The specialist Bermuda-based energy mutual wrote and earned $550.4m of premium in 2013, down $122.1m compared with the previous year. With losses during the year amounting to almost $495.1m, OIL was left with net underwriting income of more than $53.2m.
In 2012, losses were higher at just over $612.5m but the greater level of written and earned premium meant OIL was left with an underwriting return of $59.6m.
However, OIL’s 2013 net investment income of $599.4m meant the operation posted net profit of almost $631.9m. In 2012, OIL ended the year with net profit of $646.1m on the back of net investment income of $607.9m.
The impressive end of year result means OIL’s shareholders will benefit from a dividend which totals $300m in the aggregate amount. Those shareholders on record as of January 1, 2014 will receive their share of the $300m on April 30 later this year.
OIL’s newly elected chairman, Gerard Naisse, said the dividend demonstrates the board’s commitment to return value to its shareholders. Last year, OIL handed shareholders a $100m premium credit and that was after the company increased policy limits to $300m in 2012.
“Oil Insurance Ltd is committed to providing long term value to its membership by offering significant policy limits with broad terms and conditions,” said Robert Stauffer, OIL’s president and chief executive.
“Returning excess value by way of premium credits and dividends when appropriate as well as potentially considering additional coverages to enhance the overall value proposition of being a member.”