Consultancy: breaking down a Portfolio Management Report

By Megan Lyons - January 12, 2021

A Concirrus portfolio management report assesses both the current and historic health of a portfolio to identify opportunities for growth through actionable insight. It’s created by technical consultants that leverage the vast data lake behind Quest Marine. The application of behavioural insight and technical expertise can help further understanding of where to invest resources and improve operational performance. The report contains 6 sections, all of which are customisable around a client’s specific needs and focus on associated trends. An outline of each section is explored below with an extract for reference.



The first section analyses the long-term performance of a clients portfolio. It outlines the growth in policies over the past 10 years, as well as loss ratios, to give a strong indication of positioning. The total loss ratio can be broken down into attritional and large losses to give insight into their influence. A comparison of current positioning vs target loss ratio outlines performance discrepancies and the level of growth required from potential opportunities.


PortfolioFig1: An example breakdown of loss ratio’s over the past 10 years




The second section focusses on trends relating to claims over the past 10 years, specifically those relating to claim type and vessel type. By quantifying claims over time, we can identify the geographical areas that are indicative of specific risk types. A view on how the average claim has evolved within the past five years, as well as the number of claims per 100 vessels, indicates whether there is a growing cause for concern.


risk Fig2: An example of changing risk per region 



Portfolio composition

This section outlines the changing nature of written business, splitting policies and vessels within a portfolio by risk score across 3 years. The example in Fig 3 shows an increase in high risk policies written year on year. These graphs are accompanied by the top 5 influential factors for the portfolio, showing the relative impact of behaviour on business. Combining risk score over time with both vessel type and areas of operation gives a strong outline of performance.




Fig 3: Change in policy composition of a portfolio over a three-year period



Broker performance

Highlighting the top 10 Brokers by premium gives an understanding of which relationships to grow, and how others can improve. Premium vs claims over the past 3 years uncovers those that are most consistent in the type of business presented. A financial perspective is balanced with a look at risk score, outlining the quality of business through the risk associated with a Brokers total accounts.

The type of business previously provided by the top 10 Brokers is split into categories of high, medium, and low risk. With this breakdown, it’s clear to see if a Broker is seeing high claims due to the fact that the business they provide is itself high risk. On request, this can be replicated for Underwriter performance.


Broker 1Fig 4: Example of Broker premium vs claims analysis


Financial analysis

The final 2 sections of the report focus on pricing adequacy, ranking accounts from most profitable to least profitable. To determine adequacy, the charged premium is compared to a suggested premium that utilises an expected loss value, brokerage, profit load and expenses.

The top 5 profitable and unprofitable accounts are assessed to understand which behaviours have the greatest impact on profitability. This assessment compliments Quest as it actively compares accounts within the portfolio for commonalities. Understanding the nature of such risk allows for measures to be taken at renewal, such as a reduction in line size for unprofitable accounts, or an increased participation where accounts are performing well.

If you’re interested in seeing how a Portfolio Management report, additional consultancy, or Quest Marine can benefit your business, get in touch!


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