Current Financials

Energy Insurance Mutual Limited ("EIM") recorded income of $24.0 million for the year ended December 31, 2019 compared to a loss of ($33.7) million for 2018. EIM recorded a loss from underwriting of ($77.2) million compared to income of $34.0 million in the prior year. Current year underwriting results were impacted by unfavorable loss development on prior year claims in the general liability and director and officers lines of business.

Income from dividends, interest, unrealized gains on securities, alternative investments and sales of traditional investments totaled $202.9 million and $80.8 million for the years ended December 31, 2019 and 2018, respectively.

Investments performed well during 2019, contributing $106.5 million to investment income due to mark-to-market increases. During 2019, EIM implemented certain accounting principles requiring mark-to-market changes in value of securities to be recognized through the income statement.  In prior periods, mark-to-market valuations were recorded as a component of other comprehensive income, net of tax.  For comparative purposes, investments contributed ($97.9) million in gross mark-to-market decreases in value in 2018.

Highlights from 2019 include:

  • Distribution of $50.0 million (an increase of $10.0 million from the prior year) paid to members of record at December 31, 2018.
  • A supplemental distribution of $50.0 million (an increase of $25.0 million from prior year) paid to members of record at September 30, 2019.
  • Policyholders’ Surplus of $1.2 billion, an increase of $17.8 million for the year.
  • Return on surplus of 8.5% before distributions.
  • Combined ratio of 145.7% for the year ended 2019 as compared to 78.2% for the prior year.
  • Membership retention of 100% was achieved.

EIM’s return on investments of 12.37% compared to a benchmark return of 12.16%.  The return is a result of gains on US equities of 31.48%, international equities of 22.21%, alternative investments of 6.29%, tax-exempt bonds of 7.26% and taxable bonds of 7.56%.

 

Corporate Governance

Board of Directors

Marcus V. Brown
Executive Vice President and General Counsel
Entergy Corporation

Trevor A. Carmichael
Barrister at Law
Barbados Counsel

Marian M. Durkin
Senior Vice President, Chief Legal Officer & Corporate Secretary
Avista Corporation

Benjamin G. S. Fowke, III
Chairman, President and Chief Executive Officer
Xcel Energy Inc.

Scott K. Goodell
Chief Executive Officer
Energy Insurance Mutual Limited

James R. Hatfield
Executive Vice President and Chief Administrative Officer
Pinnacle West Capital Corp. and its subsidiary,
Arizona Power Company

David E. Meador
Vice Chairman and Chief Administrative Officer
DTE Energy

Armando Pimentel, Jr.
President and Chief Executive Officer (retired)
NextEra Energy, Inc.

Carter M. Reid
Executive Vice President, Chief of Staff and Corporate Secretary and President-Dominion Energy Services
Dominion Energy, Inc.

M. Bridget Reidy
Executive Vice President and Chief Operating Officer
Exelon Corporation

Brian X. Tierney
Executive Vice President and Chief Financial Officer
American Electric Power Service Corporation

Rudolph L. Wynter
President and COO,  Wholesale Networks and US Capital Delivery
National Grid

Officers

Carter M. Reid
Chairman

Brian X. Tierney
Vice Chairman

Scott K. Goodell
President and Chief Executive Officer

G. Tommy Bolton
Vice President - Chief Financial Officer

Jill C. Dominguez
Vice President - Chief Underwriting Officer

Ann M. Joslin
Vice President - Claims

Kevin R. Wolff
Vice President, General Counsel and Corporate Secretary

Taniyka D. Ragland
Assistant Corporate Secretary

Trevor A. Carmichael
Assistant Corporate Secretary

Leadership

Scott Goodell

President and Chief Executive Officer

Tommy Bolton

Vice President and Chief Financial Officer

Jill Dominguez

Vice President and Chief Underwriting Officer

Ann Joslin

Vice President – Claims Department

Kevin Wolff

Vice President, General Counsel and Corporate Secretary

Enterprise Risk Management

ERM (Enterprise Risk Management) plays an integral role in how EIM manages our business. As such, the ERM Committee, reporting to the Board of Directors, has defined the Company's risk tolerance policy as follows.

Corporate Risk Tolerance

We have set our corporate risk tolerance at being able to withstand a  modeled 1/200 TVaR annual aggregate occurrence and maintain an "A" rating by AM Best on an entity wide level.  The related categories include reserve, underwriting, operational, investment, catastrophe and reinsurer credit risk.  Risk capacity is the percentage at or above this level and is used to measure how effectively the Company is managing risk on a quarterly basis.