Bermudian-based Oil Casualty Insurance Ltd has reported a net loss for the 2018 fiscal year of $39 million, breaking a string of seven consecutive years of net profits.

The mutual insurer of shareholders in the energy industry said the loss was principally driven by unrealised losses in the company’s investment portfolio.

The company reported written premium of $239 million for the year ended November 30, 2018, an increase of $22 million from the year prior.

Shareholders’ equity, Ocil said, stood at $507 million as of November 30.

Bertil Olsson, chief executive officer, said: “An overabundance of capacity and a challenging investment market coupled with several loss events in 2018 resulted in a loss for the year.

“With improved underwriting and investment conditions, we expect to return the company to positive income this year.

“We can see that our diversification strategy has reaped benefits by balancing losses in our direct P&C operations with favourable underwriting profit in the assumed reinsurance division.”

Jerry Rivers, senior vice-president and chief operating officer, said: “Despite a slight underwriting loss of $6.3 million, Ocil grew the number of property insureds and assumed reinsurance treaties during the year at better terms than expiring.

“Further, Ocil did not renew the wildfire liability policies covering the major utilities in California during 2018. Therefore, we should not be materially impacted by the 2018 fires in California.

“We continue to see improvement in the operating environment and a strong interest in Ocil in both the direct and reinsurance markets.”

At the company’s annual general meeting in Bermuda, shareholders were provided with an update on the company’s underwriting operations, reviewed and approved the 2018 annual financial statements, and elected directors.

Following the AGM, Ocil’s board of directors appointed Roberto Benzan as chair of the board and Lars Ostebo as deputy chairman.

Domiciled in Bermuda, Ocil is a provider of excess property and liability insurance to a broad array of industries with a focus on the energy industry, the company said. Ocil also underwrites casualty, property and specialty treaty reinsurance.