Annual Review and Accounts
Transcription
Annual Review and Accounts
COBRA AS. PHOTO: OLE WALTER JACOBSEN AND GETTY IMAGES. PRINT: NETWORK www.skuld.com Annual report 2002 Going the extra mile Going the extra mile President and Chief Executive Officer 2002 at a glance This is Skuld Management Review Corporate Governance Report of the Board of Directors 2 8 10 12 14 20 22 Consolidated income and expenditure account Balance sheet Notes Auditor’s report Management and Board of Directors Committee and addresses 26 27 28 35 36 37 ...for you Being where you are 2 According to Captain Sam S. H. Park, President of Seoul based Spark International, Skuld's correspondent in Korea, quality correspondent service is characterised by quick on-site response from skilled and experienced representatives who will do their utmost to protect members' interests. This year Spark International has been representing Skuld successfully in the 'Neftegaz 67' case, a collision with a drilling rig off Pusan, Korea. At Skuld, we focus on meeting the needs of our members. That includes being present and available where our members conduct their business. Our basis is a staff of 143 skilled employees. In addition, with our worldwide network of some 750 correspondents, we cover the world effectively. As a member, you can always rely on a Skuld representative to meet and assist any vessel in need, calling at any port, anywhere in the world. 3 Taking immediate action 4 Jonathan Hare was involved in operating the Claims Handling Office set up and in operation shortly after ”Braer” grounded off Shetland in 1993 and again following the Sea Empress incident in Milford Haven in 1996. He has developed considerable experience in handling oil pollution claims and is ready to set up office anywhere in the world if needed. In your business, time is of the essence. This is never more true than when incidents or accidents occur. That is why we are always available, around the clock around the world, ready to take action on your behalf. As a Skuld member, you can rely on an efficient and timely response, whatever the situation requires. 5 Defending your interests 6 Many of Skuld’s underwriters and claims handlers have legal skills. They are assisted by a team of senior marine lawyers, making sure that members have access to legal expertise in all situations. Janet Ching is a qualified solicitor with experience from a wide range of shipping cases, mediation, arbitration and court proceedings. Janet is part of Skuld’s Defence Services. Marine insurance matters may be very complex and involve legal processes pertaining to national or international marine law. As a Skuld member, you can draw on the services of our experienced and highly skilled legal teams. Whatever the issue and whoever the counterpart, you can rely on us to assist in defending your interests. 7 PRESIDENT AND CHIEF EXECUTIVE OFFICER Going the Extra Mile Writing this commentary every year is always a challenge. Remembering what you have said in previous years and fulfilling predictions and promises is not always that easy. This year, however, it is an encouraging task. We have proved to members that Skuld is a top quality P&I club with an undisputed service and competence level. The necessary actions taken in the past several years to strengthen and enhance core activities are starting to pay off in preparing your club for the future. I dare say that we now see our efforts materialising in a highly competent, efficient and user-friendly organisation, prepared to go the extra mile. This is what makes the real difference and distinguishes one club from another. In addition to the daily smooth administration of members’ insurance needs, our purpose is to provide members with the best possible claims handling, legal advice and emergency response available. If and when members become involved in an accident or legal dispute, they know Skuld is there protecting their balance sheets. 8 Over the past years, and ever since the nineties, we have covered a number of high profile maritime disasters, either with major human or environmental casualties. Even though these accidents were tragic and many lives were lost, we have learned from them and can use the experience gained for the future benefit of members and others in similar situations. Just remember Scandinavian Star, Braer, Estonia and Sea Empress. The very same people who handled those cases are still in Skuld with their accumulated knowledge, ready to serve you whenever necessary. I think it is fair to say that those examples taught us the very meaning of “going the extra mile” in achieving something better together with our members. Of course, it is not only the really big losses we are trained to handle. Many thousands of incidents and claims situations are passed on to our staff every year. In these cases as well, we must do a top job for members while keeping costs at a resonable level. PRESIDENT AND CHIEF EXECUTIVE OFFICER You should realise that the real value of this knowledge bank is yours and will be there whenever you need it! We are also ready to share our experience for the benefit of legislators and our business associates. Your club has undergone a tremendous transition from the new Millennium until today. While writing these comments, we are now able to see a positive change in the balance between premiums and claims, as well as promising effects of our new IT system and improved business procedures. All of you members of the club who have been loyal to our long term strategy to transform Assuranceforeningen Skuld into a modern vehicle to deal with shipowners’ liabilities and other related matters, should be able to look forward to a long term sustainable level of financial balance in Skuld. Patience is finally paying off! In the following sections, you will find detailed information on the fiscal year 2002 which I think you will find interesting reading. Even though the bottom line results are disappointing, they are only a reflection of the past. They are primarily attributable to an increase in claims payments and reserves for former members, as well as bad debts written off for insolvent former members. Both of these should be seen as one off situations. In order to restore the association’s reserves, the Committee and the Board approved the Management’s suggestion to utilise a bridging financial facility of similar nature to other Alternative Risk Transfer Solutions provided in the market. After carrying this out, free reserves will stand at just over USD 75 mill or USD 2.85 per GT. Douglas Jacobsohn President & CEO 9 2002 AT A GLANCE 100 80 60 Skuld highlights • Rate increases continued for the 2003 renewals, with average increases for members of 25% and stable volume 40 20 0 1998 1999 2000 2001 2002 Skuld Contingency reserves per year (USD mill) • Moved to better and more efficient office premises in Oslo • More than 30 countries represented at Skuld School • Gross claims decreased from USD 114.4 mill to 96.8 mill • Renewal documentation sent to members in record time thanks to new IT system beginning to pay off • Upgraded to ISO 9001:2000 quality standard, now also including Hong Kong and Piraeus offices 150 120 90 60 30 0 1998 1999 2000 2001 2002 Skuld Premium and calls for own account (USD mill) Industry highlights • Several incidents hit the industry in the fourth quarter causing increased losses 20 15 • Group reinsurance renewed at about 40% price increase 10 • War risk cover expanded to USD 400 mill • US authorities imposed new anti-terrorism legislation, Terrorism Risk Insurance Act (TRIA) which effects the industry • New protocol to Athens convention adopted by IMO • International Group agreed to share claims information on claims above USD 100 000 • High incoming pool claims 10 5 0 1998 1999 2000 2001 2002 Skuld Administrative expenses (USD mill) 2002 AT A GLANCE Five-year financial summary Amounts in 1.000 USD Premiums and calls for own account 1) Claims incurred for own account Gross investment revenue 2) Balance carried to contingency reserve Contingency reserve 3) 1998 116 594 113 878 28 388 2 324 79 615 1) In the original accounts for 1997 to 1999, Skuld's share of other clubs' Pool claims was included in reinsurance costs. In this statement, these amounts have been included in incurred claims to comply with the 2001 accounts. The 1999 figures include unbudgeted calls of 10% for 1998 and 1999, while the 2001 figures include unbudgeted calls of 15% and 45% for 1999 and 2000 respectively. 