need us.


Annual Review

Five-Year Financial Highlights

Associated Electric & Gas Services Limited

For the years ended December 31,
(Expressed in thousands of U.S. dollars)
2016 2017 2018 2019 2020
Gross premiums written $1,236,475 $1,344,705 $1,567,145 $1,815,733 $2,092,383
Net premiums written 821,955 880,647 1,028,021 1,156,788 1,322,551
Net premiums earned 838,455 852,131 961,028 1,071,783 1,213,640
Net investment income 117,725 147,935 58,073 218,981 112,999
Change in fair value of insurance and reinsurance contracts (22,333) (31,284) (1,630) (59,873) (45,684)
Total revenue 933,847 968,782 1,017,471 1,230,891 1,280,955
Losses and loss expenses incurred 556,630 567,905 594,727 753,158 795,950
Commission expense 82,589 98,172 122,340 137,038 149,883
Other underwriting expenses 99,771 105,091 129,389 137,460 131,122
Total expenses 738,990 771,168 846,456 1,027,656 1,076,955
Income before continuity and other premium credits and income taxes 194,857 197,614 171,015 203,235 204,000
Continuity and other premium credits 29,275 37,837 44,709 58,817 63,346
Income before income taxes 165,582 159,777 126,306 144,418 140,654
Income tax provision 53,467 27,050 26,199 26,483 28,387
Net income $112,115 $132,727 $100,107 $117,935 $112,267
Other comprehensive income (loss) and other surplus changes, net of income tax (benefit) expense 26,478 (4,160) (21,244) 28,490 5,414
Total surplus, beginning of year $1,290,105 $1,428,698 $1,557,265 $1,636,128 $1,782,553
Total surplus, end of year $1,428,698 $1,557,265 $1,636,128 $1,782,553 $1,900,234
Total assets $6,087,210 $6,512,136 $7,073,674 $7,868,164 $8,629,627
Reserve for losses and loss expenses $3,068,261 $3,306,617 $3,659,832 $4,028,487 $4,351,822

Letter to our Membership

This was a year that reminded everyone why AEGIS was formed. 
The global pandemic, the resulting volatility in the financial markets, and the disruption in the commercial insurance market created significant challenges for our members.
     Just as AEGIS has done every year since 1975, we were here when you needed us. The expanded limits and new products we developed over the past five years were in place and ready to respond to member needs in 2020. We also added the underwriting and loss control resources needed to support them. The expanded limits were particularly welcomed by members because many commercial carriers withdrew their support for the energy sector.
    Despite the unforeseen and unprecedented challenges of 2020, we achieved several significant financial milestones. Thanks to member support of our stable approach to underwriting and our expanded limits, gross premiums written reached $2.1 billion and policyholder surplus topped $1.9 billion, both of which are the highest levels in the history of the company. We also paid a record amount in claims, $1.1 billion, bringing the total amount of claims paid since AEGIS was founded to more than $19 billion.
    In addition, we delivered $63 million in premium credits in 2020. The credits have increased steadily over the past five years, with total credits paid to members exceeding $1.4 billion since the program began. Premium credits lower premium costs over the long term, which is yet another benefit that distinguishes AEGIS from the commercial insurance market.
    Our operations in London continue to contribute significantly to policyholder surplus. AEGIS London is recognized as a top-quartile syndicate at Lloyd’s of London in terms of profitability and claims management, and its diverse book of business helps balance the risks associated with the energy sector.   

    The strong results we delivered in 2020 would not have been possible without the dedication and industry expertise of our members, brokers, Board of Directors, Risk Management Advisory Committee (RMAC), Task Forces and AEGIS employees in North America and London. We sincerely thank you.
    We were deeply saddened when Tom Farrell, the Executive Chairman of Dominion Energy and a member of the AEGIS Board of Directors and AEGIS London Board of Directors, passed away on April 2, 2021. At Dominion, Tom served as the company’s Chairman, President and CEO from 2007 to 2020, where he championed the development of clean energy assets, advances in workplace safety, and diversity and inclusion. He also gave generously of his time and talents to a number of industry and philanthropic boards.
    Tom joined the AEGIS Board in 2014 and served on our Executive, Audit & Finance, and Compensation & Benefits Committees. He was a member of the AEGIS London Board as well, and served on its Audit, Remuneration & Nominations, and Risk Committees. Tom was always ready to give wise counsel and support, as he believed strongly in the mutual mission. He made countless contributions to help ensure our long-term stability and success, while putting the needs of members first. Above all, Tom was a valued friend, and he will be greatly missed.  

