Nordic marine insurer Alandia has seen premium income pick up by 10% in 2021, but it has reported an underwriting deficit after seeing claims increase.
For the year to the end of December 2021, Alandia said its premium income increased to €93m ($105m), compared with €85m in the previous year. The rise came mainly from its hull and machinery, protection and indemnity and cargo insurance lines.
Claims increased to €64.3m, compared with €52.8m in 2020, resulting in a €3.7m deficit from its insurance operations. Its total combined ratio was 104.6% indicating an underwriting loss.
The insurer’s overall result was helped by a €27.4m return from investment operations, compared with €15.9m in the previous year.
The income attributable to the parent company’s owners in 2021 was €18.6m, compared with €30.7m in the previous year.
Chief executive Tony Karlstrom said: “In 2021, the increase in premiums has been good with 10% higher earnings compared to the previous year. Claims costs were higher than expected resulting in a negative result for the insurance operations.
“The result of the investment operations was very good, with a result that mainly derived from investments in stocks, while the return of the fixed income portfolio was slightly negative.”
Alandia’s solvency ratio has fallen slightly to 247%, compared with 273% at the end of 2020.
The insurer has maintained its S&P Global Ratings A- rating with a negative outlook.
