HAMILTON, Bermuda, April 4, 2012 /CNW/ - Oil Insurance Limited (OIL) held its 2012 Annual General Meeting (AGM) on March 28th, 2012 at the Fairmont Southampton Hotel in Bermuda.
OIL Chairman, Trygve Imsland, opened the meeting by welcoming the Shareholders to the 40th anniversary of the company and explaining how the company had grown from 1972 to 2012.
Robert Stauffer, President & Chief Executive Officer, began the meeting by pointing out that at the time of the formation of the company in 1972, there was little confidence in the insurance industry that the organization would even survive. In an article in the London Times from February 23rd of that year entitled 'Concern as oil firms bypass London insurance market,' the outlook for OIL was decidedly bleak: "OIL is a mutual insurance company and was set up because, according to the oil companies, it was becoming increasingly difficult to obtain what they considered to be satisfactory insurance arrangements ... The London market view is that OIL will not be able to cope indefinitely with its insurance load."
Forty years later, that excerpt - and the prediction of a dire and imminent end to OIL's operations - is a distant memory. He pointed out that today's OIL is very different from the organization of 40 years ago and during that time, OIL had achieved many milestones. For instance, OIL's globally insured assets surpassed the $2 trillion mark and OIL had paid over $12 billion in claims to its members. Financial ratings remain strong and today OIL has over $5.7 billion in assets and $3 billion in shareholders' equity.
He stated that while these figures represented an important facet of OIL's success, they are also notable because they are proof of the faith OIL members have in the organization, and the value they gain from membership. Listening to and addressing our members' needs has always been an integral part of our operating philosophy, and that is what has prompted the changes over the years to OIL's limits and the coverage we provide.
During the AGM week, the Directors approved a new OIL OPOL endorsement that enabled OIL to satisfy OPOL's new Evidence of Financial Responsibility requirements without adding incremental cost to the member. The new endorsement was presented to the shareholders during the AGM for immediate use and implementation by the members. The membership also agreed to amend the shareholders agreement to require mediation as the first course of dispute resolution prior to arbitration. OIL also updated its shareholders on new windstorm pool elections.
The mutual also announced that members, brokers and its many stakeholders will be involved over the next few years in updating the language within the OIL policy form, shareholders agreement and the rating and premium plan.
George Hutchings, Senior Vice President & Chief Operating Officer, pointed out that OIL had provided an OPOL endorsement since 1974 and the company was pleased that they could continue to do so. Members expressed their appreciation for the continuation of the OPOL endorsement in light of the increased requirements and potential for additional exposure. Mr. Hutchings also advised that OIL had attracted 3 new members in 2011 and that OIL was in discussions with a number of additional prospective members from around the globe.
Ricky Lines, Senior Vice President & Chief Financial Officer, reviewed OIL's 2011 audited financials with the shareholders. During the year, OIL had $543 million of written and earned premium while incurred losses and loss adjustment expenses totaled $(599) million yielding net underwriting income of $(56) million. Including net investment income of $(29) million in the results, as well as G&A and other expenses, OIL experienced net income for the year of $(104) million. OIL ended the year with $3.0 billion of shareholders' equity.
Shareholders voted on company directors for the 2011-2012 year. At the Board meeting following the shareholders meeting, Trygve Imsland was re-elected as Chairman of the Board while Mark Wilson was re-elected Vice Chairman. For a list of the directors for the 2012 - 2013 year and a more in-depth evaluation of OIL's 2011 audited financial results, please see our complete financial results on our website at http://www.oil.bm.
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