Current Financials

4th Quarter 2020 Financial Commentary

Energy Insurance Mutual Limited ("EIM") recorded income of $35.7 million for the year ended December 31, 2020 compared to $24.0 million for 2019. EIM recorded a loss from underwriting of ($30.5) million compared to ($77.2) million in the prior year. Current and prior year underwriting results were impacted by unfavorable loss development on prior year claims in the general liability and director and officers lines of business.

Investments performed well during 2020 despite market volatility related to the impact of COVID-19 pandemic on the overall global economy. Total investment income was $113.4 million and $202.9 million for the years ended December 31, 2020 and 2019, respectively. The changes in fair value, reported as a component of investment income, contributed $67.6 million and $106.5 million for the years ended December 31, 2020 and 2019, respectively.

EIM’s return on investments was 7.48%, compared to a benchmark return of 7.84%.  The return is a result of gains on US equities of 16.48%, international equities of 7.26%, alternative investments of 2.67%, tax-exempt bonds of 5.11% and taxable bonds of 5.84%.

Highlights from 2020 include:

  • Distribution of $50.0 million approved by the Board of Directors during the year for members of record at December 31, 2020.
  • Policyholders’ Surplus of $1.2 billion, an increase of $35.7 million for the year.
  • Return on surplus of 6.5% before distributions.
  • Combined ratio of 114.5% for the year ended 2020 as compared to 145.7% for the prior year.
  • Membership retention of 100% was achieved.

 

Corporate Governance

Board of Directors

G. Thomas Bolton, III
President and Chief Executive Officer
Energy Insurance Mutual Limited

Marcus V. Brown
Executive Vice President and General Counsel
Entergy Corporation

Trevor A. Carmichael
Barrister at Law
Barbados Counsel

Marian M. Durkin
Avista Corporation (retired)

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

Mary E. Kipp
President and CEO
Puget Sound Energy

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, Corporate Operations, Exelon BSC
Exelon Corporation

Brian X. Tierney
Executive Vice President Strategy
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.