We are pleased to announce our summary of financial statements for the 2022 business year.

The 2022 business year continued to be marked by the COVID-19 pandemic, although economic activity returned to normal as people looked towards a post-COVID future. The year was also affected by rising prices, supply chain disruptions caused by the efforts to bring COVID under control, and the impact of wide-ranging economic sanctions on Russia.

In the previous fiscal year, the Association recorded a net loss, resulting in a significant decrease in the reserve. In the current fiscal year, the highest priority was placed on improving income and expenditures to achieve a stable surplus. As a result, the surplus increased by JPY2.94 billion from the previous year to JPY3.54 billion, and the net surplus was JPY4.65 billion. This sum included an extraordinary gain of JPY1.16 billion from the sale of the head office building. The details of each item are as follows.

Insurance Premiums
In terms of premium income, we applied a general increase of 10% for ocean-going vessels, Charterers’ entries, and FD&D covers in the 2023 policy year renewal. As for Naiko class entries, the total premium increased by 15% after Members’ rates were adjusted to reflect their individual claims records. These increases were made to improve the balance of income and expenditure and ensure the soundness of the financial base. As for ocean-going vessels insurance, we also collected 40% of supplementary call for 2021 policy year as originally planned. Additionally, we collected unbudgeted supplementary calls, which were 25% of advance calls for each of the 2020 and 2021 policy years when there were significant deteriorations in loss records.
As a result, net insurance income increased by JPY13.5 billion from the previous year to JPY30.31 billion.

Investment Income
The investment income decreased by JPY160 million to JPY3.23 billion. The main breakdown is interest and dividend income of JPY790 million and foreign exchange gains of JPY2.5 billion due to the weaker yen.

Insurance Claims
Insurance claims payments decreased by JPY2.34 billion to JPY25.66 billion because of a decrease in COVID-19 related claims and despite the occurrence of two pool claims in excess of US$10 million. Net insurance claims payments decreased by JPY2.29 billion from the previous year to JPY15.34 billion.

Net Assets
Net assets increased by JPY4.41 billion to JPY16.44 billion.

Reserve
The reserve, an indicator of financial soundness, increased by JPY5.32 billion to JPY27.44 billion, recovering from a large decline in the previous year.

The Income and Expenditure Account summarised in the major items is as follows.