Current Financials

Energy Insurance Mutual Limited ("EIM") recorded a gain on surplus of $14.5 million for the six months ended June 30, 2018 compared to $72.3 million for the same period in 2017.  During the first six months, EIM recorded income from underwriting of $10.7 million in 2018 compared to $34.0 million in 2017.  Current year losses and expenses were favorable resulting in a combined ratio of 86.2% compared to 50.9% in 2017.  The positive combined ratio is a result of favorable development on prior year claims in the general liability and directors and officers lines of business.

Income from dividends, interest, realized gains on alternative investments and sales of traditional investments was $32.8 million and $36.5 million for the six months ended June 30, 2018 and 2017, respectively.  Certain investment classes experienced volatility in the first six months resulting in mark-to-market decreases in the value of EIM’s portfolio.  This resulted in an other comprehensive loss of $21.7 million comprised of net unrealized losses on securities of $16.8 million less reclassification adjustment for net gains realized in net income of $4.9 million, net of tax for the first six months of 2018.

Highlights from the first six months include:

  • Distribution of $40.0 million (an increase of $15.0 million from the prior year) paid to policyholders of record at December 31, 2017.
  • Policyholders’ Surplus grew to $1.18 billion, an increase of $14.5 million for the year.
  • Gross written premiums totaled $91.1 million and $96.6 million for the six months ended June 30, 2018 and 2017, respectively.
  • Membership retention of 98% was achieved in the first six months of 2018.

EIM’s return on investments of 0.28% compared to a benchmark return of 0.26%.  The return is primarily a result of gains on US equities of 3.06% and alternative investments of 3.05% offset by losses on non-US equities of -2.52%, tax-exempt bonds of -0.38% and taxable bonds of -0.70%.

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, General Counsel and Chief Compliance Officer
Avista Corporation

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

Scott K. Goodell
President and Chief Executive Officer
Energy Insurance Mutual Limited

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

G. Edison Holland, Jr.
President and CEO (retired)
Mississippi Power Company

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

Carter M. Reid
Senior Vice President - Chief Adminsitrative and Compliance Officer and Corporate Secretary
Dominion Energy, Inc.

M. Bridget Reidy
Executive Vice President
Exelon Corporation

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

Rudolph L. Wynter
President and COO,  FERC Regulated Business and New Energy Solutions
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.