Oil Insurance declared a $62 million underwriting loss for last year at its annual meeting last week.

The company said, after including net investment income and administrative expenses, net income for the year totalled $210.4 million.

Oil’s board of directors also declared a dividend in an aggregate amount of $250 million to all shareholders of record in January, to be paid at the end of June, “in recognition of Oil’s continued financial success and solid financial condition”.

The company is an energy mutual, which is owned by companies it insures.

Bertil Olsson, president and CEO of Oil, said: “Oil insurance is committed to providing long-term value to its membership by offering significant policy limits with broad terms and conditions, returning excess capital by way of premium credits and dividends where appropriate as well as potentially considering additional coverages to enhance the overall value proposition of being a member.”

Oil Insurance insures more than $3 trillion of global energy assets for more than 50 members, with property limits up to $400 million, totalling more than $19 billion in A-rated property capacity.

Members are all medium to large-sized public and private energy companies with at least $1 billion in property assets and an investment-grade rating or equivalent.

Areas covered include offshore and onshore exploration and production, refining and marketing, petrochemicals, mining, pipelines, electric utilities and other related energy sectors.

The AGM was held at the Hamilton Princess last Wednesday.

George Hutchings, senior vice-president and chief operating officer of Oil, said that last year saw the completion of the firm’s strategic planning process and that over the next few years it will be implemented, with a focus on the firm’s product offering, member services and marketing and distribution.

The board of directors also elected Roberto Benzan as chairman and Theo Guidry as deputy chairman.

Mr Benzan said: “The $250 million dividend demonstrates the board’s commitment to return value to Oil’s shareholders when it is prudent to do so.

“Oil is firmly footed on a tremendously strong foundation established over its 45-year history. Over that time frame, the company has steadfastly focused on shareholder value.

“The board is excited about pursuing our strategic plan as it will further strengthen our overall shareholder value proposition.”