Bermuda's insurance industry got another boost last week as two Bermuda-based oil industry insurers, along with a dozen of their members, announced the formation of a new mutual insurance company to provide excess property-damage and business-interruption coverages.

Oil Insurance Ltd. and Oil Casualty Insurance Ltd. said the new company, sEnergy Insurance Ltd., will provide coverage for oil-industry participants.

The new company will provide a $200 million limit for property risks in excess of $250 million and business-interruption risks in excess of $50 million.

According to a press statement, the 12 member companies that helped capitalise the new insurer are oil and chemical companies based in the United States, Canada, South Africa, Denmark and Norway.

In addition, the company said the local economy could expect to benefit as a result of shareholder visits and meetings held locally.

Meanwhile, the creation of the new insurer comes after Oil Insurance announced in March that it set new records for both membership and assets insured in 2001.

Jack Wesley, sEnergy president, said: "The energy industry has been the pioneer in providing long-term mutual solutions for its insurance needs.

"The company is the latest vehicle formed by the industry and provides an elegant solution for those needing excess property damage and business interruption protection," he said.

Oil Insurance Ltd. and Oil Casualty are both subsidiaries of Oil Insurance Group. Oil Insurance Ltd. was formed in 1971, mainly to provide cost-effective catastrophe insurance for risks inherent in its shareholders' operations, according to A.M. Best company reports. Oil Casualty was formed in 1986 and provides excess-layer liability insurance for its members.