Wesley W. von Schack
Chairman of the Board

William P. Cullen
President & CEO

April 15, 2021  


Members who renew their policies with AEGIS are eligible for premium credits that help lower the long-term cost of risk, which is one of the important ways AEGIS differs from the commercial insurance market. An additional credit — the Member Loyalty Credit — is paid to members who purchase multiple AEGIS products in a given year.

A full range of products

We continued to provide broad, market-leading coverage across all product lines in 2020. Member support for our fair pricing, which is based on technical underwriting and the risk exposure of each individual member company, enables us to provide the coverage and pay claims year after year.

Excess Liability

  • Limits up to $70 million per occurrence/$140 million aggregate
  • Claims first made/indemnity form
  • Policy attaches excess of a self-insured retention or underlying policy
  • Separate aggregates for pollution and employment practices liability
  • Coverage available for energy-related construction projects
  • Affirmative coverage grants for worldwide premises and operations, products/completed operations, wildfire

Excess Workers’ Compensation

  • Limits up to $35 million each accident/each employee
  • Policy is specifically written for qualified self-insured risks
  • Occurrence/indemnity form   


  • Limits up to $500 million are available through our Property Consortium
  • All risk coverage for operational and construction
  • Machinery breakdown
  • Generation from all fuel sources
  • Earthquake, windstorm and flood
  • Business interruption/delay in start-up (DSU)
  • Hot testing
  • Pollution cleanup and removal  

Renewable Energy

  • Limits up to $275 million
  • Coverage written 100% on AEGIS paper
  • Operational and construction risks including solar, battery storage facilities, and onshore and offshore wind assets
  • New team of renewable underwriting specialists


  • Limits up to $50 million per generating unit per policy
  • Coverage for unplanned outage and derates
  • Coverage available in the NYISO, NEPOOL, PJM, Cal ISO, ERCOT, MISO and SPP regions
  • One-year policy period
  • Simple, straightforward settlement process   

Capacity Performance

  • Limits up to $100 million
  • Coverage for non-performance charges
  • 12 types of emergency actions are covered
  • Policy generally runs June through May
  • Event duration is 365 days
  • Ability to cover multiple plants on one policy

Directors & Officers Liability

  • Limits up to $50 million
  • No pollution exclusion
  • Defense cost definition includes expenses incurred by directors and officers in connection with SOX and Dodd-Frank compensation repayment
  • Coverage may only be canceled for non-payment
  • Broad entity cover available for cooperatives and public power risks


  • Limits up to $30 million on primary or excess basis
  • Policies are underwritten and serviced through Sompo but AEGIS portion of premiums counts toward member credit programs
  • Broad difference in conditions coverage
  • Broad definition of claim
  • Non-cancelable policy (except for non-payment of premium)

Professional Liability

  • Limits up to $25 million
  • Policy written on a claims made and reported basis
  • Coverage for economic injury

Cyber Liability

  • Limits up to $75 million
  • Coverage for both enterprise and industrial control systems
  • No nation-state or terrorism exclusions
  • Contingent business interruption, system failure and bricking coverage extensions
  • AEGIS Incident Response Panel and pre-/post-breach vendors available on AEGIS eRiskHub


  • Admitted paper occurrence-based policies
  • Dedicated Everest energy underwriting team
  • Primary programs specifically designed for energy risk
  • Special programs for railroad protective policies and insurance certificates

Consistently delivering outstanding results

Policyholder surplus and gross premiums written both reached record highs in 2020 thanks to member support of our stable coverage and expanded limits. Even as we added products, services and professional staff to meet member needs, we managed expenses closely and paid a record high level of claims and member credits.





2020 Group Results







SINCE 1975








SINCE 1975



We believe capacity and foresight go hand in hand. Anticipating that the market would tighten, we built our Property Consortium and increased our excess liability, D&O and cyber limits several years ago so members would have the capacity when they needed it. In 2020, looking ahead to the need for renewable capacity and expertise, we expanded AEGIS renewable capacity and hired a team of seasoned renewable energy underwriters.

Higher limits to meet member needs

Members took advantage of expanded limits across all lines, including excess liability, directors & officers liability, property and cyber. At a time when the commercial insurance market restricted capacity or withdrew from the energy sector entirely, we increased limits and added underwriters to keep pace with demand for our products.


