Mutual insurer OIL is to pay a total $300 million dividend to its energy industry members after it booked a full-year profit of $631.9 million.

The Bermuda-based company told shareholders at its annual meeting last week that it wrote and earned $550.4 million of premium that resulted in $53.2 million of underwriting income in the year ended November 30, 2013.

The dividend will be payable to shareholders of record at January 1, 2014 payable on April 30, 2014 and is in recognition of OIL’s continued financial success and solid financial condition.

Ninety-four percent of shareholders also approved a proposal for ‘Experience Modification’ — the name given to the process by which OIL will adjust shareholders’ future premium levels based upon their loss experience in OIL.

OIL CEO Robert Stauffer said: “Oil Insurance Ltd is committed to providing long term value to its membership by offering significant policy limits with broad terms and conditions, returning excess value by way of premium credits and dividends when appropriate as well as potentially considering additional coverages to enhance the overall value proposition of being a member.”

During the AGM, the shareholders voted to accept the Board’s and Management’s proposal for Experience Modification with 94% of the vote approving the proposal. Experience Modification is the process by which OIL will adjust shareholders’ future premium levels based upon their loss experience in OIL.

George Hutchings, Senior Vice President & COO, stated that “This vote sends a clear message to the energy insurance industry that the inclusion of Experience Modification in the Rating & Premium Plan greatly enhances OIL’s overall value proposition for both current members and potential prospects.”

After the AGM adjourned, the directors met and elected Gerard Naisse as chairman of the board and Roberto Benzan as deputy chairman.

Gerard Naisse, the newly elected chairman, said the $300 million dividend demonstrates the board’s commitment to return value to OIL’s shareholders and comes on the heels of a $100 million premium credit that was granted in 2013 as well as an increase in policy limits to $300 million that was offered in 2012.

Meanwhile, Oil Casualty Insurance Ltd (OCIL) saw its business and profits expand last year, shareholders heard at the company’s annual meeting last week.

The company, a 27-year-old mutual insurer that provides excess liability and directors’ & officers’ (D&O) coverage to its energy industry members, increased its gross premiums written by 30 percent in the year ended November 30, 2013.

Net income surged to $39.6 million, compared to $28.3 million in 2012, as premiums earned grew to $145.4 million, up from $111.9 million in 2012.

OCIL CEO Robert Stauffer said the company’s new direct and facultative property line of business is growing at a steady rate with 43 in-force policies as of November 30, 2013.

Jerry Rivers, senior vice-president and chief operating officer, said the company had a record 120 excess liability insureds last year. Additionally, the Company finished the year with record written premium of $153 million. The continued expansion of the Company’s direct insurance operations, growth in assumed reinsurance business and expansion into direct property business has created a more dynamic and sustainable business model.

Chief financial officer Ricky Lines said that at fiscal year-end November 30, 2013, shareholders’ equity stood at $529 million, an eight percent increase over the same period last year.

After the meetings, a board meeting was held at which time Theodore Guidry II and James Hughes were re-elected as chairman and deputy chairman respectively.