<Press Release> Summary of Financial Statements for the 2023 Business Year
To the Members
We are pleased to announce our summary of financial statements for the 2023 business year.
The business year from 1 April 2023 to 31 March 2024 (“this year”) was marked by increased global instability despite the end of the COVID-19 pandemic. This instability stemmed from Russia's invasion of Ukraine, the Israel-Hamas war, and the attacks on commercial ships by the Houthi armed group which led to ships avoiding navigating through the Red Sea.
The Japan P&I Club successfully improved its insurance business balance of income and expenditure through the measures we have taken to date. To continue providing stable insurance, we raised the overall level of insurance premiums and strengthened our financial base. As a result, our ordinary surplus increased by JPY5.82 billion from the previous year to JPY9.36 billion, and the surplus after income taxes was JPY6.86 billion. The details are as follows.
Insurance Premiums
In terms of premium income, we have applied a general increase of 7.5% for ocean-going owners’ entries and 10% for Charterers’ entries for the policy year 2024, as well as a general increase of 10% for Naiko Class entries. Additionally, as originally planned, we have collected supplementary calls of 40% for the policy year 2022. This was necessary to continue building a stronger financial foundation amid an uncertain business environment due to ongoing global inflation, increased reinsurance costs, and heightened war risks, notably the Russia-Ukraine conflict.
Net insurance income, the amount remaining after deducting reinsurance premium from incoming premium, or “insurance income”, decreased by JPY5.47 billion to JPY24.84 billion. This decrease is mainly due to two factors: a decrease in insurance income to JPY33.43 billion, down by JPY4.89 billion from the previous year when unbudgeted supplementary calls were collected, and reinsurance premiums rising by JPY580 million to JPY8.58 billion.
Investment Income
Investment income increased by JPY4.75 billion to JPY8.04 billion. This increase includes JPY4.43 billion from a foreign exchange gain due to the weaker yen, JPY2.04 billion from a gain on money held in trust, and JPY1.57 billion in interest and dividend income.
Insurance Claims
The Club had one pool claim over USD10 million and one claim between USD3 million and USD10 million for ocean-going owners’ entries. Additionally, there was one claim over JPY300 million and four in the range JPY100 million to JPY300 million for Naiko Class entries (Japanese coastal vessels). Added to all this was an increase in payments for claims which occurred in previous years.
Consequently, net insurance claims payments increased by JPY940 million to JPY16.28 billion. Insurance claims payments rose by JPY7.72 billion to JPY33.38 billion, and reinsurance recoveries increased by JPY6.78 billion to JPY17.1 billion.
Net Assets
「Net assets increased by JPY7.19 billion to JPY23.63 billion.
Reserve
As a result of the above, we have significantly increased the reserve, which is an indicator of financial soundness, by JPY7.94 billion from the previous year to JPY35.37 billion.
The income and expenditure account is summarised as follows.
(Unit: JPY Billion) | |
Accounts | Amount |
Underwriting Income | 23.11 |
Investment Income | 8.0 |
Other Income | 0.72 |
Underwriting Expenses | 17.51 |
Operating Expenses | 3.89 |
Other Ordinary Expenses | 0.33 |
Provision for Catastrophe Reserve | -0.75 |
Special Income | -0.01 |
Net Surplus Before Taxes | 9.34 |
Corporate Income Taxes etc | 2.48 |
Surplus After Income Taxes | 6.86 |
Yours faithfully,
Japan P&I Club