1999 125 358 124 959 23 783 -8 461 87 689 2000 89 099 96 400 18 378 -17 603 70 151 2001 121 082 114 410 21 795 3 337 77 873 2002 90 679 96 835 1 748 -28 602 50 080 2) Including sale of real estate in Oslo in 2001, generating a profit of approx. USD 12.7 mill. 3) In 1999, accounting principles were changed to include investments at market value, resulting in an increase in contingency reserve despite a negative balance from the income and expenditure account. The business year The underlying business improved significantly during 2002 due to higher premiums and lower club claims. Nevertheless, the club posted a negative result of USD 28.6 mill, which were deducted from the contingency reserves. This unsatisfactory result is a consequence of several negative factors throughout 2002. Several of the club’s members with outstanding premiums turned out to be insolvent and bad debt had to be written off. The equity market dropped significantly for the third year in a row. Although the association made a small return on investments, it was not sufficient to support the business. A large cruise member experienced increases in claims due to massive law suits. Existing and new claims reserves for this member had to be adjusted, and thus contributed to a larger loss. Incoming pool claims for 2002 increased dramatically compared to 2001, and Skuld had to pay and reserve for its share of these claims. Although the underlying claims trend for the remaining book of business is positive, provisions for incurred but not reported (IBNR) claims have been held constant in order to secure the future results against any further negative development. As a consequence of strengthened NOK and DKK relative to USD, the shift from an owned office building to a leased building and the depreciation of the IT systems, the administration expenses increased by some USD 3 mill. Despite a loss of 18% in equities, the bond portfolio and Skuld’s currency hedge secured an overall profit of 1% corresponding to a USD 2.1 mill investment profit. 11 THIS IS SKULD Assuranceforeningen Skuld is a leading marine insurer that provides Protection and Indemnity (P&I), Energy and Defence cover to shipowners and charterers all over the world. The purpose of the association is “mutual insurance against liabilities and losses incurred by members in direct connection with the operation of the entered vessels”. President and CEO Douglas Jacobsohn HRM & Off. Adm. Ellen Haugom Chief Financial Officer Svein Sollund General Counsel Eric Jacobs Defence Services & Emergency Response Arthur Pilkington Chief Operating Officer Tor Erik Andreassen Claims & Technical Services Dan Lennhammer Marketing & Communication Eric Jacobs Oslo Syndicate 1 Lars Dueled Copenhagen Syndicate 1 Anders Ulrik Hong Kong Syndicate Patrick Wang Oslo Syndicate 2 Claes Westman Copenhagen Syndicate 2 Jan Katkjær Pireus Syndicate Lily Karaiscos-Samellas Oslo Syndicate 4 Egil Gulbrandsen Bergen Syndicate Bjørn Flåm Energy Syndicate Powan Li As a mutual association, the club is owned and controlled directly by its members. Established in 1897 in Oslo, Norway, some 50% of the tonnage entered in the association continues to be Scandinavian-controlled, reflecting the club’s traditional balance between Scandinavian and non-Scandinavian business. Its other 12 big markets are most Western European countries in addition to Russia, Singapore, China including Hong Kong and the United States. With its established and strong position in "mature" markets such as Norway and Denmark, the largest growth potential is currently perceived to be in Greece and Asia. THIS IS SKULD SKULD OFFICES CORRESPONDENTS (A total of more than 750 worldwide) In addition to its head office in Oslo, Skuld has offices in Copenhagen, Bergen, Piraeus and Hong Kong. A competent staff of 143 skilled employees worldwide and an extensive network of correspondents, makes Skuld a competitive service provider who will always go the extra mile for members. Skuld is one of thirteen members of the International Group of P&I Associations that work closely together in reinsurance and industry matters of common interest. The International Group insures approximately 90% of the world’s merchant fleet. 13 MANAGEMENT REVIEW Consolidation in a challenging year In a year characterised by several serious accidents, limited growth opportunities and a generally hardening market, Skuld improved the efficiency of its operation and saw clear signs of improvement in its underlying business towards the end of the year. General The operation of Skuld during 2002 was characterised by consolidation. There was reduced business volume at the outset of the year compared to the previous year. This in combination with organic growth by existing members and a good outcome for the 2003 renewals, contributed to a further stabilisation of Skuld’s operation. for the 2003/04 renewals. Skuld was among the eleven of thirteen P&I clubs that set a general increase of 25%. The increase was applied with some discretion for members with an appropriate rating and good loss statistics, whereas underpriced accounts or those showing negative performance had to face increases beyond the mentioned general 25% level. Business volume and renewal During the course of the 2002 policy year, the volume of owners’ business was reduced by 1.3 million GT. This reduction was primarily attributable to sale of vessels entered by our members. The volume of charterer’s business was comparable to or slightly above the previous year. On the energy side, we saw several drilling units move into lay-up, in line with deteriorating market conditions. At the same time, business with Floating Production Storage & Offloading units (FPSOs) and similar units expanded somewhat. Consistent with a hardening market, the association set stringent guidelines 14 Although some tonnage was lost during renewals, a corresponding volume was added to the association’s book of owner’s business, making the net reduction only some 200 000 GT, or less than one percent. In summary, the achieved increase on owners’ business exceeded our objectives. Charterers liability insurance saw an increase of 14%, while reducing the volume by some 10%. Operations The recent investments and change of IT systems has significantly rationalised and simplified the documentation process to complete annual renewals. For the first time, issuing policies and invoices to all members was reduced to a few weeks compared