sEnergy Insurance Ltd., a Bermuda-based mutual insurer providing business interruption and property damage insurance to energy companies, won?t sell any more policies after May 15, it said in a press statement last night.

sEnergy cited economic reasons, based on a change in energy market conditions, for its decision to exit business.

It isn?t known how many employees sEnergy has. An insurer that closes to new business ? called run-off in industry parlance ? usually keeps a bare minimum of staff for as long as is necessary to honour claims being lodged on policies already sold.

sEnergy shareholders have until August 1 to submit any notice of possible claims, the company?s e-mailed statement said. No one at sEnergy could be reached for additional comment following the statement?s release just after 5 p.m.

sEnergy, founded in May 2002 as part of the Oil Group of Companies, faces potential losses from last year?s two worst hurricanes ? Katrina and Rita. Both storms ravaged the US Gulf Coast region, which is home to numerous oil refineries and drilling platforms. The company?s statement didn?t specify if the energy market conditions that led to their decision to bow out of the market were related to last year?s storms.

sEnergy?s inability to make a secured claim if a member company declared bankruptcy in recent weeks called into question the insurer?s subordinated debt rating. The rating was downgraded in March by one notch to Baa3 from Baa2, and was being kept on watch for a further downgrade by ratings firm Moody?s Investor services.

sEnergy?s financial strength rating from Moody?s was also put on watch for a possible downgrade last month. A financial strength rating is a measure of a rating firm?s assessment of an insurer?s ability to meet claims on contracts sold. No one at Moody?s could last night be contacted for comment on sEnergy?s pending exit from business.