Bermuda-based sEnergy Insurance, Ltd., a member of the OIL Group of mutual insurers (see related article), announced that underwriting income was $38.4 million and net operating income was $11.9 million.
for the Fiscal Year (FY) 2004.
In addition the company said that investment income had increased the “total capital of sEnergy and its subsidiaries by $15 million for the fiscal year. Statutory capital at year-end was $614.6 million, an increase of $79.7 million over FY2003.” The Board voted to declare a special dividend to be paid to its Members who are the Common Shareholders of the Company. The total dividend, in the amount of $2.4 million will be distributed to Shareholders based on their equity interest in the Company as of June 30,2004.
At the Company’s Annual General Meeting on September 16th, 2004 the Shareholders elected Mr. C. Jeffery Triplette of Duke Energy Corporation as Chairman of the Board of Directors. Mr. James F Hughes III, of ConocoPhillips Company was elected Deputy Chairman of the Board.
Commenting on the results, outgoing President and CEO Jack L. Wesley, said: “FY2004 was an excellent year for the Company, membership grew by 23 percent with the addition of BHP Billiton Petroleum (Americas) Inc., OMV Aktiengesellschaft and Koch Industries, Inc. and we were fortunate that no claims were presented to the Company.
“We were successful in revising and extending our $400 million capital markets ‘Fusion’ transaction until 2011 from 2006. The growth in our Statutory Capital, supported in part by Fusion, provides current and future Members of sEnergy assurance that funds are available to support their insurance programs on a long -term basis. The special dividend approved by the Board is evidence that our purpose is to provide our Members with low cost insurance coverage overtime, not to build excessive capital at their expense.”
The bulletin noted: “sEnergy is a licensed Bermuda insurer established in May of 2002 to provide Business Interruption Insurance, Excess Property Damage and Pollution Liability Insurance to its member companies. The company was formed and capitalized by a group of international energy companies with investments from Oil Insurance, Ltd. (OIL) and Oil Casualty Insurance Ltd. (OCIL). sEnergy was formed in response to the shortage incapacity that resulted from the deterioration of profitability in the property and casualty insurance business. sEnergy provides limits of up to $200 million per occurrence for the coverages that it writes.”
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