Oil Insurance Limited (OIL) has expanded the definition of its energy operations to include biochemicals, biofuels, renewable fuels, hydrogen and carbon capture and sequestration.
The Bermuda-based mutual insurer, which insures over $3.6 trillion of global energy assets, had already broadened its scope to cover renewable energy sources such as solar and wind in recent years.
Since being founded in 1972 by 16 oil companies, traditional fossil fuel industries have represented the majority of OIL’s business.
The move to include greener fuel sources and carbon capture activities therefore represents a significant shift in the identity of the organisation.
OIL members are medium to large sized public and private energy companies with at least $1 billion in physical property assets and an investment grade rating or equivalent.
The expanded definition for OIL’s energy operations was approved by its Board of Directors at the company’s AGM last week.
During the Board meeting, the directors also approved the OIL’s 2021 financial statements, discussed the execution progress of the 5 year Strategic Plan and approved the payment of a $350 million dividend for shareholders.
Additionally, they elected a new Board of Directors who will serve for a year ending at the March 2023 AGM, which then elected John Weisner as its Chair and Robert Wondolleck as Deputy Chair.
Over the past 12 months, OIL added five new shareholders to the mutual, namely North West Redwater Partnership, Formosa Plastics, Edison International, Los Angeles Department of Water & Power and CEZ.
For 2021, OIL recorded a $266.0 million underwriting profit. After factoring in net investment gains and administrative expenses, OIL’s net profit for the year was $667.5 million.
Bertil Olsson, President and CEO, explained: “The Board decided to authorize the $350 million dividend after carefully reviewing the company’s multi-year Capital Management Plan and while considering future capital needs that may come out of its Strategic Plan which was finalized in December 2021.”
George Hutchings, Senior Vice President and COO, also commented,:“The strong performance in 2021 and the robust capital position of the company has enabled us to once again return a significant amount of capital to our shareholders and demonstrate the superior value of the OIL model.”
