Current Financials

1st Quarter 2020 Financial Commentary

Energy Insurance Mutual Limited ("EIM") recorded a loss on surplus of ($79.7) million for the three months ended March 31, 2020 compared to a gain of $58.0 million for the same period in 2019. EIM recorded a loss from underwriting of ($1.0) million compared to ($11.2) 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.

Investment loss of ($100.6) million for the first quarter of 2020 compared to income of $83.8 million for the same period in 2019. Current year investment results were impacted by market volatility related to the COVID-19 pandemic driven unrealized losses on investments. Mark-to-market decreases were partially offset by income from interest and dividends of $10.2 million.

Highlights from 2020 include:

  • Distribution of $50.0 million paid to members of record at December 31, 2019.
  • Policyholders’ Surplus of $1.1billion, a decrease of $79.7 million or -6.9% for the year.
  • Combined ratio of 102.0% for the first quarter 2020 as compared to 131.6% for the same period prior year.
  • Membership retention of 100% was achieved in the first three months of 2020.

EIM’s return on investments of -6.12% compared to a benchmark return of -5.54%.  The return is a result of losses on US equities of -20.37%, international equities of -23.93%, alternative investment securities of -4.53% and a gain on fixed income securities of 0.10%.

Overall, EIM remains in a strong position both operationally and financially, despite the economic impact of the COVID-19 pandemic.  Operationally, EIM has experienced very little disruption from all business units.  Financially, EIM is well within the parameters set out in its current risk tolerance statement of being able to withstand a 1/200 catastrophic event and maintain an A rating by AM Best.

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.

G. Thomas Bolton, III
President and 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

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, Dominion Resources, Inc.
Chairman

Brian X. Tierney, American Electric Power Service Corporation
Vice Chairman

G. Thomas Bolton, III
President and Chief Executive Officer

Jill C. Dominguez
Vice President - Chief Underwriting Officer

Jeffrey M. Tkacz
Vice President - Chief Financial 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

Tommy Bolton

President and Chief Executive Officer

Jill Dominguez

Vice President - Chief Underwriting Officer

Jeff Tkacz

Vice President - Chief Financial Officer

Kevin Wolff

Vice President, General Counsel and Corporate Secretary

Ann Joslin

Vice President – Claims Department

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.