The AEGIS mutual model delivered on its promise in 2018 to provide members with the best long-term value for insuring their assets and operations.

Letter to our Membership

We are pleased to report another very good year for your mutual. The AEGIS mutual model delivered on its promise in 2018 to provide members with the best long-term value for insuring their assets and operations. The AEGIS model is a unique alternative to the commercial insurance market because it’s structured with the sole objective of managing your premium and losses to deliver the lowest long-term cost of risk.

Despite several significant member losses and lower investment returns, our financial strength reached record levels, claims were paid quickly and efficiently, and we expanded our underwriting product offerings, policy limits and member credit programs.

Our gross premiums written were $1.57 billion – up 17% from the previous year. Member support of new and existing coverages and growth in several diverse classes of business in London contributed to this strong growth. We were pleased to pay more than $723 million in claims to policyholders in 2018, which brought the total amount of claims paid since AEGIS was founded in 1975 to more than $17.1 billion.

At the same time, we increased our policy limits for Excess Liability, D&O, Property and Cyber; formed an alliance with a leading renewable energy partner providing up to $400 million in wind and solar energy property limits; launched a new Generation Outage product; and enhanced virtually every component of our premium credit program – including a new member loyalty credit – which increased the pool of member credits by 34% for the 2018-2019 credit year.

Also in 2018, the AEGIS Loss Control team completed 192 member service visits, conducted more than 1,000 risk assessments, hosted 11 energy industry-specific webinars, and trained more than 1,700 utility employees at member companies. These efforts underscore our commitment to safety and training, and they support the day-to-day operations at member companies. The aggregation and sharing of loss control information provides important data and operational detail that is used by the membership to help operate safe and reliable systems.

The industry knowledge and expertise of our members, brokers, Board of Directors, Risk Management Advisory Committee (RMAC) and AEGIS employees in North America and London drive the AEGIS model, and for that we are most grateful. Together, we created tremendous value in 2018, and we look forward to building on this success in the year ahead.

Wesley W. von Schack

Chairman of the Board

William P. Cullen

President & CEO

2018 Results

The value produced by the AEGIS model reached new levels in 2018.

Gross Premiums Written Mutual and Syndicate 
($ millions)

Policyholder Surplus 
($ millions)

Member Credits Declared 
($ millions)

Gross Premium by Line of Business 
Mutual and Syndicate (Nominal)

Gross premiums written: $1.57 billion

Policyholder surplus reached record: $1.64 billion

Combined ratio: 88%

Claims paid to policyholders: $723 million

Member credits declared: increased 34%

Gross investment return: $53 million

Member retention ratio: 99%

A.M. Best rating: “A” Stable



With more than 60 member company representatives serving on our Board of Directors, RMAC and Task Forces, it’s inevitable that some will move on to begin new chapters in their professional and personal lives. Fortunately for AEGIS, there are always plenty of members willing to step in and support their mutual.

Three members of the AEGIS Board of Directors chose not to stand for re-election in 2018. Christopher Johns, President and Vice Chairman (retired) – Pacific Gas & Electric, Ronald Litzinger, President (retired) – Edison Energy Group, and William Timmerman, Chairman & CEO (retired) – SCANA Corporation, resigned from the Board and were elected to the position of Director Emeritus. We thank them for their many valuable contributions to AEGIS and wish them all the best in the future.

On the AEGIS London Board of Directors, W.R.P. Dalton stepped down as Chairman upon his retirement. Prior to serving as Chairman, Bill was a member of the AEGIS and AEGIS London Boards for many years, beginning in 2004, and he held senior leadership positions at HSBC. We thank Bill for his guidance during a period characterized by significant challenges and tremendous growth, and wish him all the best in the future. Thomas G.S. Busher, previously head of the London Board’s Risk Committee and a member of the AEGIS Board since 2016, has succeeded Bill. Tom is the former Chief Operating Officer, Director and Deputy Chairman at Montpelier Re. We welcome Tom to his new role, and we are grateful for his ongoing contributions to AEGIS.

