Current Financials

Energy Insurance Mutual Limited ("EIM") recorded a gain on surplus of $110.7 million for the nine months ended September 30, 2017 compared to $72.8 million for the same period 2016.  During the first nine months, EIM recorded income from underwriting of $59.2 million in 2017 compared to $28.2 million in 2016.  Current year losses and expenses were favorable resulting in a combined ratio of 42.9% compared to 73.6% in 2016.  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 and realized gains on alternative investments and sales of traditional investments was $46.7 million and $45.1 million for the nine months ended September 30, 2017 and 2016, respectively.  Reported investment performance experienced favorability in the first nine months due to mark-to-market increases in the value of EIM’s portfolio.  This resulted in other comprehensive income of $34.7 million comprised of net unrealized gains on securities of $45.1 million less reclassification adjustment for net gains realized in net income of $10.4 million, net of tax for the first nine months of 2017.

Highlights from the first nine months include:

  • Distribution of $25.0 million (an increase of $5.0 million from the prior year) paid to policyholders of record at December 31, 2016.
  • Policyholders’ Surplus grew to $1.14 billion, an increase of $110.7 million for the year.
  • Gross written premiums totaled $159.0 million and $169.8 million for the nine months ended September 30, 2017 and 2016, respectively.
  • Total return on EIM’s investment portfolio was 6.6% for the first nine months of 2017 compared to 5.2% for the same period 2016.
  • Membership retention of 99% was achieved in the first nine months of 2017.

EIM’s return on investments of 6.6% compared to a benchmark return of 6.3%.  The return is primarily a result of gains on US equities of 14.9%, non-US equities of 18.9%, tax-exempt bonds of 4.5%, taxable bonds of 2.7% and alternative investments of 2.0%.

Corporate Governance

Board of Directors

Darryl M. Bradford
Senior Vice President and General Counsel (retired)
Exelon Corporation

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
Senior Vice President and Chief Financial Officer
Pinnacle West Capital Corp.

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.

Joseph M. Rigby
Chairman, President and Chief Executive Officer (retired)
Pepco Holdings, Inc.

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

Officers

Marian M. Durkin
Chairman

Carter M. Reid
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
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

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 a modeled annual aggregate occurrence 1-in-10 year period with a probable maximum net loss of no more than 20% of prior year's capital. This is the amount of capital on a corporate wide basis that we are willing to put at risk, subject to the above threshold. In other words, according to our modeling there is no more than a 10% chance of losing 20% of last year's capital. The probable maximum net loss is further subject to a required capital floor as determined during the annual capital adequacy study as prepared by our actuaries to maintain an "A" rating by AM Best.