Corporate & Financial Information

3rd Quarter 2023 Financial Commentary

Energy Insurance Mutual Limited (“EIM”) recorded a gain on surplus of $13.8 million for the nine months ended September 30, 2023. This is compared to a loss of ($143.7) million for the same period in 2022. EIM incurred a loss from underwriting of ($44.0) million compared to income of $44.2 million in the prior year.

EIM’s investment income totaled $58.0 million for the first nine months of 2023 compared to a loss of ($230.4) million for the same period in 2022. Prior year investment results were impacted by unfavorable market performance across most asset sectors.

Highlights from 2023 include:

• Distribution of $25.0 million paid in March 2023 to members of record at December 31, 2022.
• Policyholders’ Surplus of $1.2 billion, an increase of $13.8 million or 1.2% for the first nine months of the year.
• Combined ratio of 119.3% for the first nine months of 2023 as compared to 78.9% for the same period prior year, driven by unfavorable development of claims in prior loss years.
• Membership retention of 99% was achieved in the first nine months of 2023.

EIM’s return on investments of 3.02% compared to a benchmark return of 3.41%, lagging the benchmark from a value versus growth bias. The return is a result of gains on US equities of 8.48%, international equities of 6.89%, fixed income securities of 1.21% and alternative investment securities of 2.07%.