  • 2010 $35M/$70M
  • 2020 $70M/$140M

per occurrence



  • 2010 $200M
  • 2020 $500M


  • 2010 $35M
  • 2020 $50M  


  • 2015 $50M
  • 2020 $75M

We keep a close eye on member needs through our regional member meetings, renewal meetings, member contact team calls, claims discussions, risk assessments, webinars and training sessions. When we sense that additional staff, new products and services, and new approaches are needed, we are prepared to provide them while maintaining our consistently low expense ratio.

New people, new services, new initiatives

We added to our capabilities across all areas of the company in 2020. Our singular focus on the energy industry has earned us a reputation for being energy risk management experts, and we strengthened this expertise to help support member needs for coverage, loss control services and timely information.



  • 2010 17
  • 2020 34

The number of underwriters has doubled in the past ten years in response to member demand for AEGIS products across all lines, including excess liability, property, contingent outage, renewables, D&O and cyber. In recent years, we have doubled the number of traditional property underwriters and made strategic additions to the excess liability and D&O teams as well. In 2020, we added a team of renewable energy underwriters led by Tom Cain, Vice President & Renewable Energy Product Manager. Tom’s group is supported by the AEGIS Loss Control Renewable Energy Working Groups, which provide renewables engineering and loss control expertise to members, and by the AEGIS Claims team, which brings the collaborative approach to managing claims that has always distinguished us from the commercial insurance market.



  • 2010 32
  • 2020 51

The team of AEGIS Loss Control professionals has grown dramatically in the past ten years. As members have purchased more property and renewables coverage, the need for account reviews, risk assessments, training and consulting services has grown as well. When the pandemic restricted travel and access to member facilities in 2020, we found new ways to conduct risk assessments, training programs and incident investigation workshops virtually through video sharing and other collaborative technology. While hands-on risk assessments and face-to-face training have their advantages, members have also discovered value in the virtual options. Virtual classes can be larger because there are fewer limitations on classroom space and other resources, and without the time and expense of travel, training is more accessible to geographically dispersed teams.


  • 201016%
  • 20205%4% 9%

expense ratio

pandemic-related savings


Our Loss Control division is launching its new RADAR system to provide members with the real-time status of their risk assessments and digital copies of the risk assessments. Members can also use RADAR to compare the risk profiles of their individual facilities with each other and benchmark their company’s overall risk profile against the risk profiles of other member companies with similar operations. Over time, as the system amasses and analyzes data, we will be able to identify loss trends and model practices across the membership. This will help improve the safety and reliability of operating systems, and reduce the long-term cost of risk for member companies and the mutual as a whole.


We refreshed the look of our website in 2020 and used responsive design so the experience is optimized for mobile phones, tablets and laptops. The content is continuously updated to provide the information members need to navigate the pandemic and the constricting commercial insurance market, including:

  • AEGIS News e-mails plus two new AEGIS Loss Control e-mail publications – Quick Tips and Perspectives.
  • A searchable library of more than 50 Loss Control educational and training videos that can be accessed directly from the home page without a password so member company employees in the field have easier access.
  • AEGIS Loss Control monthly webinars featuring current topics related to electric, natural gas, property and boiler machinery plant operations, and renewable generation. The webinars are conducted live and then posted to the website. More than 60 webinars are posted and can be viewed anytime from any device.


Janaize Markland, Director, Enterprise and Operational Risk Management and Insurance at Pacific Gas and Electric Company, stepped down from both the Risk Management Advisory Committee (RMAC) and the ERM Task Force upon her resignation from PG&E. Heidi Gossett, Director of Corporate Insurance at NiSource, joined the RMAC after leaving the Loss Control Task Force. Neil Cayabyab, Manager – Insurance and Risk Management at Sempra Energy, joined the RMAC as well.
    Kirk A. Cresto, Vice President, Quality Management at NiSource, stepped down from the Claims Task Force upon his resignation from NiSource. Mark Boone resigned from the Loss Control Task Force after leaving Dominion Energy, where he served as Manager – Corporate Risk Engineering, and joining AEGIS Loss Control as National Property Manager. Gary Escobar, a financial analyst in CPS Energy’s Risk Management Services, and Jackie French, Senior Director Insurance, Litigation & Claims with Ameren Services, joined the Loss Control Task Force.
    We thank the departing members of the RMAC, Claims and Loss Control Task Forces for their many valuable contributions and welcome the incoming members to their new roles.  


