association)
Rådhusgt. 25, Oslo, Norway.
COBRA AS. PHOTO: OLE WALTER JACOBSEN AND GETTY IMAGES. PRINT: NETWORK
www.skuld.com
Annual report 2002
Going the extra mile