NU Online News Service, March 29, 2:51 p.m. EDT

Editor's Note: Oil Insurance Ltd. 2010 earnings were incorrectly reported in an earlier version of this article, including the company's 2009 earnings, which were $1.1 billion, and its membership that totals 54 members, of which ExxonMobil is not a member.

Oil Insurance Ltd. reported 2010 net income of $782 million, down 29 percent from the previous year.

In a statement issued yesterday, Hamilton, Bermuda-based OIL—a mutual insurer owned by companies in the energy industry—reports that net income declined $318 million from $1.1 billion in 2009 to $782 million.

The company reports $784 million in written and earned premium while incurring losses totaling $423 million.

OIL's net underwriting income was $362 million with net investment income of $436 million.

“The fact that the company did not suffer any losses from 2010 hurricane activity was a highlight and enabled the company to focus on dealing with expected losses,” says Robert Stauffer, president and CEO of OIL, in a statement. “At the same time, the company was able to finalize, and pay, the remainder of the outstanding loss payments from Hurricanes Katrina and Rita.”

Stauffer notes that in close to 40 years of existence the company has grown to insure nearly $2 trillion of members' global assets secured by more than $3 billion in shareholder's equity and company total assets at the end of the year totaling $5.9 billion.

George Hutchings, senior vice president and COO, adds that with the implementation of changes to its windstorm coverage and its rating and premium plan, internal issues the company faced in 2009 “are considered addressed and resolved.”

“The time is right to focus on external-facing  initiatives with a view to growing our membership—a strategic goal which our membership survey indicates is keenly supported by our shareholders,” Hutchings says.

OIL is comprised of close to 54 energy producers.  

According to Hutchings, the insurer was unaffected by the Deepwater Horizon incident because BP is not a member. He notes that since the incident, the insurer is well positioned to provide an increase in coverage to those who are currently members.

This story was corrected on April 18 reflecting 2009 net income and membership were confused with OIL's sister company Oil Casualty Insurance Ltd.