Corporate & Financial Information
Current Financials
3rd Quarter 2022 Financial Commentary
Energy Insurance Mutual Limited (“EIM”) recorded a loss on surplus of ($143.7) million for the nine months ended September 30, 2022 driven by investment market volatility. This is compared to a gain of $59.0 million for the same period in 2021. EIM recorded income from underwriting of $44.2 million compared to a loss of ($0.2) million in the prior year.
EIM saw an improvement on its net loss ratio, currently 73.7% for the nine months ended September 30, 2022, steadily decreasing over the last three years and more in line with budget.
EIM had an investment loss of ($230.4) million from unrealized market losses for the first nine months of 2022 compared to income of $71.3 million for the same period in 2021. Current year investment results were impacted by unfavorable market performance across most asset sectors.
Highlights from 2022 include:
- Distribution of $50.0 million paid in March 2022 to members of record at December 31, 2021.
- Policyholders’ Surplus of $1.1 billion, a decrease of $143.7 million or (11.5%) for the year.
- Combined ratio of 78.9% for the first nine months 2022 as compared to 100.1% for the same period prior year.
- Membership retention of 99% was achieved in the first nine months of 2022.
EIM’s return on investments of (12.00%) compared to a benchmark return of (12.00%). The return is a result of losses on US equities of (21.76%), international equities of (27.35%), fixed income securities of (10.27%) and slightly offset by gains on alternative investment securities of 0.56%, lead by strong returns on our real estate investments.
While the first nine months of 2022 saw a 12% negative investment return driven by a drop in equity markets and fixed income securities, EIM remains confident, based on the diversity and allocation of its investment portfolio, that the long-term investment returns are on track and achievable, with 10-year average above 4%.
Corporate Governance
Board of Directors
Brian B. Bird
President and Chief Executive Officer
NorthWestern EnergyG. Thomas Bolton, III
President and Chief Executive Officer
Energy Insurance Mutual LimitedMarcus V. Brown
Executive Vice President and General Counsel
Entergy CorporationTrevor A. Carmichael
Barrister at Law
Barbados CounselBenjamin G. S. Fowke, III
Chairman and Chief Executive Officer (retired)
Xcel Energy Inc.Kodwo Ghartey-Tagoe
Executive Vice President, Chief Legal Officer and Corporate Secretary
Duke EnergyJames R. Hatfield
Executive Vice President & Chief Administrative Officer (retired)
Pinnacle West Capital Corporation/APS
Martin J. Lyons, Jr.
President and Chief Executive Officer
AmerenDavid E. Meador
Vice Chairman and Chief Administrative Officer (retired)
DTE EnergyCarter 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 CorporationDan S. Tucker
Executive Vice President and Chief Financial Officer
Southern CompanyRudolph L. Wynter
President, National Grid New York
National Grid
Officers
Marcus V. Brown, Entergy Corporation
Chair
Carter M. Reid, Dominion Resources, Inc.
Vice-Chair
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
Trevor A. Carmichael
Assistant Corporate Secretary
Leadership
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.