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

The stable outlook reflects our expectation that Steamship will record combined ratios of about 100% and maintain its risk-based capital adequacy above our 99.99% confidence level over the next two years. We also expect the club will 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 above our 99.99% confidence level 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

...We expect Steamship will maintain its strong position in the global P&I market. Steamship's disciplined approach to underwriting and management's continuing focus on servicing customer needs will allow Steamship to maintain strong retention levels and an underwriting balance over the long term. The club achieved a combined ratio of 93.1% for the fiscal year ended Feb. 20, 2024 (fiscal 2024), a slight improvement from 93.9% in fiscal 2023. We anticipate that it 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 fiscals 2023 and 2024. The severity and number of pool claims have been on the rise in fiscal 2025. Steamship's capital will remain a key rating strength over the next two years. Steamship's Solvency II capital ratio increased to 249% at February 2024 from 224% at February 2023. We believe...

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