Jahresabschlussberichte

2021 Chairman's Statement

Dear members

I can report that in its 29th financial year, ITIC has produced a strong surplus. ITIC, combined with its mutual reinsurer TIMIA, returned a US$29.2m surplus for the year to 31st May 2021 (“2020/21”) after paying US$13.3m for the cost of the continuity credit.  This follows the US$19.7m credit paid in the previous year. 

The investment return of 12.2% accounted for a contribution of US$30.4m. The budgeted forecast for the investment return was 3.0%. 

The continuity credit is paid to renewing members and it effectively reduces the cost of your insurance. Your board, at its meeting in March 2021, reviewed the level of ITIC’s free reserves and the relatively volatile investment markets. The board decided that, as the free reserves were still well above the amount required for ITIC’s solvency requirement and being aware that the members needed all the support they could get in these very difficult and uncertain times, they were going to pay a continuity credit for the 27th consecutive year for all renewals in the 2021/22 year.  

  • For one year policies, the credit was 15% of the premium. 
  • For two year policies, the credit was 25% for year one with at least a 15% promised credit for year two.  
  • Those in the second year of a policy, begun in 2020/21, will receive a credit of 25%, which was substantially more than the original 10% promised by the board at its meeting in March 2020.

Your board considers the payment of such continuity credits to be a very important benefit of being covered by a mutual insurer, even more so in these difficult times.  Since the continuity credit payments began 26 years ago, I am pleased to report that more than US$160.0m has been returned to you, the members. 

The risk for all claims up to US$1.0m continues to be retained by ITIC, as well as an additional two retentions in excess of the primary US$1.0m level and one retention excess of US$2.0m. As the marine insurance market has been a “hard” market for the past eighteen months to two years, ITIC paid 15% more for its reinsurance in addition to the adjustment for additional premium written throughout the year. We are comfortable that the reinsurance in place reduces the risks of large claims to an acceptable level at a reasonable cost, even with this increase. 

ITIC’s annual premium increased in 2020/21 by 4.3% and so ITIC has now had two good years of growth.  In past years, premium has remained static largely because of continued consolidation in the transport services market.  ITIC continues to retain approximately 96% of its members at renewal each year, which is a very high retention rate. 

The insurance, claims, contractual advice and practical help that we can provide through our staff in London to members, advisers, brokers and introducers around the world, continues to set us apart. Due to the lockdown in many countries and the difficulties travelling, ITIC has organised more webinars and podcasts which have attracted widespread international audiences.

It is important for ITIC to maintain its level of free reserves both for solvency reasons and to allow the levels of continuity credits to be paid to the membership.  I am pleased to advise that the combined free reserves of ITIC and TIMIA have increased from US$184.7m as at 31st May 2020 to US$213.9m as at 31st May 2021 despite the two very high years of continuity credits paid in 2018 and 2019.

In common with past years, the board decided to close the preceding policy year, meaning that no additional premium can be requested from members for the 2019/20 policy year or any earlier year.  The only full year that remains open is 2020/21. ITIC has never requested additional premium for any policy year.

ITIC underwrites approximately 30% of its business in the EEA via a fronting arrangement provided by an insurer based in Rotterdam, Netherlands for renewals.  The business within the EEA is very important to us and the cover and service remains unchanged. All of ITIC’s EEA business has now renewed via this route. Historical claims opened prior to the end of the Brexit transition period will continue to be dealt with and all the regulatory issues in the EEA have been addressed.

ITIC reports fully to Solvency II standards and is regulated by the Prudential Regulation Authority. Details of ITIC’s solvency position can be found in the Solvency and Financial Condition Report.

ITIC is committed to consistently providing competitively priced professional indemnity insurance (and related insurance covers) with valuable, high quality loss prevention advice to businesses servicing the marine, aviation, rail and general transport industry through a mutual insurance company supported by at least “A-” rated security from its external reinsurers.  The focus will continue to be on maintaining strong reserves and the provision of quality service and sound risk management advice by a highly competent staff.

The accounts and financial highlights for the 2020/21 year will be available on the website (www.itic-insure.com) before the AGM on 23rd September 2021. 

ITIC’s CEO, Stuart Munro, retires on 1st November 2021. In his 16 years as CEO, ITIC has seen substantial growth in premium, number of members and the free reserves, which have increased from US$61.0m to US$213.9m. Tom Irving, who has been with ITIC for over 10 years, will succeed Stuart as CEO. On behalf of the ITIC Board, I would like to thank Stuart for his years of service and wish him all the best for his retirement. 

Lars Säfverström 

Chairman, 

International Transport Intermediaries Club Ltd

Report and Financial Statements

The audited Report and Financial Statements for the year ended 31st May, 2021 for both ITIC and TIM (Transport Intermediaries Mutual) are below:

ITIC Directors' Report and Financial Statements for year ended 31st May 2021
TIMIA Directors' Report and Financial Statements for year ended 31st May 2021

The Directors and Managers of ITIC and TIM are mindful of the difficulties you may have in appreciating the financial strength of ITIC and its quota share reinsurer TIMA, merely by reading their respective accounts in isolation. Accordingly, in order to assist you in reaching a practical understanding of the combined financial strength of ITIC and TIMA, we have prepared unaudited Financial Highlights of the combined Accounts of the two Clubs, which can also be found here - Combined Highlights of ITIC and TIM.

View Financial highlights

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