to a corresponding number of months previously. Looking ahead, we see clear signs that implementing our new business system, TIA, substantially increase our efficiency in daily claims handling. In addition we will be able to provide much more sophisticated internal and external claims information. During the last six months of 2002, we saw a considerable drop in the number of outstanding open claims, largely due to the efficiency of the system. Several manual and time consuming claims routines have disappeared and this enables much better and costeffective claims handling. The Data Warehouse system extracts and accumulates the above mentioned information. It can generate tailormade claims reports based on information entered into TIA. The current reports are used in the daily claims control MANAGEMENT REVIEW Consistent with a hardening market, Skuld set stringent goals for the 2003/04 renewals, being among the eleven of thirteen P&I clubs that set a general increase of 25%. and are proving to be very effective management tools. The next step in the Data Warehouse process is to provide members with reports regarding their specific claims portfolio. These tools will be vital in our efforts in the loss prevention field in the years to come. In summary, the first year of our new IT system has led to cost-savings through increased efficiency, but we also expect to see significant improvements in the coming years, both with respect to cost-savings and improved claims service to members. Claims Marine underwriters in general will look back upon the 2002 policy year with grief and horror, especially in the Hull & Machinery sector. In particular, the fourth quarter of the calendar year involved a series of major accidents attracting high media attention world-wide. None of the vessels involved in these events were entered with Skuld. Despite avoiding direct costs, the association will nevertheless contribute to the compensation for several of these events via the International Group Pooling Agreement. Partly due to sums involved for the accidents mentioned above, the association’s costs relating to Incoming Pool Claims (IPC) for 2002 will most likely be the highest ever since Skuld joined the International Group. In total we have paid and reserved USD 14.9 million to cover IPC for this policy year. The impact of IPC on the accounting year is partly balanced due to reserves for earlier policy years being somewhat reduced. In sum, the total cost for IPC on the accounting year is USD 11.8 million, which should be considered high in relation to Skuld’s current share of the Pool. It is, however, important to remember that IPC by nature are volatile, given the value range of claims covered by the pooling arrangement. The randomness of the occurrence of accidents implies considerable variations from year to year. The pooling arrangement is still considered the least expensive reinsurance solution available. As pointed out elsewhere in this Annual report (pages 9 and 23), a substantial part of the association’s negative 2002 results is related to the claims development of one US based cruise operator not 15 MANAGEMENT REVIEW Claims per GT 4,0 3,5 3,0 2,5 2,0 1,5 95 96 97 98 99 00 01 02 03 Claim/GT Premium/GT renewed. The total sum of compensation and increased reserves on open cases for this ex-member affecting the 2002 accounting year, amounts to USD 17.3 million. These costs represent 22% of total claims costs for own account in the accounting year 2002. The mentioned amount is a result of the following factors: • Increased frequency of reported claims • Jury decisions on claims ending in court with settlements for amounts way above any estimates made by experts and lawyers • The above mentioned court cases necessitated a comprehensive internal review of all open cases. The reserves on some cases were accordingly increased The results on the above account strongly justify the association’s decisions to discontinue the underwriting of US based cruise business in general and not to renew the account referred to above in particular. 16 The club’s expenditures for legal fees did not develop as planned and are still at an unacceptable level. In order to get better control over our external legal costs, stricter cost-control has been implemented and we expect to see improved results during the accounting year 2003. Looking ahead, we see clear signs that our new IT systems will substantially increase our efficiency in daily claims handling and provide much more detailed claims information. The total claims cost per policy year divided by the applicable tonnage is illustrated by the light green line in the graph above. The decreasing claims trend over the past five years is positive, and has in particular been reduced considerably over the past three years. From 1999 to 2002, claims costs per GT decreased by 23%. The red line in the graph above illustrates the premium per GT per policy year. The premium excludes unbudgeted supplementary calls and market reinsurance premiums. The graph illustrates the increasing premium to claims margin since the margin was negative. The development is a very strong indicator of the club’s recovery. Assuming other factors being equal, the average premium level in 2003 is now comparable to that of 1997. In summary, from a claims perspective the year 2002 has developed better than our prognosis. The main explanation is that we now see the effects of the MANAGEMENT REVIEW improved member structure that we have achieved over the past few years. Adjusting the management structure In line with an aspiration of being a dynamic organisation and a willingness to change, Skuld’s management structure has been adjusted in several areas in the course of the last year. Firstly, a separate Defence unit has been established to bring together the best in-house resources on defence matters. Working together as one business unit, these unified resources will be able to provide the various syndicates and their respective members with the very best advice and counselling on legal matters. Secondly, to adjust to the volume of business in the related markets, two of the syndicates in Oslo have been merged into one. This change enables a streamlining of the syndicates’ geographical boundaries and, more importantly, ensures a more flexible and efficient use of in-house resources. Finally, management of all the syndicates is now the responsibility of one person, Skuld´s Chief Operating Officer, thus ensuring clearer lines of responsibility and better communication lines in the organisation. In sum, the above mentioned steps may seem small, but are important in our efforts to go the extra mile for members, providing excellent service and products at the lowest possible cost. 530 mill (USD 500 xs. 30 mill). The latter is partially protected by reinsurance. When a club experiences a claim which is expected to exceed USD 5 mill, the International Group is notified, and as payments are made after the initial USD 5 mill, the costs are shared between the clubs. The costs are split Reinsurance The Pooling agreement One of the most important functions of the International Group of P&I Clubs is the pooling of risks and the Group´s purchase of reinsurance. No club has the financial strength to carry the significant risks of P&I alone, but by combining the strength of all the clubs, the Group is able to summon sufficient resources to offer an affordable and well funded product. The pooling consists of two parts; claims between USD 5 and 30 mill (expressed as USD 25 xs. 5 mill) and 25% of all claims between USD 30 and In order to get better control over expenditures for external legal fees, stricter cost control has been implemented and we expect to see improved results during the accounting year 2003. 