Mutual insurer Oil Insurance Ltd returned $450 million to its shareholders in the form of a dividend after making more than half a billion dollars of net income last year.

The energy insurance specialist held its Annual General Meeting at the Fairmont Southampton last Thursday and reported that it made an underwriting loss of $71.3 million.

After factoring in net investment income and administrative expenses, Oil’s net income for the year was $587.7 million.

At the meeting, it was announced that the board of directors had declared a total dividend of $450 million for shareholders on record as of January 1, 2018 payable on or before June 30, 2018 in recognition of Oil’s continued financial success and solid financial condition.

Shareholders also approved a minor change to the shareholders agreement that focused on the application of the company’s eligibility rules.

Bertil Olsson, Oil’s chief executive officer, said: “Oil’s strong performance in 2017 allowed the company to return value to our shareholders through a substantial dividend for the fifth straight year.

“Providing long-term value to its membership in the form of significant policy limits with broad terms and conditions, returning excess capital when appropriate as well as adapting as our members’ needs defines Oil’s unique value proposition.”

George Hutchings, senior vice-president and chief operating officer, said: “I am very pleased with the progress the company has made executing the strategic plan during the year.

“It undoubtedly will help position us for the future. As an example and during 2017, the board approved the introduction of the renewables sector, which will allow the company to adapt to and embrace the significant investments its members are making in this segment of the energy industry.”

Roberto Benzan, Oil’s outgoing chairman, added: “The $450 million dividend demonstrates the board’s commitment to return value to Oil’s shareholders when it is prudent to do so. “Oil is firmly footed on a tremendously strong foundation established over its 46-year history. Over that time frame, the company has steadfastly focused on shareholder value and will continue to do so in the years ahead.”

The board elected Theodore Guidry II as chairman and Fabrizio Mastrantonio as deputy chairman for 2018.

Oil Insurance insures more than $3 trillion of global energy assets for more than 50 members with property limits up to $400 million.