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.


  • Gregory E. Abel
  • Vice Chairman – Non-Insurance Business Operations
  • Berkshire Hathaway Inc.
  • Chairman
  • Berkshire Hathaway Energy Company
  • Robert W. Best
  • Director & Former Chairman
  • Atmos Energy Corporation
  • Thomas G.S. Busher
  • Chairman
  • AEGIS London
  • Christopher M. Crane
  • President & CEO
  • Exelon Corporation
  • William P. Cullen
  • President & CEO
  • AEGIS Insurance Services, Inc.

  • Thomas F. Farrell, II
  • Executive Chairman
  • 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
  • CEO
  • PG&E Corporation

  • Charles A. Schrock
  • Chairman & CEO, Retired
  • Integrys Energy Group, Inc.

  • Wesley W. von Schack
  • Chairman
  • Associated Electric & Gas Insurance Services Limited


  • Wesley W. von Schack
  • Chairman of the Board
  • Gregory E. Abel
  • Vice Chairman
  • William P. Cullen
  • President & Chief Executive Officer
  • William L. Hillman
  • Chief Underwriting Officer
  • Michael S. Johnson
  • Chief Financial Officer & Controller
  • Simon J. Day
  • Actuary
  • Rip Reeves
  • Treasurer
  • Patricia L. McKenna
  • Assistant Treasurer
  • Mark A. Walsh
  • Secretary
  • Elda B. Feldman
  • Assistant Secretary


  • Thomas G.S. Busher
  • Chairman

  • Christopher Forbes
  • Deputy Chairman

  • David Croom-Johnson
  • Chief Executive Officer

  • Gregory E. Abel
  • Christopher M. Crane
  • Thomas F. Farrell, II
  • Jonathan Gray
  • Michael Onslow
  • Alex Powell
  • Graeme Tennyson
  • Wesley W. von Schack
  • Katie Wade
  • 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.

  • Neil Cayabyab
  • Sempra Energy

  • Denise M. Cosentino
  • Eversource Energy

  • Gregg Crenshaw
  • Dominion Energy, Inc.

  • John Frank
  • Basin Electric Power Cooperative

  • Deborah S. Gaffney
  • Southern Company
  • Heidi K. Gossett
  • NiSource Inc.

  • Lisa R. Groff
  • American Electric Power Company, Inc.

  • David A. Layne
  • Algonquin Power & Utilities Corp.

  • Joseph T. Meaney, Jr.
  • The AES Corporation

  • Michael A. Mee
  • Exelon Corporation

  • Julie 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.

  • 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, Inc.

  • Richard Sayette
  • Exelon Corporation

  • Frank Stanbrough
  • Southwest Gas Corporation

Claims Task Force

  • David P. Abernathy, Esq.
  • Spire Inc.
  • Derek Boyd
  • Atmos Energy Corporation

  • 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

  • Robert Brandkamp
  • Avista Corporation

  • Mariya Coleman
  • Berkshire Hathaway Energy Company

  • Gary Escobar
  • CPS Energy

  • Jackie French
  • Ameren Services
  • David J. Heller
  • Edison International

  • Lisa Hough
  • Omaha Public Power District

  • Sandy Meyers
  • City Utilities of Springfield, Missouri

  • Randy W. Murdaugh
  • Associated Electric Cooperative, Inc.

  • John C. Norman

  • Ronald D. Rispoli
  • Entergy Services, Inc.

Corporate Information



  • Associated Electric & Gas
  • Insurance Services Limited
  • Sixth Floor
  • 141 Front Street
  • Hamilton, Bermuda HM19
  • 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
  • 25 Fenchurch Avenue
  • London EC3M 5AD England, UK
  • Telephone: 44.207.856.7856
  • Fax: 44.207.856.7890

2021 AEGIS Meetings

Annual Meeting

The Annual General Meeting of Members of the Company will be held on October 21, 2021. Notice of the Meeting and the form of proxy shall 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 2021 AEGIS Policyholders’ Conference will be held virtually. Details 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 Loss Control webinars throughout 2021. 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.

©2021 Associated Electric & Gas Insurance Services Limited and AEGIS Insurance Services, Inc.

All rights reserved.