AEGIS 2019
Annual Review


AEGIS is the stable alternative to the commercial insurance markets. Created in 1975 to provide coverage that members could not secure elsewhere, our mission is as relevant in 2020 as it was then. Members depend on our stable coverage year after year, especially in today’s turbulent times, when commercial insurers withdraw their support for the energy industry.

Letter to our Membership

We are pleased that our partnership with members produced another strong year for your mutual, with policyholder surplus reaching an all-time high of $1.78 billion. It has been said that if AEGIS did not exist it would need to be created. This assertion could not have been truer than it was in 2019, when the commercial insurance markets reduced available limits, excluded specific perils and dramatically increased premiums in the energy sector based on concerns ranging from climate change to deteriorating claims trends. AEGIS, true to its mutual mission, stepped in to provide expanded limits, consistent coverage and a stable approach to pricing, which helped members manage their evolving risks.

Our total gross premiums written for the Group, which consists of our mutual and AEGIS London operations, were $1.82 billion, an increase of 16% from the previous year. Premium revenues for the mutual alone topped $1 billion for the first time, as members turned to AEGIS to purchase new or expanded limits for excess liability, property and renewable energy. We were also pleased to pay more than $1 billion in claims to policyholders in 2019. This is the highest level we have paid in any single year, and brought the total amount of claims paid since AEGIS was founded in 1975 to more than $18 billion.

In addition to paying a record high level of claims, we declared $66 million in premium credits to policyholders in 2019, which brings the total amount of premium credits over the life of the credit programs to $1.33 billion. These credits include $10.8 million in our new Member Loyalty Credits. Our premium credit programs help lower the long-term cost of risk for members, which is yet another benefit that distinguishes AEGIS from the commercial markets.

Our stability and our ability to serve members year after year is no accident. We are always looking ahead to anticipate member needs, and we are investing in resources to support our mutual mission. Expecting that the commercial insurance markets would constrict as they did in 2019, we began building our property consortium in 2014, expanded our excess liability capacity in 2017, and formed our renewable energy alliance in 2018. With the same foresight, we are also building more robust loss control data analytics to help differentiate each member’s loss profile.

Our investment in AEGIS London has consistently delivered a contribution to policyholder surplus growth for 15 years in a row and it is recognized as a top-quartile syndicate at Lloyd’s of London. Across the Group, we continue to hire leading industry talent in order to maintain a strong, stable management team, and we recently added senior executives in the Underwriting, Loss Control and Information Technology divisions.

The strong results generated in 2019 would not have been possible without the industry expertise and commitment of our members, brokers, Board of Directors, Risk Management Advisory Committee (RMAC), Task Forces and AEGIS employees in North America and London. We are grateful for their countless contributions and we are confident that we will continue to build on this success in 2020.

Wesley W. von Schack

Chairman of the Board

William P. Cullen

President & CEO

2019 Group Results

Gross premiums written:  $1.82 billion

Policyholder surplus reached record: $1.78 billion

Combined ratio: 96%

Claims paid to policyholders since 1975: $18 billion

Gross investment return: 6.4%

Total assets: $7.9 billion

Member retention ratio: 98%

A.M. Best rating: “A” Stable

Five-Year Financial Highlights

Associated Electric & Gas Insurance Services Limited

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

2015 2016 2017 2018 2019
Gross premiums written $1,250,510 $1,236,475 $1,344,705 $1,567,145 $1,815,733
Net premiums written 860,121 821,955 880,647 1,028,021 1,156,788
Net premiums earned 892,685 838,455 852,131 961,028 1,071,783
Net investment income (loss) (16,791) 117,725 147,935 58,073 218,981
Change in fair value of insurance and reinsurance contracts 28,642 (22,333) (31,284) (1,630) (59,873)
Total revenue 904,536 933,847 968,782 1,017,471 1,230,891
Losses and loss expenses incurred 518,745 556,630 567,905 594,727 753,158
Commission expenses 97,077 82,589 98,172 122,340 137,038
Other underwriting expenses 111,434 99,771 105,091 129,389 137,460
Total expenses 727,256 738,990 771,168 846,456 1,027,656
Income before continuity and other premium credits and income taxes 177,280 194,857 197,614 171,015 203,235
Continuity and other premium credits 19,964 29,275 37,837 44,709 58,817
Income before income taxes 157,316 165,582 159,777 126,306 144,418
Income tax provision 70,162 53,467 27,050 26,199 26,483
Net income $87,154 $112,115 $132,727 $100,107 $117,935
Other comprehensive (loss) income, net income tax (benefit) expense (18,596) 26,478 (4,160) (21,244) 28,490
Total surplus, beginning of year 1,221,547 1,290,105 1,428,698 1,557,265 1,636,128
Total surplus, end of year $1,290,105 $1,428,698 $1,557,265 $1,636,128 $1,782,553
Total assets $5,718,282 $6,087,210 $6,512,136 $7,073,674 $7,868,164
Reserve for losses and loss expenses $2,879,855 $3,068,261 $3,306,617 $3,659,832 $4,028,487

Scroll the table to see additional data.

Stability enables us to focus on enhancing existing products and services, and developing new ones.

As a mutual, we’re committed to the energy industry for the long term. We don’t retreat when times are tough. Instead, we stay put and remain focused on providing members with the products and services they need.