The AEGIS Risk Management Advisory Committee (RMAC) welcomed four new members: Tim Bucci, Director, Risk Management & Insurance – The Williams Companies; Gregg Crenshaw, Director, Corporate Risk Management – Dominion Energy; Lisa Groff, Vice President and Chief Risk Officer – American Electric Power; and Julie Yount, Insurance Program Manager – Puget Sound Energy. We are grateful to these AEGIS members for their willingness to contribute their time and expertise to the RMAC, and we look forward to their contributions.

On the RMAC’s Enterprise Risk Management (ERM) Task Force, Steve Haynes stepped down when he accepted a new role at American Electric Power (AEP) as Senior Vice President – Strategy & Innovation. Keith Bone stepped down from the Claims Task Force upon his retirement from Duke Power, where he was the Director of Insurance & Claims. We thank them both for their many valuable contributions to the Task Forces and wish them all the best in the future.

Two members joined the Loss Control Task Force in 2018: Randy Murdaugh, Senior Risk Manager at Associated Electric Cooperative, and David Heller, Vice President of Risk Management and Chief Audit Executive at Edison International. We look forward to their contributions

Five-Year Financial Highlights

Associated Electric & Gas Insurance Services Limited

For the years ended December 31 (Expressed in thousands of U.S. dollars)

Scroll the table to see additional data.

2014 2015 2016 2017 2018
Gross premiums written $1,348,493 $1,250,510 $1,236,475 $1,344,705 $1,567,145
Net premiums written 943,102 860,121 821,955 880,647 1,028,021
Net premiums earned 897,966 892,685 838,455 852,131 961,028
Net investment income (loss) 83,037 (16,791) 117,725 147,935 58,073
Change in fair value of insurance and reinsurance contracts (42,587) 28,642 (22,333) (31,284) (1,630)
Total revenue 938,416 904,536 933,847 968,782 1,017,471
Losses and loss expenses incurred 566,668 518,745 556,630 567,905 594,727
Commission expenses 110,272 97,077 82,589 98,172 122,340
Other underwriting expenses 131,231 111,434 99771 105,091 129,389
Total expenses 808,171 727,256 738,990 771,168 846,456
Income before continuity and other premium credits and income taxes 130,245 177,280 194,857 197,614 171,015
Continuity and other premium credits 20,796 19,964 29,275 37,837 44,709
Income before income taxes 109,449 157,316 165,582 159,777 126,306
Income tax provision 42,581 70,162 53,467 27,050 26,199
Net income $66,868 $87,154 $112,115 $132,727 $100,107
Other comprehensive (loss) income, net income tax (benefit) expense (1,504) (18,596) 26,478 (4,160) (21,244)
Total surplus, beginning of year $1,156,183 $1,221,547 $1,290,105 $1,428,698 $1,557,265
Total surplus, end of year $1,221,547 $1,290,105 $1,428,698 $1,557,265 $1,636,128
Total assets $6,037,151 $5,718,282 $6,087,210 $6,512,136 $7,073,674
Reserve for losses and loss expenses $3,165,788 $2,879,855 $3,068,261 $3,306,617 $3,659,832

The Company has reclassified certain prior year amounts to conform to the current year's presentation.

For details on our 2018 financial results, please visit


Our mutual efforts are guided by these experienced executives and professionals drawn primarily from the member companies we serve. They generously contribute their time and expertise, and they are essential to our success.


Board of Directors


Gregory E. Abel

Vice Chairman – Non-Insurance

Business Operations

Berkshire Hathaway Inc.


Berkshire Hathaway Energy Company


Robert W. Best

Director & Former Chairman

Atmos Energy Corporation


Thomas G.S. Busher


AEGIS London

Former Chief Operating Officer and Deputy


Montpelier Re


Christopher M. Crane

President & CEO

Exelon Corporation


William P. Cullen

President & CEO

AEGIS Insurance Services, Inc.

