Oil Insurance Ltd will pay out a dividend totalling $200 million to its shareholders this year.

The Bermudian-based mutual insurer, which insures the oil giants who own it, made net income of $30.9 million in 2015 and underwriting income of $56.7 million.

Roberto Benzan, who was elected chairman at the company’s annual general meeting at the Fairmont Southampton last Thursday, said: “The $200 million dividend demonstrates the board’s commitment to return value to Oil’s shareholders when it is prudent to do so.

“Oil focuses on the unique needs of our shareholders while maintaining a strong and robust platform from which to deliver our product and services. That platform is as strong as it has ever been in the company’s 44-year history.”

The dividend will be paid to all shareholders on record as of January 1, 2016 payable on June 16 “in recognition of Oil’s continued financial success and solid financial condition”.

George Hutchings, senior vice-president and chief operating officer, said: “This year marks the completion of a transformation, started in 2006, of the mutual to overhaul the workings of Oil.

“The journey began with the restructuring of Oil’s windstorm coverage and encompassed changes to virtually every aspect of its operations including the shareholder agreement, rating and premium plan, Oil’s capital management framework, the policy and the fundamental way Oil markets itself to the brokerage community and the energy industry.

“Commencing in 2016, Oil’s board of directors and management will complete a strategic planning cycle that will focus on how best to improve the company’s overall value proposition over the next five years.”

Oil insures close to $3 trillion of global assets for its more than 50 members who are engaged in energy operations.