Solvency and financial condition report 2024

TT Club Mutual Insurance Limited’s Solvency and Financial Condition Report (SFCR) for the year ending 31 December 2024 presents the Group’s solid financial resilience despite a challenging insurance market. Operating as a specialist mutual insurer in the global transport and logistics industry, TT Club provides liability and asset insurance alongside tailored risk management solutions.

Business performance & strategy

In 2024, the Club recorded gross written premiums of US$ 283.1 million (2023: US$ 289.2 million), with a modest reduction driven by competitive market dynamics and net lost business. While organic growth on Member renewals was stable, the underwriting result showed a consolidated deficit of US$ 27.7 million, reflecting increased claims costs and lower premium volumes. Notably, the combined ratio rose to 112% (2023: 105%). However, strong investment returns of US$ 34.2 million, achieved via a conservative, liability-driven investment strategy, offset some operational losses.

TTI Solo, the UK-regulated entity, posted a smaller underwriting deficit of US$ 3.1 million. The Club’s capital strength remains robust under Solvency II, with TT Club’s eligible own funds exceeding regulatory requirements. TT Club achieved a solvency ratio of 211%, well above the minimum required, ensuring security for policyholder Members.

The Club’s business strategy emphasises providing superior claims handling, risk management expertise, and cost-effective insurance products, particularly for key sectors like transport & logistics operators cover, cargo handling facilities cover, and efficient claims management & digital services.

Key geographical markets include the US, UK, Hong Kong, Australia, Spain, and China, collectively representing over half of the Club’s business. The Club remains committed to sustainability and technological innovation, aiming to enhance safety and security across the transport and logistics sector.

Key Takeaways

TT Club remains financially secure with a 211% Solvency II ratio.
Underwriting deficit impacted by increased claims and market pressures.
Strong investment income underpins overall financial stability.
Strategic focus on superior service and risk management for Members.
Continued investment in digital transformation and sustainability.

Frequently asked questions

What lines of business does TT Club underwrite?
TT Club insures marine, aviation, transport, general liability, fire/property damage, and motor vehicle liability, focusing on the global logistics and transport industry.

How does TT Club manage underwriting risk?
Through detailed risk appetites, reinsurance protections, and ongoing actuarial reviews to mitigate large claim exposures and ensure financial resilience.

Why did the combined ratio increase in 2024?
Higher claims costs and reduced premium income contributed to the increase in the combined ratio to 112% from 105% in 2023.