Bermuda-based mutual energy insurer sEnergy said its underwriting income for the 2004 fiscal year ended June 30 $38.4 million while net income stood at $11.9 million.

In addition, investment income increased total capital of sEnergy and its subsidiaries by $15 million for the fiscal year. Statutory capital at year-end was $614.6 million, an increase of $79.7 million over the prior period.

Meanwhile, sEnergy announced that it will pay a special dividend to its members/shareholders.

The total dividend of $2.4 million will be distributed to shareholders based on their equity interest in the company at the end of the period.

sEnergy is a licensed Bermuda insurer established more than two years ago to provide business interruption insurance, excess property damage and pollution liability insurance to its member companies.

sEnergy was formed in response to the shortage in capacity that resulted from the deterioration of profitability in the property and casualty insurance business.

sEnergy provides limits of up to $200 million per occurrence for the coverages that it writes.

The company was formed and capitalised by a group of international energy companies with investments from Oil Insurance, Ltd. (OIL) and Oil Casualty Insurance Ltd. (OCIL).

President and CEO Jack Wesley, who it was announced will retire next year, said: ?The fiscal year 2004 was an excellent year for the company; membership grew by 23 percent with the addition of BHP Billiton Petroleum (Americas) Inc., OMV Aktiengesellschaft and Koch Industries, Inc. and we were fortunate that no claims were presented to the company.?

He added that sEnergy had been successful in revising and extending a $400 million capital markets ?fusion? transaction by five years to 2011.

?The growth in our statutory capital, supported in part by (this) fusion, provides current and future members of sEnergy assurance that funds are available to support their insurance programmes on a long-term basis.

? The special dividend approved by the board is evidence that our purpose is to provide our members with low cost insurance coverage overtime, not to build excessive capital at their expense.?

sEnergy is one of the three independent companies (OIL, OCIL and sEnergy) managed by Oil Management Services Ltd. (OMSL) making up the OIL Group of Companies.