17 MANAGEMENT REVIEW Skuld payments and refunds from the Pool per annum 30 25 20 15 10 5 0 -5 -10 -15 -20 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 Received from pool Paid to pool IBNR based on a formula where previous claims, gross tonnage and premium are important factors. The Group´s reinsurance programme, normally referred to as “market reinsurance”, provides cover between USD 30 mill and USD 2 bill, split in various layers. In addition, protection is bought for specific risks such as war risk and US Voyage. For 2003, total market reinsurance costs exceed USD 200 mill. Although the market reinsurance has proven to be efficient for the reinsurance industry, the prices have increased significantly over the last two years. For the 2003 renewal alone, the average price increase was 38%. These costs are shared between the clubs and ultimately by members by means of a formula fairly similar to the one used to share the claims. As can be seen from the graph above, 2002 was a bad year for the Pool, with claims such as Prestige, Hual Europe and Tricolor. The latest years are not fully developed yet, and all clubs add a significant portion of IBNR (incurred 18 A separate Defence unit has been established to bring together the best in-house resources and provide members with professional advice on defence matters. reduced business volume and less claims. Other clubs’ large claims in 2002 contributed, however, to a large deterioration in the association’s earnings. Including IBNR, other clubs’ Pool claims are estimated to have cost Skuld some USD 15 mill in 2002. In total, over the last 18 years, Skuld’s net position relative to the Pool is neutral. The later years are expected to have a further negative development and Skuld does not have any recent claims in the Pool. When these policy years have fully matured, we therefore expect to have contributed USD 5-10 mill to the Pool. Reinsuring own retention but not reported claims) to these figures. However, 2001 seems to have been a very good year, so far. Skuld Skuld’s share of Pool claims has been reduced over the last years, due to Pooling and market reinsurance represent good cover for risks in excess of USD 5 mill. There are, however, significant fluctuations below this level and also for the payments Skuld has to make to other clubs’ pooled claims. Reinsuring these risks is expensive, and the level of reinsurance must be optimised. We have therefore developed tools in order to evaluate the necessity MANAGEMENT REVIEW and prices of various reinsurance set-ups. As a result, the reinsurance protection of risks below USD 3 mill has been omitted for 2003 and the rest of the programme optimised. These changes, in addition to renegotiated reinsurance prices, are expected to increase the club’s results by USD 2-4 mill in 2003. Personnel The management of Assuranceforeningen Skuld recognises the importance of motivating all employees through competence building, constructive feedback on work done, and maintaining and developing a positive working environment enabling staff to cope with changes. The association acknowledges its responsibility for applying environmentfriendly practices and procedures. The working environment is considered to be good and management places emphasis on education and training of staff as a strategy for meeting the demands and challenges of our members. Environmental status The association acknowledges its responsibility for applying environmentfriendly practices and procedures. Current status in terms of some key environmental parameters is as follows: • Sick leave in the period totalled 4.34% which is down from previous years • No absence was ascribed to injuries caused at work The main features of the association’s environmental programme are: • The head office heating system is sourced on electricity plants fuelled by waste materials • Used paper and obsolete batteries, computers, printers and other office equipment are returned for recycling, whenever possible • Video conference equipment has been in use for several years, enabling a reduction in the amount of travel • Purchase and use of goods and services shall reflect sound environmental principles 19 CORPORATE GOVERNANCE Corporate Governance on the agenda For companies today good corporate governance is becoming increasingly important. This is also the case in Skuld. The association’s owners and members demand – and have a right to expect – good corporate governance. In 2002 Skuld has focused on developing separate and more detailed guidelines covering the responsibilities of the Board of Directors, it’s Chairman and the President & CEO. “Skuld Corporate Guidelines”, were approved by the Board of Directors in March 2003. A focus on corporate governance is nothing new to Skuld. The association has always had a tradition of high governing standards, as shown in “Statutes and Rules” published annually and available on Skuld’s website. The statutes set out the structure and roles of the governing bodies, how they are elected and their mandates. The aim is independence and control in governing Skuld, while at the same time making sure that there are equal terms for equal members. Election Committee ANNUAL GENERAL MEETING Control Committee COMMITTEE BOARD OF DIRECTORS President & CEO Assuranceforeningen Skuld (Gjensidig) 20 Auditor CORPORATE GOVERNANCE The General Meeting The General Meeting is Skuld’s highest authority where all members have a right to attend. The number of votes is distributed according to each member’s gross tonnage entered in the association. The ordinary general meeting takes place annually in August/September. The General Meeting makes decisions in matters within its authority and elects the members of the Board of Directors, the Committee, the Election Committee and the Control Committee. The Committee The Committee consists of representatives from 10-30 members, all elected by the General Meeting. The Committee supervises Skuld’s business, elects Skuld’s Auditors and makes decisions regarding insurance conditions and premiums. The Board shall at all times follow the responsibilities and tasks laid down in Skuld’s statutes, and the association shall be managed in accordance with the Norwegian Insurance Activities Act. The separate corporate guidelines adopted in March 2003 give detailed information as to responsibilities, structure of meetings, rules applying to quorum etc. During a year the Board meeting agendas will include items such as Skuld’s strategy plan, annual budget and premiums, any changes to statutes or rules, International Group Association (IGA) issues, reinsurance contracts and internal control procedures. All Board members have the same rights and obligations and as Board members shall have the interest of the association first in mind. The Board of Directors Members of the Board of Directors are elected independently among Skuld members, following recommendations made by Skuld’s Election Committee. New board members are formally elected by the General Meeting. The Chairman of the Board The Chairman of the Board’s powers of attorney are set out in the association’s Statutes and/or are decided by the Board. The Chairman of the Board’s responsibilities are listed in Skuld’s Corporate Guidelines. The CEO The President and CEO is responsible for the day-to-day management of the association and shall communicate with the Board in matters of an unusual nature or of great importance to Skuld. The CEO’s responsibilities are based on Skuld’s Corporate Guidelines. The CEO shall ensure the association’s compliance with all applicable legislation and the adherence to the code of conduct of the association, i.e. “Ethical Guidelines”. While stating the obligation of confidentiality, the Guidelines for the Board of Directors also focus on the responsibility for information related to Board matters. This responsibility rests with the Chairman of the Board and CEO. Skuld aims at open and transparent communication with members, employees and other stakeholders. The 2002 half year report, the first in Skuld’s history, was an example of this new trend. 