Profits slide at OIL as mutual welcomes five new members

Oil Insurance (OIL) held its 2021 annual general meeting of shareholders on April 20, 2021, a virtual event at which executives shared details of the company’s financial results and welcomed five new members to the mutual insurance company.

OIL reported a $467 million of net profit in 2020, driven principally by a $420 million profit earned from net investment income. While this represented a significant fall compared to its $1.03 billion profit in 2019, it avoided a repeat of the $675.6 million loss generated in 2018.

OIL also welcomed five new shareholders into the mutual, including: Ecopetrol; Federated Co-Operatives; Inter Pipeline; Pembina Pipeline Corporation; and United Refining Company.

Shareholders approved the re-appointment of KPMG as auditors for the fiscal 2020 year and passed five resolutions, including an amendment to the definition of the designated named windstorm occurrence and a rewrite of the new entrant premium methodology. It also eliminated the named windstorm mutualisation percentage from the rating and premium plan and replaced LIBOR with SOFR in that plan. Finally, OIL amended bye-law 30, restricting the use of directed proxies.

Following the AGM, the board reelected Fabrizio Mastrantonio as chairman of the board for 2021, along with Lars Østebø as deputy chairman.

Addressing shareholders, Mastrantonio emphasised the strength of OIL’s business, highlighting the “excellent operational and financial advantages that allow it to continue to deliver its value proposition and meet the changing needs of its members.”

He insisted the development of OIL’s five-year strategic plan is progressing well, despite the limitations of COVID-19. “OIL remains well positioned within the energy insurance market to continue supporting the energy industry into the foreseeable future much like it has for the past 49 years,” he promised.

At its March 24, 2021 board meeting OIL had announced a $380 million dividend payable on or before June 30, 2021.

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