TT Club posts $23 million surplus for 2005
The TT Club, a provider of insurance and related risk management services for transport and logistics companies, has rung up a $23.2 million surplus after tax for its 2005 financial year. The club's surplus and reserves increased 25.9 percent to $112.7 million in 2005.
Gross earned premiums rose 9.5 percent to $196.8 million, despite a slight reduction in premium rates.
Although the cost to the TT Club in gross claims from hurricanes Katrina, Rita and Wilma was less than $60 million, 'the net cost was reduced to approximately $2.5 million after deducting specific excess of loss and quota share reinsurances,' the club said in a statement.
Paul Neagle, chief executive officer of the TT Club, noted the reversal in 2005 of a currency trend prevalent in the last two years, which had seen a weakening of the U.S. dollar against other major currencies, especially the euro and sterling. While interest rates and equity markets both rose significantly in 2005 and generated investment gains for the club, those were eliminated by the fall in value of the euro and sterling compared to the dollar.
Neagle noted that the TT Club has been holding seminars worldwide on hazardous cargoes. 'The risk to personnel and property from leakage of toxic chemicals, or fire or explosion of inflammable goods, is enormous and has been demonstrated in a number of high-profile marine casualties in recent years,' he said.
The TT Club also sponsored a seminar in Hong Kong for Asian ship operators on North American chassis liabilities and insurance, 'covering an operational sector in which the Club has experienced several large and sometimes horrific bodily injury claims,' Neagle explained.
TT Club posts $23 million surplus for 2005