In the past two years, we introduced these new products and enhancements:

  • A Member Loyalty Credit for members who purchase four or five out of seven AEGIS coverages
  • Cyber liability coverage for small to midsize policyholders
  • Contingent outage and capacity performance policies for electric utilities
  • Increased capacity for members with renewable exposures through an alliance with a leading renewable underwriter

In the Loss Control area, we’re looking at new ways to leverage our vast amount of energy industry data to help members improve the safety and reliability of their operations.


Two members of the AEGIS Board of Directors chose not to stand for reelection in 2019. Walter M. Higgins, Chairman of South Jersey Industries, and James J. Jura, CEO & General Manager, Retired, of Associated Electric Cooperative, 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. We are pleased to welcome two new members to the AEGIS Board of Directors: Lisa D. Johnson, CEO & General Manager of Seminole Electric Cooperative, and Patricia K. Poppe, President & CEO of CMS Energy Corporation. We look forward to their contributions.

On the RMAC’s Enterprise Risk Management Task Force, Christopher Eaton, Director of Risk, Standards & Assurance at Enbridge, stepped down, and Lisa Groff of American Electric Power Company was promoted to Chief Risk Officer and moved from the Evolving Utility Industry Risk Task Force to the Enterprise Risk Management Task Force. George W. Marget, Deputy General Counsel at Dominion Energy, stepped down from the Evolving Utility Industry Risk Task Force but continues to serve on the Claims Task Force.

Teresa Minor, Director of Risk Services at Alabama Power Company, and Marie Ruettgers, Associate General Counsel at Black Hills Corporation, joined the Claims Task Force. We welcome them to their new roles and look forward to their contributions.

Three members left the Loss Control Task Force in 2019. Robert Green, Insurance and Risk Manager at PSE&G and one of the longest-serving task force members, stepped down in anticipation of his retirement. John Mellette volunteered to leave the task force after SCANA was acquired by Dominion Energy. John continues to work for Dominion as Corporate Risk Specialist. Scott Wibbenmeyer, Director of Renewable and Technical Business Development at Ameren, stepped down due to the added responsibilities of his new position. Two new members joined the Loss Control Task Force: Eileen Bate, Manager of Insurance at TransAlta, and Heidi Gossett, Director of Corporate Insurance at NiSource. We welcome them to their new roles and look forward to their contributions.

At AEGIS, we welcomed three senior executives to our management team. Scott Schenker joined as Senior Vice President and Chief Information Officer, with an extensive background in the insurance and financial services industries, including his most recent role as Senior Vice President and Global Chief Information Officer for Arch Capital Services. Tim Heinze joined as Senior Vice President and Head of the Loss Control Division. Tim comes to AEGIS from AXA XL, where he was Chief Operating Officer, North American Property, with responsibility for the tactical and strategic planning for property and engineering services. Tom Kelly joined the Underwriting Division as Senior Vice President and Chief Risk Officer. Tom comes to AEGIS with a diversified background in the P&C insurance and reinsurance industry. He most recently served as Chief Operating Officer at Allied World Assurance Company, and was previously at Allied World Reinsurance, where he served as Chief Underwriting Officer and Chief Operating Officer.


Our mutual efforts are guided by these experienced executives and professionals drawn 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 Chairman

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.


Lisa D. Johnson

CEO & General Manager

Seminole Electric Cooperative, Inc.


Constance H. Lau

President & CEO

Hawaiian Electric Industries, Inc.


Patricia K. Poppe

President & CEO

CMS Energy Corporation


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

CFO & Controller


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



Christopher Forbes

Deputy Chairman


David Croom-Johnson

Managing Director


Gregory E. Abel

Christopher M. Crane

Thomas F. Farrell, II

Jonathan Gray

Michael Onslow

Alex Powell

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

TC Energy 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


Julia A. Milbrandt

Puget Sound Energy, Inc.


Robert L. Miller

Xcel Energy Inc.


Peter M. Nadel

FirstEnergy Corp.


H. Wayne Soza

El Paso Electric Company


James M. Vacek

CenterPoint Energy, Inc.

Enterprise Risk Management (ERM) Task Force


Denise M. Cosentino

Eversource Energy


Lisa R. Groff

American Electric Power Company, 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


Kirk A. Kelley

Tennessee Valley Authority


Ronald D. Rispoli

Entergy Services, LLC


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 Inc.


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


Teresa Minor

Alabama Power Company


Marie Ruettgers

Black Hills Corporation


Timothy J. Saviano, Esq.

WEC Energy Group


Mark J. Sweeney, Esq.

Pacific Gas & Electric Company

Loss Control Task Force


Eileen Bate

TransAlta Corporation


Mark S. Boone

Dominion Energy, Inc.


Robert Brandkamp

Avista Corporation


Mariya Coleman

Berkshire Hathaway Energy Company


Heidi Gossett

NiSource Inc.


David J. Heller

Edison International


Lisa Hough

Omaha Public Power District

Sandy Meyers

City Utilities of Springfield


Randy W. Murdaugh

Associated Electric Cooperative, Inc.


John C. Norman



Ronald D. Rispoli

Entergy Services, Inc.


Corporate Information



Associated Electric & Gas
Insurance Services Limited
6th Floor, 141 Front Street
Hamilton, HM 19

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







2020 AEGIS Meetings

Annual Meeting

The Annual General Meeting of  Members of the Company will be held on October 22, 2020. 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.

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 2020. 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 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.

©2020 Associated Electric & Gas Insurance Services Limited and AEGIS Insurance Services, Inc.

All rights reserved.