sEnergy Insurance Ltd., a Bermuda-based mutual insurer that is part of the Oil Group of Companies, won?t be laying off any staff as a result of its decision to close down.

George Hutchings, senior vice-president and chief operating officer, said the company?s staff won?t be displaced because they already help run the group?s other two companies ? Oil Insurance Limited and Oil Casualty Insurance Limited.

On Monday night sEnergy announced its intention to close to new business, as of May 15. The insurer, which was formed in 2002 to provide business interruption and property damage coverage to energy sector companies, said changing market conditions meant it no longer made economic sense to stay in business. An insurer that closes to new business, generally stays open with a skeleton staff to be able to honour claims on any outstanding policies. In industry parlance, the process is referred to as a ?run off?.

The nature of sEnergy?s business is short-tailed, or claims are generally filed and settled within a year or two. Mr. Hutchings estimated the company?s run-off should be wrapped up by some time in 2007.

Mr. Hutchings said sEnergy is in a position to, and will, honour all its obligations.

The company is currently rated by Moody?s Investor Services, in connection with the company?s capital facilities. Once those expire, sEnergy will no longer seek a rating, Mr. Hutchings said.