UK Club finances

The UK Club’s financial position remains strong with free reserves of US$488 million as at 20 February 2022. The Club continues to comfortably meet all its regulatory capital requirements and remains in the highest AAA band of Standard & Poor’s capital model. The Club’s combined ratio of 115 per cent is a significant improvement from last year and its own large claim experience was positive for 2021/2022. However, the IG pool suffered its worst ever year (net of reinsurance), exceeding last year’s record. Global investment markets performed favourably for much of the year until the market correction just before the Club’s year-end. The final return of approximately $19.6 million, or 1.9 per cent, was strong given prevailing market conditions and offset much of the underwriting deficit.