1 April 2014 Insurance

OIL Insurance returns $300m to members

OIL Insurance, the Bermuda-based mutual that provides a mixture of coverages for 56 members mainly from the energy sector, has reported stable results in 2013 and voted to return some $300 million to its members in the form of a dividend.

In 2013, OIL underwrote some $550 million of premium, a drop on the $672.4 million it wrote in 2012. This generated $53.2 million of underwriting income compared with $59.6 million the year before. After factoring in net investment income and administrative expenses, OIL's net income for the year was $631.9 million, a small drop on the $646.1 million it wrote a year earlier.

Robert Stauffer, the mutual’s chief executive, said that the business was committed to providing long-term value to its membership by offering significant policy limits with broad terms and conditions and returning excess value when appropriate as well as potentially considering additional coverages to enhance the overall value proposition of being a member.

During the company’s annual general meeting, shareholders also voted to accept a proposal, called Experience Modification, whereby shareholders' future premium levels will be adjusted based upon their loss experience in OIL.

George Hutchings, OIL’s chief operating officer, said: “This vote sends a clear message to the energy insurance industry that the inclusion of Experience Modification in the Rating & Premium Plan greatly enhances OIL's overall value proposition for both current members and potential prospects.”

The business also elected Gerard Naisse as chairman of the board and Roberto Benzan as deputy chairman.

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