Oil Casualty Insurance posts $4m annual profit
Bermudian-based Oil Casualty Insurance Ltd has reported net income for the year ending November 30, 2020 of $4 million – but a net underwriting loss of $17 million.
The company reported gross written premiums for the period of $561 million, an increase of $188 million from the year prior.
Net premiums earned for the year were $396 million.
The company reported net investment income of $39 million and general and administrative expenses of $18 million.
Shareholders’ equity stood at $510 million as at November 30.
Bertil C Olsson, president and CEO of Ocil, said: “2020 was a busy year. The company executed on its strategic initiative to expand our customer base by creating a new subsidiary to provide excess liability insurance to US-based energy companies.
“As of January 1, 2021, Ocil Specialty Ltd, our Bermuda based Class 3A insurance company, is listed on the National Association of Insurance Commissioners list of alien insurers with an AM Best rating of A-. With improving underwriting conditions, Ocil is well positioned to generate positive underwriting results as we move forward.”
Jerry Rivers, senior vice-president and chief operating officer, said: “Although we are disappointed with our 2020 underwriting performance, it was a $22 million dollar improvement over the prior year.
“The company made great progress in 2020 increasing risk adjusted rates in our property and liability portfolios. We also scaled up our top line revenue in our assumed reinsurance business by nearly 65 per cent.
“Most importantly, while many insurers reduced the limits they provide to energy clients, Ocil delivered on its value proposition by maintaining its maximum available limits.
“The addition of Ocil Specialty Ltd will enhance the company’s product offerings to smaller US energy companies that typically do not access insurance coverage in Bermuda.”
Results were reported to shareholders at a virtual annual general meeting held on Wednesday.
Following the AGM, the board of directors of Ocil appointed John Weisner as chairman of the board and John Talarico as deputy chairman.