Steamship Mutual Underwriting Assn. (Bermuda) Ltd. (The)

The stable outlook reflects our expectation that over the next two years Steamship will record combined ratios of about 100% and maintain an excess of capital above our 'AAA' benchmark. We also expect the club to produce underwriting results that are in the top half of its peer group. We could take a negative rating action if we did not expect Steamship to maintain an excess of capital over our 'AAA' benchmark over a prolonged period. We could also take a negative rating action over the next two years if Steamship recorded combined ratios in the lower half of its peer group. We consider it very unlikely that we will take a positive rating action on Steamship over the next

...Steamship will maintain its strong reputation and strong competitive position in the P&I sector, in our opinion. The Steamship Mutual Club's disciplined approach to underwriting and management's continuing focus on servicing customer needs will allow the Club to maintain strong member retention levels and an underwriting balance over the long term. The Club achieved a combined ratio of 93.9% for the fiscal year ended Feb. 20, 2023 (fiscal 2023). This marks a significant achievement as it represents the club's first sub-100% result since fiscal 2020. We anticipate that the club will continue to operate around breakeven in the forthcoming periods (ratios under 100% indicate an underwriting profit). As observed with other clubs, the better-than-expected underwriting performance stems from a notable absence of pool claims in fiscal 2023. The number of pool claims in fiscal 2024 is still below the historical average so far....

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