21 The year 2002 was yet another difficult year for maritime insurers. Slow global growth, combined with poor equity markets and increased loss provisions for older claims contributed to weak results. Furthermore, the last quarter of the calendar year entailed a series of major marine casualties, some with a high media profile, affecting the results of P&I clubs as well as Hull and Machinery underwriters. As a result, many insurance companies’ free reserves have decreased substantially. REPORT OF THE BOARD OF DIRECTORS A strong focus on strengthening core business The year 2002 was yet another difficult year for maritime insurers. Slow global growth, combined with poor equity markets and increased loss provisions for older claims contributed to weak results. Furthermore, the last quarter of the calendar year entailed a series of major marine casualties, some with a high media profile, affecting the results of P&I clubs as well as Hull and Machinery underwriters. As a result, many insurance companies’ free reserves have decreased substantially. The poor international investment market combined with a strong Norwegian currency and a reduction in the association’s volume have had a significant negative impact on the results of the association’s 106th year of business. There are, however, clear indications that the underlying business (claims versus premium income) is improving due to the combined effects of achieved premium increases and selection of tonnage with good loss records. Consolidation Following a period of change and restructuring, the association has focused on consolidation and improving core business processes. The Board is of the opinion that managing the association’s overall risk in a better way has top priority. High focus has been given to enterprise risk management and a further redefining and fine tuning of our systems for risk selection and pricing. Making sure that the association has the right selection of membership is important, but only to the extent that the right price for these risks can be obtained. The policy year The accounting year has developed more negatively than expected, and the net financial result was a loss of USD 28.6 mill, which in its entirety will be covered by the association’s contingency reserves. The negative results are to a large extent due to extraordinary one-time events, which should be looked upon in isolation from the ordinary premium and claims situation. Due to improved information during the year, the association has found it necessary to increase claims provisions considerably for one ex-member due to a potential increase in liability in connection with US personal injury cases. The increase in claims provisions for this ex-member stands for more than half of the negative results. Furthermore, the association has found it necessary to write off a considerable amount of total accounts receivable, due to insolvency and payment difficulties for several members who have left the association. In addition, due to an increase in other clubs’ large claims, the ultimate projection of incoming pool claims doubled compared to the previous year. Combined, these three extraordinary events stand for almost the entire negative result of the association. 23 REPORT OF THE BOARD OF DIRECTORS Despite the negative results, the Board is also confident that the underlying business is showing healthy signs of improvement where incoming premiums cover incoming claims and administration costs. At the end of 2002, the association’s free reserves will be reduced to USD 50 mill. This is about 10% below the stringent minimum reserve requirement adopted by the Norwegian Banking, Securities and Insurance commission (“Kredittilsynet”). Therefore, in agreement with the Commission, the association has sent an application for temporary exemption of the requirement until the end of the policy year 2003 (Please see footnote). It is, however, important to note that the association’s free reserves still are twice the minimum requirement set by the EU, which most of the International Group clubs are governed by. The Board has noted with satisfaction that the renewal, which ended on the 20 February 2003, resulted in a general increase of slightly over 25% for Owners’ tonnage and about 14% for Charterers’ accounts. At renewal, the members’ payment history and solvency have also been taken into account. This, in combination with improved invoicing routines, will ensure timely payment and significantly reduced losses on outstandings. The Board is therefore of the opinion that the policy year 2003/2004 will be closed with positive results. Hence, one will be able to increase the association’s free reserves in the course of policy year 2003. The 2001 policy year will be kept open until full information of the year is available. Return on investments Return on financial investments has been poor for the third consecutive year, as a result of continued fall in international equities. However, as in previous years, the bond markets have performed well. The Board has noted with satisfaction that the conservative investment policy once again has provided the association with an overall positive return on investments in these difficult markets. The overall financial return ended at 0.95% measured in USD. Reinsurance The trend of increasing reinsurance premiums has continued. The association has therefore used considerable time and effort analysing the reinsurance needs and the composition of its various contracts. An advanced stochastic model was built to assist in the evaluation process and choice of new covers and structures. The Board therefore notes with satisfaction that the association has modified and renewed its reinsurance programme with Swiss Re on favourable terms Personnel and environment In December 2002 the association moved it’s head office from Roald Amundsens gate 6 in Oslo which had been the head quarters since 1932 to Ruseløkkvn. 26, Oslo. In the new headquarters all employees are placed on one floor in new and modern premises. Besides improving the working environment, the move ensured a significantly lower lease, compared to the lease on the old premises. * On 4 July the Norwegian Ministry of Finance granted Skuld a temporary exemption of the requirement until the end of the policy year 2003. 