Thomas F. Farrell, II

Chairman, President & CEO

Dominion Energy, Inc.


Walter M. Higgins


South Jersey Industries


James J. Jura

CEO & General Manager, Retired

Associated Electric Cooperative, Inc.


Constance H. Lau

President & CEO

Hawaiian Electric Industries, Inc.


Charles A. Schrock

Chairman & CEO, Retired

Integrys Energy Group, Inc.


Wesley W. von Schack


Associated Electric & Gas Insurance

Services Limited



Wesley W. von Schack

Chairman of the Board


Gregory E. Abel

Vice Chairman


William P. Cullen

President & CEO


William L. Hillman

Assistant Vice President &

Chief Underwriting Officer


Michael S. Johnson



Simon J. Day



Rip Reeves



Patricia L. McKenna

Assistant Treasurer


Mark A. Walsh



Elda B. Feldman

Assistant Secretary

AEGIS London Board of Directors


Thomas G.S. Busher



David Croom-Johnson

Managing Director


Gregory E. Abel

John Chambers

Christopher M. Crane

Thomas F. Farrell, II

Christopher Forbes

Jonathan Gray

Michael Onslow

Alex Powell

Hermien Smeets-Flier

Graeme Tennyson

Wesley W. von Schack

Matthew C. Yeldham

Risk Management Advisory Committee (RMAC)


Wesley W. von Schack

Associated Electric & Gas Insurance Services Limited


Johan G. Bramer

TransCanada Corporation


Timothy R. Bucci

The Williams Companies, Inc.


Denise M. Cosentino

Eversource Energy


Gregg Crenshaw

Dominion Energy, Inc.


John Frank

Basin Electric Power Cooperative


Deborah S. Gaffney

Southern Company


Lisa R. Groff

American Electric Power Company, Inc.


David A. Layne

Algonquin Power & Utilities Corp.

Janaize Markland

Pacific Gas & Electric Company


Joseph T. Meaney, Jr.

The AES Corporation


Michael A. Mee

Exelon Corporation


Robert L. Miller

Xcel Energy Inc.


Peter M. Nadel

FirstEnergy Corp.


H. Wayne Soza

El Paso Electric Company


James M. Vacek

CenterPoint Energy, Inc.


Julie A. Yount

Puget Sound Energy, Inc.

Enterprise Risk Management (ERM) Task Force


Denise M. Cosentino

Eversource Energy


Christopher Eaton

Enbridge Inc.


Janaize Markland

Pacific Gas & Electric Company


H. Wayne Soza

El Paso Electric Company

Evolving Utility Industry Risk Task Force


J.P. Agnesse

Portland General Electric Company


Lisa R. Groff

American Electric Power Company, Inc.


Kirk A. Kelley

Tennessee Valley Authority


George W. Marget III, Esq.

Dominion Energy, Inc.


Ronald D. Rispoli

Entergy Services, Inc.


Richard Sayette

Exelon Corporation


Frank Stanbrough

Southwest Gas Corporation

Claims Task Force


David P. Abernathy, Esq.

Spire Inc.


Derek W. Boyd

Atmos Energy Corporation


Kirk A. Cresto

NiSource Corporate Services


C. Larry Davis, Esq.

San Diego Gas & Electric Company


Bryony Hodges, Esq.

Dominion Energy, Inc.


Judy Y. Liu, Esq.

CenterPoint Energy Service

Company, LLC

George W. Marget III, Esq.

Dominion Energy, Inc.


Douglas J. McKay, Esq.

Consolidated Edison Company of

New York


Timothy J. Saviano, Esq.

WEC Energy Group


Mark J. Sweeney, Esq.

Pacific Gas & Electric Company

Loss Control Task Force


Mark Boone

Dominion Energy, Inc.


Robert Brandkamp

Avista Corporation


Mariya Coleman

Berkshire Hathaway Energy Company


Robert A. Green

PSEG Services Corporation


David Heller

Edison International


Lisa Hough

Omaha Public Power District


John Mellette

Dominion Energy, Inc.

