Corporate & Financial Information

1st Quarter 2022 Financial Commentary

Energy Insurance Mutual Limited (“EIM”) recorded a loss on surplus of
($75.6) million for the three months ended March 31, 2022 compared
to a gain of $17.0 million for the same period in 2021. EIM recorded a
loss from underwriting of ($33.5) million compared to a gain of $3.2
million in the prior year.

EIM had an investment loss of ($62.8) million for the first three months
of 2022 compared to income of $17.5 million for the same period in 2021. Current year investment results were impacted by unfavorable
market performance.

Highlights from 2022 include:

• Distribution of $50.0 million paid in March 2022 to members of record at December 31, 2021.
• Policyholders’ Surplus of $1.2 billion, a decrease of $75.6 million or (6.1%) for the year.
• Combined ratio of 154.3% for the first three months 2022 as compared to 94.2% for the same period prior year.
• Membership retention of 100% was achieved in the first three months of 2022.

EIM’s return on investments of (3.30%) compared to a benchmark return of (3.29%). The return is a result of losses on US equities of (4.11%), international equities of (6.22%), fixed income securities of (4.45%) and gains on alternative investment securities of 2.12%.

While the first quarter 2022 saw a 3.3% negative investment return driven by a drop in equity markets and fixed income securities,
EIM remains confident, based on the diversity and allocation of its investment portfolio, that the long term investment returns are on track and achievable, with 5 and 10 year averages both above 5.5%. In addition, the first quarter combined ratio of 154%, while notable, is somewhat skewed given the fact that the combined ratio is subject to more volatility with only three months of activity. We expect to see the combined ratio improve as the year progresses. EIM’s 5 and 10 year combined ratios are 107% and 100%, respectively.