24 REPORT OF THE BOARD OF DIRECTORS At year-end there were 143 staff members fully employed by the association. The association seeks to uphold good working conditions with good internal communication, leading to improved efficiency. The association is unaware of any activity affecting the external environment. For details of the club’s environmental programme, see page 19 of the Management review. The Board of Directors herewith presents the association’s Annual Report and Accounts for 2002, which is the associations 106th year of business. The consolidated accounts include the association’s subsidiaries APS Generalagenturet for Skuld, Copenhagen; Skuld AB and Skuld AB (New), Stockholm; Skuld (Far East) Ltd., Hong Kong; Skuld Bergen AS; Skuld Hellas Ltd., Piraeus and the wholly owned reinsurance companies Skuld Re SA, Skuld Re II SA and Alvema SA, Luxembourg. The consolidated accounts also include the association’s affiliated club in Bermuda, Skuld Mutual P&I Association (Bermuda) Ltd., Hamilton. In accordance with the two associations’ bye-laws, their members enjoy joint membership in both associations, which act as co-insurers on a joint basis with equal insurance conditions and bye-laws. The association participates on a joint basis in the International Group of P&I Associations’ pooling arrangements and excess loss reinsurance contracts entered via the pool. The accounts are consolidated and the Bermuda Association is subject to Bermuda supervision and reporting. Oslo, 14 May 2003 Helfried Beuther Chairman Nils Aardal Vice Chairman Terje Adolfsen Arne Birkeland Tom E. Jebsen Ulf G. Ryder John P. Tavlarios Peter Wilsund Douglas Jacobsohn President & CEO Veli-Matti Ropponen 25 CONSOLIDATED INCOME AND EXPENDITURE ACCOUNT All figures in USD 1 000 Note 2002 2001 2 113 303 -22 624 90 679 141 557 -20 475 121 082 3 3 112 -18 -11 14 96 162 -25 -24 1 114 TECHNICAL ACCOUNT PREMIUMS AND CALLS Gross premiums and calls - Reinsurance premium Earned premiums and calls for own account CLAIMS INCURRED Gross claims paid - Reinsurance recoveries Gross change in estimated outstanding claims - Reinsurers share Claims incurred for own account OPERATING EXPENSES Acquisition costs Administrative expenses Net operating expenses Balance carried to non-technical account 3 4 4 004 218 609 658 835 883 917 287 731 410 10 379 14 050 24 430 11 362 10 922 22 283 -30 585 -15 612 -30 585 -15 612 NON-TECHNICAL ACCOUNT Balance from technical account INVESTMENT INCOME Investment income Unrealised gains Realised gains/loss on investments Gain sale real estate Total investment income 11 364 -4 417 -8 695 0 -1 748 INVESTMENT EXPENSES Investment management expenses 896 796 4 726 -2 064 -28 503 3 323 100 -13 -28 602 3 337 FOREIGN EXCHANGE ADJUSTMENTS Foreign exchange adjustments Balance before tax on ordinary activities TAXES Taxes Balance carried to contingency reserve 26 13 -9 5 12 21 971 918 011 731 795 BALANCE SHEET AT 20.02.03 All figures in USD 1 000 Note 2002 2001 339 5 565 807 72 636 215 564 294 911 144 3 943 849 69 344 233 912 308 193 12 180 1 481 910 14 571 30 206 0 3 326 33 531 7 2 30 40 7 1 59 69 ASSETS FINANCIAL ASSETS Real estate Mortgages Other loans Shares Bonds Total financial assets 6 6 DEBTORS Members and brokers Reinsurers Other debtors Total debtors 7 OTHER ASSETS Fixed assets Pension assets Cash at bank Total other assets 5 PREPAYMENTS AND ACCRUED INCOME Prepayments and accrued income Total assets 8 370 527 995 892 933 888 696 517 3 120 353 493 2 961 414 202 377 -84 292 50 342 385 -99 285 77 363 LIABILITIES TECHNICAL PROVISIONS Gross provision for outstanding claims Reinsurer's share Provisions for outstanding claims for own account Contingency reserve Technical provisions for own account 10 10 9 10, 11 401 978 424 080 504 PROVISIONS FOR OTHER LIABILITIES Pension liabilities Provision for taxation Total provisions for other liabilities 4 576 33 4 610 CREDITORS Members and brokers Reinsurers Other creditors Total creditors 2 1 2 5 ACCRUALS AND DEFERRED INCOME Accruals and deferred income 12 Total liabilities 255 884 371 873 244 3 962 38 4 000 317 118 142 578 4 5 2 13 965 894 512 371 802 33 586 353 493 414 202 Oslo, 14 May 2003 Helfried Beutner Chairman Nils Aardal Vice Chairman John P. Tavlarios Terje Adolfsen Peter Wilsund Tom E. Jebsen Arne Birkeland Ulf G. Ryder Veli-Matti Ropponen Douglas Jacobsohn President & CEO 27 NOTES All figures in USD 1 000 Note 1 Accounting Policy The accounts are prepared in USD, but in the official accounts for Skuld USD have been converted to NOK and Norwegian language has been used. Furthermore, the accounts have been prepared in compliance with the new regulations from the Norwegian Banking, Security and Insurance Commission. These new regulations are based on EU accounting standards. The USD accounts are based on the official accounts, but some reclassifications have been made to make the accounts more comparable to the accounts of the other P&I clubs. • Provisions for bad and doubtful debts are included in calls and premiums. • Interest on overdue payments is included in calls and premiums • Claims management expenses are included in claims incurred. There are also some deviations from the official accounts in the Notes. BASIS OF ACCOUNTING The accounts are prepared on an annual accounting basis and include the following: • • • • All premiums for policies commencing during the year. The cost of claims incurred and reinsurance for the current year. Any adjustments relating to earlier years. Operating expenses and investment income. CONSOLIDATION The consolidated accounts include the accounts for Skuld Mutual Protection & Indemnity Association (Bermuda) Ltd., and the association’s subsidiaries, Skuld AB, Skuld International Bermuda Ltd., Skuld Bergen AS, Skuld Far East Ltd., Skuld Hellas Ltd., Skuld Re SA, Skuld Re II SA, Alvema SA and APS Generalagenturet for Skuld, Copenhagen. In the accounts, shares in subsidiaries, receivables from and payables to subsidiaries, and transactions between the association and the subsidiaries, have been eliminated. CALLS AND PREMIUMS Calls and premiums include gross calls and supplementary calls, less return premiums and provisions for bad and doubtful debts. These calls and premiums are the total receivable for the whole period of cover provided by the contracts commencing during the accounting period, together with any premium adjustments relating to prior accounting years. The calls and premiums include provisions for estimated future supplementary calls in respect of open policy years. CLAIMS The claims expenses include all claims incurred during the year together with claims management expenses. The technical provision for claims outstanding includes an element of claims incurred but not reported (IBNR). Historical data is used in assessing IBNR. Provision for the cost of claims handling is not included. REINSURANCE PREMIUMS These include premiums payable to market underwriters, charged to the consolidated income and expenditure account on an accruals basis. REINSURANCE RECOVERIES Reinsurance recoveries are accrued to match relevant claims, and include estimated recoveries on estimated outstanding claims. OPERATING EXPENSES Account is taken of accruals and prepayments in arriving at operating expenses. FOREIGN CURRENCY Assets and liabilities have been translated to USD at the rate of exchange on the balance sheet date. INVESTMENTS Account is taken of accrued interest on fixed interest securities and deposits; dividends are credited when receivable. The investments are assessed at market value on the balance sheet date. 28 NOTES All figures in USD 1 000 Note 2 Premiums distributed by country Country Premiums Norway Nordic countries excl. Norway Greece Rest of