Oil Insurance Limited (OIL) has modified the definition it uses to classify designated named windstorms (DNWS), in a move designed to minimise the risk of future named storms that originate outside of the Atlantic Basin becoming classified as DNWS.
The new definition judges a windstorm based on the location of its centre, rather than whether a portion of it has entered the Atlantic Basin. The change was effective as of March 24, 2021.
The change was made at OIL’s March 2021 board meeting on March 24, where directors also approved its 2020 financial statements and discussed the development of its strategic plan. Directors also approved a $380 million dividend payment on June 30, 2021, for shareholders of record on March 24, 2021.
OIL recorded a $66.9 million underwriting profit in 2020, with overall net profit for the group coming in at $466.5 million.
Bertil Olsson, OIL’s president and chief executive, said: “The strong performance in 2020 and the robust capital position of the company has enabled us to once again return a significant amount of capital to our shareholders and demonstrate the superior value of the OIL model”.
OIL, Oil Insurance Limited, Bertil Olsson