Sandy Meyers

City Utilities of Springfield


Randy W. Murdaugh

Associated Electric Cooperative, Inc.


John C. Norman



Ronald D. Rispoli

Entergy Services, Inc.


Scott Wibbenmeyer

Ameren Services Company




Associated Electric & Gas 

Insurance Services Limited

The Maxwell Roberts Building

Fourth Floor

One Church Street

Hamilton, Bermuda HM11


Telephone: 441.296.2131


AEGIS Insurance Services, Inc.

1 Meadowlands Plaza

East Rutherford, NJ 07073


Telephone: 201.508.2600

Fax: 201.896.6638

Claims fax: 201.508.1451





AEGIS London

AEGIS Managing Agency Limited

33 Gracechurch Street

London EC3V 0BT England







2019 AEGIS Meetings


Annual Meeting

The Annual General Meeting of Members of the Company will be held on October 24, 2019. Notice of the Meeting and the form of proxy will be issued to each voting Member not less than ten days before the meeting convenes, stating the date, place, time and nature of the business to be considered.


Policyholders’ Conference

The annual AEGIS Policyholders’ Conference will be held July 15 to 18, 2019, in Boston, MA. Registration information will be e-mailed and posted on our website.


Other Meetings and Seminars

AEGIS will also host a series of regional member meetings, Claims Roundtable seminars, and a number of underwriting, claims and loss control seminars and webinars throughout 2019. Please visit for details.

Associated Electric & Gas Insurance Services Limited (“AEGIS”) was incorporated in Bermuda in 1971 and commenced underwriting activities in 1975. AEGIS is a Class 3 Insurer in Bermuda.

AEGIS is a Class 3 Insurer in Bermuda. AEGIS is an eligible surplus lines insurer in all jurisdictions of the United States. It is subject to United States federal income taxes, files the required tax returns, and maintains a United States trust fund in excess of $250,000,000. AEGIS is also a licensed foreign insurance company in all provinces and territories of Canada and is listed on the general register of foreign reinsurers in Mexico.

AEGIS’ operations are conducted through a wholly-owned subsidiary, AEGIS Insurance Services, Inc. (“AEGIS Services”), which provides AEGIS and its affiliates with professional staff and services.

AEGIS London (the AEGIS Syndicate at Lloyd’s of London, number 1225) commenced operations in 1999. AEGIS London’s operations are supported by AEGIS Managing Agency Limited (“AMAL”), which provides professional staff and services for AEGIS London. AEGIS Electric & Gas International Services Limited (“AEGIS International”) is a corporate member of Lloyd’s and the principal capital provider of AEGIS London. Both AMAL and AEGIS International are indirect subsidiaries of AEGIS.

In the U.S., AEGIS; AEGIS & Design; the AEGIS Logo (any reference to “Logo” or “Design” are references to the AEGIS Diamonds Design); AEGISLINK; HOW SAFE; PEOPLE DON’T KNOW WHAT THEY DON’T KNOW; LESSONS LEARNED; AEGIS LONDON; and AEGIS LONDON & Design are registered trademarks of AEGIS.

In the U.K., AEGIS; AEGIS LONDON; and AEGIS LONDON & Design are registered trademarks of AEGIS.

In the E.U., AEGIS; AEGIS & Design; the AEGIS Logo; AEGISLINK; AEGIS LONDON; and AEGIS LONDON & Design are registered Community trademarks of AEGIS.

In Bermuda, AEGIS; and the AEGIS Logo are registered trademarks of AEGIS.

In New Zealand, AEGIS is a registered trademark of AEGIS.

In Canada, AEGIS; AEGIS & Design; AEGIS CANADA; the AEGIS Logo; AEGIS LONDON; and AEGIS LONDON & Design are registered trademarks of AEGIS.

©2019 Associated Electric & Gas Insurance Services Limited and AEGIS Insurance Services, Inc.

All rights reserved.