A group of 70 policyholders—about 10 percent of the accounts whose coverages are reinsured by Energi Re—are so committed to Energi's business plan that they collectively have taken a 36-percent investment stake in the parent company, according to Brian K. McCarthy, the company's founder, president and CEO.
Reinsurance partner Hannover Re is likewise committed to the company's plan and has taken a 28-percent holding; Energi's management holds the remaining shares—about a 35-percent stake, McCarthy says.
One policyholder/investor is Gault Energy, a 150-year-old Westport, Conn., company that provides various energy products and services. “I wanted to align myself with the best [energy] companies in the industry,” says President and CEO Sam Gault. “I wanted to be in a program not only with the best people, but one where, as I continued to do a great job, I would be rewarded for that.” Gault says his company's insurance premiums have dropped over its four year-relationship with Energi.
“What we liked at the very beginning was that policyholders are shareholders of the company,” says Ralph Beutter, chief underwriting officer at insurance partner Inter-Hannover. “That attracts the best-of-class in the sector Energi is active in.”
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