OCIL ‘disappointed’ with 2020 underwriting performance; GWP up by $188m
Oil Casualty Insurance (OCIL), a provider of excess property and liability insurance to companies focused on the energy industry, reported a hike in gross written premiums for the year ended November 30, 2020. The company admitted it was “disappointed” with its underwriting performance but noted that this had improved on the prior year.
As at November 30, 2020, OCIL reported gross written premiums of $561 million, compared to $372.9 million in 2019. For the year, OCIL reported net profit of $3.8 million, turning around a $546,000 loss in 2019.
The company held its annual general meeting of shareholders from Bermuda by videoconference on April 21, 2021. Bertil Olsson, president and chief executive officer, said: “2020 was a busy year. The company executed on its strategic initiative to expand our customer base by creating a new subsidiary to provide excess liability insurance to US based energy companies.”
He added: “As of January 1, 2021, OCIL Specialty, our Bermuda based Class 3A insurance company, is listed on the National Association of Insurance Commissioners list of alien insurers with an AM Best rating of A-. With improving underwriting conditions, OCIL is well positioned to generate positive underwriting results as we move forward.”
Jerry Rivers, vice president and chief operating officer, said: “Although we are disappointed with our 2020 underwriting performance, it was a $22 million dollar improvement over the prior year. The company made great progress in 2020 increasing risk adjusted rates in our property and liability portfolios. We also scaled up our top line revenue in our assumed reinsurance business by nearly 65 percent. Most importantly, while many insurers reduced the limits they provide to energy clients, OCIL delivered on its value proposition by maintaining its maximum available limits. The addition of OCIL Specialty will enhance the company’s product offerings to smaller US energy companies that typically do not access insurance coverage in Bermuda.”
Following the annual general meeting, the OCIL board of directors appointed John Weisner as chairman of the board and John Talarico as deputy chairman.
OCIL provides excess property and liability insurance to a broad array of industries with a focus on the energy industry. It also underwrites casualty, property and specialty treaty reinsurance. Energy operations insured by OCIL include exploration and production, refining and marketing, pipelines, petrochemicals, electric/gas utilities, mining and integrated energy companies.
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