TT Club slips into deficit

It disclosed a small net deficit of $5.3m, after a recent run of surpluses including $8.3m the previous year. Some $3m of the deficit was accounted for by exceptional items including the cost of moving across the City to a new headquarters in Fenchurch Street, and redundancies.

The club said that premium rates declined, and claims rose, driving up reinsurance costs. As in 2007 there was a noticeable increase in frequency and cost, especially from port and terminal members. It pinpointed bodily injury claims, and incidents involving high value handling equipment. In almost every case the underlying cause was said to be human error. Even so, total claims net of reinsurance finished slightly below the 2007 level.

Ports and terminals remains a key area for the club, especially on the liability side, but it is keen to attract more members from the transport and logistics areas. Its 2009-2011 business plan includes reduced exposure to property catastrophe, and reduced dependence on reinsurance, through retaining more risk.