Europe USA Far East Other Total gross premiums and calls 27 16 7 35 11 9 5 113 270 604 145 645 410 964 264 303 % 24.1% 14.7% 6.3% 31.5% 10.1% 8.8% 4.6% 100.0% Note 3 Net claims incurred 2002 GROSS CLAIM PAID Members' claims Group Pooling arrangements 102 959 9 045 112 004 REINSURERS' SHARE Group Pooling arrangements Market underwriters Other P&I associations 10 861 7 211 146 18 218 Net claims paid 93 786 CHANGE IN PROVISION FOR GROSS CLAIMS Provision carried forward Provision brought forward Change in currency valuation at year end LESS MOVEMENTS IN PROVISION FOR REINSURERS' Provision carried forward Provision brought forward Change in currency valuation at year end 377 -385 -3 -11 401 255 755 609 SHARE -84 978 99 884 -249 14 658 CHANGE IN PROVISION FOR FUTURE CLAIMS Net change in claims provision 3 049 Claims incurred, for own account 96 835 Note 4 Net operating expenses 2002 2001 Administrative expenses 14 050 10 922 Salary, etc. Commissions Other acquisition costs Acquisition costs 3 746 5 794 840 10 379 3 984 6 496 882 11 362 Net operating expenses 24 430 22 283 In accordance with Schedule 3 of the International Group Agreement, the association is required to disclose the Average Expense Ratio for the association's P&I business. The operating expenses include all expenditure incurred in operating the association's P&I business, excluding expenditure dealing with claims and a reasonable allocation of general overhead expenses. The premium includes all earned premium allocated to the policy year of origin. For the five years ended 20th February 2003, a ratio of 11.6% (10.5% at 20th February 2002) has been calculated in accordance with the Schedule and the guidelines issued by the International Group and is consistent with the relevant Financial Statements. 29 NOTES All figures in USD 1 000 Note 5 Fixed assets Fixed assets COST As at 20th February 2002 Purchases in the year Sales / scrapping in the year As at 20th February 2003 14 604 804 -5 046 10 362 DEPRECIATION As at 20th February 2002 Depreciation on sold / scrapped assets Depreciation this year As at 20th February 2003 6 -4 1 2 NET BOOK VALUE As at 20th February 2002 As at 20th February 2003 620 947 319 992 7 933 7 370 Note 6 Financial investments SHARES: Norwegian shares Foreign shares Total shares BONDS: Treasuries Asset Backed Securities Mortgage Backed Securities Corporate Securities Government Agency Securities Cash and Money Market Eurobonds Total bonds 2002 Market value 2001 Market value 127 72 509 72 636 140 69 203 69 344 78 20 48 54 6 7 267 631 264 670 465 266 0 215 564 30 23 67 48 3 25 36 233 185 635 247 578 008 000 259 912 Note 7 Reinsurance debtors Other associations' relating to Pooling agreements Other reinsurance arrangements Total reinsurance debtors 2002 2001 326 1 155 1 481 0 0 0 2002 2001 1 392 1 727 3 120 1 636 1 325 2 961 2002 2001 Note 8 Prepayments and accrued income Accrued interest Other prepayments Prepayments and accrued income Note 9 Contingency reserve Contingency reserve as per 20.02.2002 Balance carried forward to contingency reserve Difference related to subsidiaries Contingency reserve as per 20.02.2003 30 Required Solvency margin Contingency reserve in per cent of required solvency margin 77 873 -28 602 809 50 080 55 400 90.4% 70 3 4 77 151 337 386 873 59 000 132.0% NOTES All figures in USD 1 000 At year end the contingency reserve is USD 5.3 mill under the requirement. In agreement with the Bank, Securities and Insurance Commission, the association has therefore sent an application for temporary exemption of the requirement until the end of the policy year 2003. (Please note that on 4 July the Norwegian Ministry of Finance granted the association a temporary exemption of the requirement until the end of the policy year 2003.) Note 10 Provisions for outstanding claims by Policy year Gross estimated outstanding including IBNR The association's estimated share of other associations' pool-claims including IBNR Gross provision for outstanding claims Estimated outstanding recoveries from: Pooling agreements Group excess loss Other reinsurers' share Total estimated outstanding recoveries Provisions for outstanding claims for own account Contingency reserve Technical provisions for own account 2002 2001 2000 Closed years 59 903 52 934 43 972 175 711 332 520 14 205 74 108 4 811 57 744 6 753 50 726 19 112 194 823 44 881 377 401 0 0 3 903 3 903 7 0 513 519 0 0 4 384 4 384 70 205 -23 794 46 411 57 225 -18 353 38 872 46 342 -11 187 35 155 32 36 7 76 328 279 565 172 118 651 103 414 222 065 Total 32 36 16 84 335 279 364 978 292 423 50 080 342 503 Note 11 Technical provisions for own account 2002 2001 321 433 336 585 53 722 375 155 45 380 381 965 Estimated outstanding recoveries from: Pooling agreements Other reinsurers' share Total estimated outstanding recoveries -12 021 -86 803 -98 825 -54 535 -59 609 -114 145 Provision for outstanding claims for own account 276 330 267 820 16 361 17 404 0 16 361 0 17 404 0 -268 -268 0 146 146 16 093 17 550 292 424 50 080 342 504 285 371 77 873 363 244 P&I Gross estimated outstanding including IBNR The association's estimated share of other associations' pool-claims including IBNR Gross provision for outstanding claims FD&D Gross estimated outstanding including IBNR The association's estimated share of other associations' pool-claims including IBNR Gross provision for outstanding claims Estimated outstanding recoveries from: Pooling agreements Other reinsurers' share Total estimated outstanding recoveries Provision for outstanding claims for own account TOTAL P&I AND FD&D P&I and FD&D Contingency reserve Technical provision for own account 31 NOTES All figures in USD 1 000 Note 12 Accruals and deferred income Purchase price Skuld Re II SA and Alvema SA Other accruals Accruals and deferred income 2002 2001 0 802 802 32 664 922 33 586 Note 13 Off-balance sheet items GUARANTEES Bank Guarantees and "Club Letter of Guarantees" amounting in total to USD 254.3 mill have been issued in connection with claims, of which the latter makes up by far the greater part. The face values of these guarantees greatly exceed the expected payments from the related claims. The expected payments from these claims are fully covered in the provisions made for outstanding claims The association has entered into a 10 years lease period for the Oslo office building. CURRENCY FORWARDS On 20 February 2003, 2.5 mill. GBP/USD was sold forward for settlement on 20 March 2003. FUTURES CONTRACTS Security Description UST 10YR FUTURE MAR 03 UST 2YR FUTURE MAR 03 UST 2YR FUTURE JUN 03 5 YR US TR NT MAR 03 5 YR UST NT FUTURE JUN 03 UST 10YR FUTURE JUN 03 MAR 10YR NOTE FUTURE TY MAR 2YR NOTE FUTURE TU MAR 5YR NOTE FUTURE FV MAR 2YR NOTE FUTURE TU Maturity Date 31.3.03 31.3.03 30.6.03 31.3.03 30.6.03 30.6.03 20.3.03 27.3.03 19.3.03 27.3.03 Shares 10 13 24 18 43 24 25 -4 73 -3 Historic Cost 1 145 2 764 5 150 2 007 4 843 2 718 2 768 -850 8 054 -639 27 960 Market Value 1 157 2 804 5 156 2 046 4 856 2 744 2 893 -863 8 296 -647 28 442 Unrealized Gain/(Loss) 12 40 6 39 13 26 124 -13 242 -8 481 Note 14 Financial risk Interest and currency risks are integrated in the Asset-Liability Management. Principally, asset- and liability exposure are matched, facilitating immunisation where changes in assets value are accompanied by a corresponding change in the present value of future claims payments. Interest sensitive investments are managed around a constant duration, fixed at the weighted claim duration of 2.1 years. Futures contracts on US Treasury bonds are used to extend or shorten the duration as needed. The currency mix of liabilities is attempted matched with a similar amount of assets. Derivative contracts (swaps and forwards) are used to improve the matching. The stock portfolio is managed passively, benchmarked against the Morgan Stanley All Country World Index. This implies a risk profile consistent with the global stock market, without overweight towards specific sectors, countries or regions. 