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OIL posts $781m profit in 2010

Oil Insurance Ltd (OIL) recorded net income of $781.8 million last year, the Bermuda-based energy industry mutual insurer revealed yesterday.

OIL was not hit hard by the Deepwater Horizon oil rig loss in the Gulf of Mexico last April, because its member companies do not include the Macondo well owner BP, or rig operator Transocean.

Robert Stauffer, OIL's president and chief executive officer, said: “The fact that the company did not suffer any losses from 2010 hurricane activity was a highlight and enabled the company to focus on dealing with expected losses.

“At the same time, the company was able to finalise, and pay, the remainder of the outstanding loss payments from hurricanes Katrina and Rita.”

OIL had $783.7 million of written and earned premium last year while incurred losses totaled $422.7 million. Inclusive of loss adjustment expenses, OIL's net underwriting income was $361.8 million. Net investment income was $435.7 million.

“In nearly 40 years of existence, OIL has grown to the point of insuring nearly $2 trillion of member's global assets, which is secured by over $3.2 billion in shareholder's equity with company total assets at year end standing at $5.9 billion,” Mr Stauffer added.

George Hutchings, senior vice-president and chief operating officer, said: “With the successful implementation of the changes to our windstorm coverage and the Rating & Premium Plan, the internal operational issues that the company faced in 2009 are considered addressed and resolved. The time is right to focus on external-facing initiatives with a view to growing our membership; a strategic goal which our membership survey indicates is keenly supported by our shareholders.

“2010 marked OIL's renewed focus on marketing activities to attract new global members. OIL devised a multi-pronged marketing approach that we believe will strengthen the Company's relationship with our existing members, attract new quality members to the organisation and advance our relationship with the insurance broker community.

“To date, our marketing efforts have been well received and we intend to continue executing this plan through 2011 and beyond. After the Macondo incident, OIL is also very well-positioned to help provide an anticipated increase in coverage requirements to those who are not presently members.”

OIL held its held its 2011 Annual General Meeting (AGM) last Wednesday at the Fairmont Southampton Hotel.

Shareholders voted on a new slate of directors for the 2011-2012 year. Trygve Imsland was re-elected as chairman of the board while Mark Wilson was re-elected vice-chairman.

Useful website: www.oil.bm

OIL chief operating officer George Hutchings

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Published March 29, 2011 at 10:28 am (Updated March 29, 2011 at 10:27 am)

OIL posts $781m profit in 2010

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