Bermuda based insurer Oil Insurance has reported a $66.9 million underwriting profit for 2020, compared with an underwriting gain of $364 million in the prior year.
After factoring in net investment gains and administrative expenses, Oil’s net profit for the year was $466.5 million, under half of 2019’s profit of $1.034 billion.
During a board meeting the directors approved the company’s 2020 financial statements, whilst discussing the development of its strategic plan, approved the payment of a $380 million dividend on June 30th, 2021 for shareholders of record on March 24th, 2021 and modified the DNWS Definition.
The company modified the Definition of DNWS in order to minimise the chances future named storms, which originate outside of the Atlantic Basin, become classified as DNWS.
A storm’s centre, instead of just a portion of a storm, now determines if it enters the Atlantic Basin and becomes a DNWS. The change is effective as of March 24th, 2021.
Fabrizio Mastrantonio, Chairman of the Board, commented: “The Board decided to authorise the $380 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 will be finalised in 2021.”
Bertil Olsson, President and CEO added: “The strong performance in 2020 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.”