32 NOTES All figures in USD 1 000 Note 15 Policy year statement by class as at 20.02.03 P&I Advance calls, releases and other gross premiums charged in: years to 20th February 2002 year to 20th February 2003 2002 2001 2000 0 106 421 106 421 96 798 0 96 798 108 332 0 108 332 0 0 0 27 0 27 28 390 0 28 390 Supplementary calls levied in: years to 20th February 2002 year to 20th February 2003 Total calls and premiums Reinsurance premiums Claims incurred net of reinsurance recoveries 106 -24 82 -84 -2 421 330 091 703 612 96 -18 77 -94 -17 825 882 943 952 009 136 -23 113 -111 1 722 595 127 563 564 Net operating expenses Net investment income Taxes -22 568 1 891 0 -19 072 17 886 0 -24 414 13 040 0 Total P&I -23 289 -18 196 -9 810 2002 2001 2000 0 4 952 4 952 5 263 0 5 263 5 389 0 5 389 0 0 0 0 0 0 907 0 907 0 0 0 4 952 -260 4 692 -3 911 781 5 263 -221 5 042 -4 938 104 6 296 -254 6 042 -6 795 -753 -1 378 92 0 -1 275 1 015 0 -1 164 540 0 -505 -157 -1 377 -23 794 -18 353 -11 187 FD&D Advance calls, releases and other gross premiums charged in: years to 20th February 2002 year to 20th February 2003 Supplementary calls levied in: years to 20th February 2002 year to 20th February 2003 Estimated supplementary calls Total calls and premiums Reinsurance premiums Claims incurred net of reinsurance recoveries Net operating expenses Net investment income Taxes Total FD&D Total P&I and FD&D Calls and premiums, reinsurance premiums, claims and commission to brokers are allocated to the policy year to which they relate. Operating expenses and investment income have been allocated to the policy year corresponding to the accounting year. Investment income, in policy year 2001, included a profit on the sale of real estate in Oslo of USD 12.7 mill. Supplementary call is included in the policy year 2000 with USD 29.3 mill. 33 NOTES All figures in USD 1 000 Note 16 Policy year statement as at 20.02.03 - Mutual and Fixed business 2002 MUTUAL Total calls and premiums Reinsurance premiums Claims incurred net of reinsurance recoveries 82 -15 66 -70 -4 462 999 464 512 049 2001 78 -14 63 -74 -10 282 613 669 125 456 2000 117 -18 99 -105 -6 609 368 240 506 266 Net operating expenses Net investment income Taxes -18 014 1 610 -76 -15 997 15 470 11 -20 787 11 107 -58 Total Mutual Business -20 530 -10 972 -16 004 2002 2001 2000 FIXED Total calls and premiums Reinsurance premiums Claims incurred net of reinsurance recoveries 28 -8 20 -18 2 910 591 319 101 217 23 -4 19 -25 -6 806 490 316 766 450 25 -5 19 -12 7 409 481 928 852 076 Net operating expenses Net investment income Taxes -5 931 472 -23 -4 351 3 417 3 -4 791 2 545 -13 Total Fixed Business -3 265 -7 381 4 817 -23 794 -18 353 -11 187 Total Mutual and Fixed business Calls and premiums, reinsurance premiums and claims are allocated to the policy year to which they relate. Commission has been allocated to the respective policy year. Other operating expenses have been allocated to the policy year corresponding to the accounting year. Net investment income has been allocated to the policy year corresponding to the accounting year. Investment income, in policy year 2001, included a profit on the sale of real estate in Oslo of USD 12.7 mill. Supplementary call is included in the policy year 2000 with USD 29.3 mill. 34 AUDITOR'S REPORT FOR 2002/2003 Translation from the original Norwegian version This is a translation from the original Norwegian version. For this reason there is no signature. 35 MANAGEMENT Douglas Jacobsohn President & Chief Executive Officer Tor Erik Andreassen Chief Operating Officer Arthur Pilkington Executive Vice President, Defence Services & Emergency Response Svein Sollund Chief Financial Officer Ellen Haugom Senior Vice Precident Human Resources & Office Administration Eric Jacobs Executive Vice President, Marketing & Communication and General Counsel Dan Lennhammer Executive Vice President Claims & Technical Services THE BOARD OF DIRECTORS Helfried Beutner, Chairman RIGEL Schiffahrts GmbH & Co. KG Arne Birkeland A/S Billabong Thomas Bjørn Larsen Skuld (employee representative) John P. Tavlarios General Maritime Corporation Nils Aardal, Vice Chairman J.O. Odfjell AS Kjeld B. Horn Skuld (employee representative) Veli-Matti Ropponen Fortum Oil & Gas Peter Wilsund Rederiet A.P. Møller Terje Adolfsen Bergesen d.y. ASA Tom E. Jebsen Frontline Management A/S Ulf G. Ryder Stena Bulk AB Bernt Wold Skuld (employee representative) 36 THE COMMITTEE Erik Gløersen, President Jahre, Dahl Bergesen AS Ulrich Niebusch German Tankers Shipping Wang Chun Lin, Vice President Worlder Shipping Limited Jan-Eric Nilsson Rederi AB Gotland Harald Andresen Fred.Olsen & Co. Karl-Erik Nitter Foss Star Shipping AS Capt. Cemil Bayülgen UND Ro Ro Isletmeleri AS Pericles S. Panagopoulos Attica Enterprises Holdings SA Jørgen Dannesboe Armada Shipping SA Børge Rosenberg A/S J. Ludwig Mowinckels Rederi Chen Jing De Cosco Container Lines Trygve Seglem Knutsen OAS Shipping A/S Kaj Engblom Rederi AB Engship Ole B. Stene Barber International (USA) Inc Knut Atle Ertsland Continental Ship Management AS John F. Staal Clipper Denmark A/S. Jens Fehrn-Christensen Dampskibsselskabet ‘’Norden‘’ AS Capt. Sergei A. Terekhin SOVCOMFLOT Tan Chin Hee Pacific Carriers Ltd. Felix H. Tschudi Tschudi & Eizen Holdings A/S Klaus Kjærulff Dampskibsselskabet TORM A/S Hans Petter Westfal-Larsen Westfal-Larsen Management AS Dick H. Lundqvist Lundqvist Rederierna AB Jia Hong Xiang China Shipping Container Lines Co. Ltd Capt. Alexander S. Migunov Sinchart Shipping Pte. Ltd SKULD OFFICE ADDRESSES Assuranceforeningen SKULD (Gjensidig) Assuranceforeningen SKULD (Gjensidig) Skuld Hellas Ruseløkkveien 26, Oslo, Norway ved Den Danske Afdeling Filellinon 1-3, Mailing address: Frederiksborggade 15 P.O. Box 80112 P.O. Box 1376 Vika, 0114 Oslo, Norway DK-1360 Copenhagen K, Denmark GR-185 36 Piraeus Telephone: +47 22 00 22 00 Telephone: +45 33 43 34 00 Telephone: +30 210 459 4190 Telefax: +47 22 42 42 22 Telefax: +45 33 11 33 41 Telefax: +30 210 459 4194 Emergency phone: +47 952 92 200 Emergency phone: +47 952 92 200 Telex: (601) 212498 SKLD E-mail: [email protected] E-mail: [email protected] Emergency phone: +47 952 92 200 Skuld Bergen AS Skuld (Far East) Ltd. Nedre Ole Bulls plass 3 Room 2909, China Resources Building Mailing address: 26 Harbour Road, Wanchai, Hong Kong P.O. Box 75, 5803 Bergen, Norway Telephone: +852 2836 3909 Telephone: +47 55 30 18 60 Telefax: +852 2836 3219 Telefax: +47 55 30 18 70 Telex: (802) 69571 SKULD HX Emergency phone: +47 952 92 200 Emergency phone: +47 952 92 200 E-mail: [email protected] E-mail: [email protected] E-mail: [email protected] Organisation number: NO 938419531 MVA The Annual General Meeting will be held at 1500 hours 4 September 2003 at Norges Rederiforbund (Norwegian Shipowners’ Association) Rådhusgt. 25, Oslo, Norway. COBRA AS. PHOTO: OLE WALTER JACOBSEN AND GETTY IMAGES. PRINT: NETWORK www.skuld.com Annual report 2002 Going the extra mile
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