Bermuda-based Oil Insurance is to pay a $200 million dividend to its members.

The cash, to be paid out at the end of the month, is in addition to the $200 million it gave back to members at the end of March.

The mutual insurer for the energy industry said the cash returns were “based on Oil’s strong capital position and the company’s robust capital management plan”.

Roberto Benzan, chairman of Oil, said: “The $200 million dividend demonstrates the board’s commitment to return value to Oil’s shareholders when it is prudent to do so.”

A statement by Oil said: “In addition to the dividend decision, the board authorised management to proceed with the implementation of its 2016 strategic plan that encompasses the following key areas of its operations — product offering, member services and marketing and distribution.”

The final plan will be shared with Oil membership at its March 2017 annual general meeting.

Mr Benzan said: “The newly authorised strategic plan is designed to further advance and accentuate Oil’s unique value proposition for our shareholders and I look forward to its implementation.”

Oil insures more than $2.9 trillion of global energy assets for more than 50 members with property limits up to $400 million totalling more than $19 billion in total A-rated property capacity.

Members are medium to large-sized public and private energy firms with at least $1 billion in physical property assets and an investment grade rating or equivalent.