Energy Insurance Services, Inc. (EIS), a wholly-owned stock insurance subsidiary of Energy Insurance Mutual Limited (EIM), was formed to provide a facility that would meet EIM Member's specific and dynamic business requirements for the placement and management of alternative risk related products.
EIS was originally incorporated in Bermuda on May 27, 1992 under the Companies Act of 1981 as Energy Insurance (Bermuda) Ltd. Upon completing redomestication requirements and moving onshore to South Carolina, EIB was renamed EIS on December 1, 2006.
EIS is licensed to conduct insurance operations in South Carolina, and authorized to write insurance, reinsurance or coinsurance for a Member or group of Members through the use of Mutual Business Programs. EIS contracts with Energy Captive Management LLC (ECM), a subsidiary of EIM, as its captive manager to conduct the business of EIS and the Mutual Business Programs.
In 2018, the Captive Insurance Companies Association (CICA) honored EIS with the CICA 2018 Outstanding Captive Award stating "The Outstanding Captive Award is presented to a captive insurance company or risk retention group that has shown creative uses for a captive, been successful in managing the captive in terms of net results and usefulness to its owners, has prevailed over difficult times or situations, and has gained acceptance, recognition, and a positive reputation among rating agencies, regulators and colleagues in the captive industry".
Mutual Business Programs
Any EIM Member or group of Members, with the approval of EIS, may form a Mutual Business Program (MBP).
Any EIM Member or group of Members wanting to form an MBP must submit a brief proposal for their program to EIS. EIS will review the proposal and advise the Member(s). Once the MBP is approved, EIS will work with the EIM Member(s) to setup the MBP.
Because EIS is a South Carolina sponsored captive insurance company and each MBP is a protected cell, the losses attributed to a MBP may only be paid from the assets attributed to that MBP.
Each MBP, initially, must provide sufficient capital to meet the minimum specific requirements of its Program. The capital may be provided in various forms as authorized by South Carolina insurance regulations and EIS.
Investment of Assets
EIS will invest the assets of each MBP for the specific account of each MBP in consultation with the Member's Program Advisory Committee.
Taxation and Regulatory Matters
EIS is subject to the following taxes:
- U.S. Income Tax
- South Carolina State Premium Tax
- Federal Excise Tax depending on certain reinsurance arrangements
US Federal Income and Federal Excise tax liability is individually accounted in the EIS general account and in each mutual business program. These tax liabilities are rolled up to our parent entity, Energy Insurance Mutual, Limited. The separate accounting of the individual mutual business programs allow for tax treatment as if each were a pure captive. Our Participant Agreement addresses our allocation of the U.S. Federal Income tax among the individual mutual business programs.
Deductibility of Premiums
Deductibility of premiums paid by a Participant to EIS will vary depending upon the structure of their mutual business program and, possibly, other factors pertaining to the Participant’s insured risk and business. It is the responsibility of a Participant to determine the deductibility of premiums paid to EIS for their own account.
EIS maintains all Regulatory required filings and fees due to the State of South Carolina.
In the course of business, EIS is required to make notification or seek approval for certain transactions as prescribed by statute or regulatory guidelines. The following are a few of these transactions.
- Mutual business program surplus distribution
- A line of insurance new to EIS
- A significant change to the business plan of a mutual business program
- Creation of a new mutual business program
- Addition of a reinsurance company, not currently on the state’s approved list
EIS is authorized to write insurance and reinsurance for a wide array of coverages, subject to the South Carolina captive insurance statute or regulatory guidelines. Policies may be either risk bearing or reinsured. Below is a representative sample of current lines of insurance EIS writes on behalf of our Mutual Business Program Participants. EIS is not limited to these lines of insurance. Our ability to write any risk exposure is driven by the creativity and customized needs of EIM Members.
Third Party Liability
- General Liability
- Auto Liability
- Marine Liability
- Protection & Indemnity
- Excess Liability
- Employers Liability
- Professional (Error & Omission) Liability
- Directors' & Officers' Liability
- Pollution Legal / Environmental Liability
- Wildfire Liability – Property Damage Only
- Non-traditional indemnity
- Workers’ Compensation – Deductible Reimbursement
- Excess Workers’ Compensation
Trust Owned Health Insurance – Long Term Retiree Medical Stop Loss (non-traditional cover in a multi-participant MBP) [Download]
First Party Insurance
- Commercial Property
- Nuclear Property
- Railroad Rolling Stock
- Auto Physical Damage
- Unmanned (Drone) Aircraft Physical Damage
- Crime / Employee Dishonesty
- Builders / Construction Risk
- Inland Marine including Contractors Equipment
- Marine Hull and Machinery
- Medical Stop Loss (traditional specific and aggregate excess of loss)
- Terrorism Wrap [Download]
- Cyber Risk
- Railroad Protective Liability
- Contractors Protective Liability
Board Of Directors
- Carter M. Reid, Dominion Resources, Inc. (Chairman)
- Brian X. Tierney, American Electric Power Service Corporation (Vice Chairman)
- G. Thomas Bolton, III, Energy Insurance Mutual Limited
- Jeffrey M. Tkacz, Energy Insurance Mutual Limited
- Randall L. Martin, Energy Insurance Services, Inc.
- G. Thomas Bolton, III - President and Chief Executive Officer
- Jeffrey M. Tkacz - Vice President - Chief Financial Officer
- Randall L. Martin - Vice President - Chief Operating Officer
- Kevin R. Wolff - Vice President, General Counsel and Corporate Secretary
- Taniyka D. Ragland - Assistant Corporate Secretary
- Johnson Lambert & Co. LLP, Charleston, SC
- Young Clement Rivers, LLP, Charleston, SC
Financial & Operational Profile
|Key Financial Data|
|EIS General Account - Aggregated|
|Shareholder Equity||$4.2 million||$3.5 million|
|Mutual Business Programs - Aggregated|
|Net Revenues||$75.4 million||$66.5 million|
|Gross Loss and Loss Expense||$54.7 million||$988.1 million|
|Net Loss and Loss Expense||$52.5 million||$61.5 million|
|Assets||$2,267.0 million||$2,283.2 million|
|Liabilities||$2,146.0 million||$2,141.0 million|
|Surplus||$221.0 million||$142.2 million|
|Key Operational Data|
|Active MBP Count||16||15|
|Policy Count - In Force||65||54|
|Gross Premium||$175.7 million||$260.5 million|
|EIM Member Participant Count||19||19|