OCIL pledges underwriting changes after posting loss

Bermuda-based Oil Casualty Insurance (OCIL) has reported a net underwriting loss of $37m for the year ended 30 November 2021.

At its annual general meeting of shareholders, the company reported gross written premiums of $637m, an increase of $76m year on year. Net premiums were $471m. There was net investment income of $24m and general and administrative expenses of $23m. Shareholders’ equity was $473m.

Jerry Rivers, senior vice-president and COO, said OCIL was disappointed with its 2021 underwriting performance, but that it had already begun implementing underwriting changes within its underperforming coverage and industry segments. This should strengthen its future performance, he added.

OCIL continued to make good progress in 2021 by increasing risk-adjusted rates in its property and liability portfolios, he said, as well as by scaling up its assumed reinsurance book.

“Importantly, OCIL continues to deliver on its value proposition by maintaining its maximum available limits of $75m for our shareholder insureds,” Rivers said. The formation in 2020 of its subsidiary Ocil Specialty will “enhance the company’s product offerings to US energy companies that typically do not access insurance coverage in Bermuda”, he added

Bertil Olsson, OCIL president and CEO, said the US operations began actively underwriting risks in May 2021 and had received a positive response from brokers and insureds. OCIL had also scaled up its assumed reinsurance operations, he added.

During the AGM, OCIL appointed John Talarico as chair of the board and Anne Chalmers as deputy chair.

Last year was OCIL’s 35th anniversary.