Bermuda-based OIL Insurance Ltd.'s members are set to get a boost after the energy industry insurance mutual announced a five-percent reduction in premium against its normal second-quarter rates.

This follows a net profit of $876 million in 2007 against $607.4 million in 2006. The profit was generated on net premiums of $993 million last year against $1.1 billion in 2006.

OIL's coverage provided to each insured party is limited to $250 million per occurrence, with no annual aggregate limit for each party. There is, however, an aggregation limit for multiple claims that arise from a single occurrence of $750 million, which was increased from $500 million in 2006.

As of June 1, 2007 two new coverage sectors were created for members., including onshore and offshore Atlantic named windstorm that covers the North Atlantic Basin geographic area.

OIL said that these sectors were created because of the increased tropical windstorm claims incurred in recent years.

The organisation has experienced an eventful few years following the hurricanes of 2005 as it coped with senior management changes, the loss of a number of significant members and changes to coverage.

At the end of last year, OIL's board approved a new strategic plan that includes measures on capital management, limits and deductibles, risk alignment and marketing and risk transfer products to address what is calls "aggregation limit scaling".

George Hutchings, OIL's senior vice-president and chief operating officer, said: "After a very active year incorporating the two new windstorm sectors and successfully growing our capital base, OIL is now well positioned to execute on a long-term plan that will further strengthen the company's value to its shareholders."