EIS Overview

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.

Mutual Business Programs

Eligibility
Any EIM Member or group of Members, with the approval of EIS, may form a Mutual Business Program (MBP).

Assets
Because EIS is a South Carolina sponsored captive insurance company, the losses attributed to a particular MBP may only be paid from the assets attributed to that MBP.
Each MBP must provide sufficient surplus to meet the minimum specific requirements of its Program. The surplus can be in various forms as authorized by South Carolina insurance regulations and EIS.

Formation
Any EIM Member or group of Members wanting to form an MBP must submit a brief proposal for thier 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.

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

Taxation

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.

Regulatory

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

Authorized Coverages

EIS is authorized to write insurance and reinsurance for a wide array of coverages, subject to South Carolina the 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
  • Pollution Legal / Environmental Liability
  • Wildfire Liability – Property Damage Only
  • Non-traditional indemnity

Workers' Compensation

  • Workers’ Compensation – Deductible Reimbursement
  • Excess Workers’ Compensation

Benefits

  • 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
  • Builders / Construction Risk
  • Inland Marine including Contractors Equipment
  • Marine Hull and Machinery
  • Medical Stop Loss (traditional specific and aggregate excess of loss)

Other

  • Terrorism Wrap  [Download]
  • Cyber Risk
  • Railroad Protective Liability
  • Contractors Protective Liability

Corporate Governance

Board Of Directors

  • Marian M. Durkin, Avista Corporation. (Chairman)
  • Carter M. Reid, Dominion Resources, Inc. (Vice Chairman)
  • G. Tommy Bolton, Energy Insurance Mutual Limited
  • Benjamin G. S. Fowke, III, Xcel Energy Inc.
  • Scott K. Goodell, Energy Insurance Mutual Limited
  • Randall L. Martin, Energy Insurance Services, Inc.

Officers

  • Scott K. Goodell - President and Chief Executive Officer
  • Randall L. Martin - Vice President - Chief Operating Officer
  • G. Tommy Bolton - Vice President - Chief Financial Officer
  • Kevin R. Wolff - General Counsel and Corporate Secretary
  • Taniyka D. Ragland - Assistant Corporate Secretary

Auditors

  • Johnson Lambert & Co. LLP, Charleston, SC

Legal Counsel

  • Young Clement Rivers, LLP, Charleston, SC

Leadership

Randall L. Martin

Vice President and Chief Operating Officer

Email:  rmartin@eimltd.com

Phone:  (843) 718-3108
Fax:    1 (800) 341-6801

Mailing Address
409 King Street, Suite 201
Charleston, SC 29403

Financial & Operational Profile

  2016 2015
Key Financial Data
EIS General Account - Aggregated
  Shareholder Equity $2.5 million $2.3 million
Mutual Business Programs - Aggregated
  Revenues $60.5 million $62.3 million
  Gross Loss and Loss Expense $60.5 million $62.3 million
  Assets $1,281.9 million $1,290.3 million
  Liabilities $1,147.6 million $1,152.8 million
  Surplus $134.4 million $137.5 million
Key Operational Data
  Active MBP Count 14 13
  Policy Count - In Force 55 58
  Gross Premium $169.2 million $154.2 million
  EIM Member Participant Count 18 17

Resources