2024 Outlook
The start of 2024 brought some leadership transitions for AEGIS. As of January 1, I have stepped in as our new President and CEO following Bill Cullen's retirement at the end of 2023 after 26 years of dedicated service. Bill Cullen left an impressive legacy of meeting our policyholders' insurance capacity and risk management needs, positioning our London operation as a top-quartile Lloyd's syndicate, as well as taking the company to its strongest financial position ever. We are committed to continuing to deliver to these high standards.
We were in the beneficial position of being able to promote from within to fill in my underwriting responsibilities, with Tom Cain assuming the position of Senior Vice President, Head of Property, and Martin Gaffney, who is now serving as our Senior Vice President, Head of Casualty. I am very confident that Tom and Martin will continue to communicate our underwriting actions clearly to members well in advance of execution, allowing sufficient time for members to manage their insurance programs as effectively as possible. I know they will continue to deliver on the mission of serving the membership with responsive coverage at the lowest cost of risk while maintaining our financial strength for future claims response.
Our industry continues to evolve rapidly and face new risks and exposures. The energy transition brings constant changes to technology, operations and asset ownership. At the same time, insurers wrestle with the increased severity and frequency of natural cat events, including convective storms, wildfires and flash floods. The upward trend of casualty claim severity has not subsided and has contributed to many of our competitors’ recent increased reserving actions. Adding to the complexity is the need for both the energy and insurance industries to manage regulatory and stakeholder pressures, economic volatility, and heightened geopolitical tensions.
Throughout the turmoil, AEGIS continues to remain a steady presence, consistent in our approach and strategy to provide the stability and value our policyholder members have relied on for nearly 50 years. As the energy industry evolves, I am confident that our experienced industry leaders are well poised to ensure that the mutual continues to deliver a strong financial performance to meet the needs of our members and our industry as a whole.
AEGIS is indeed prepared for the future.
With gratitude for your support,
Bill Hillman
2023 AEGIS Financial Results
We will be publishing our 2023 annual review in May with detailed financial results, but we are pleased to report AEGIS had solid financial results for 2023. A key measure of our financial strength is policyholder surplus, and by year-end, it grew to $2.5 billion, which is a new high for the mutual. Strong underwriting results in North America and especially London, combined with strong returns from our conservative investment portfolio, made this growth possible. Gross premiums written also achieved a record high in 2023, reaching $2.8 billion, with $1.5B from the mutual and $1.3B from the syndicate.
2024 Loss Control Webinar Schedule
AEGIS Loss Control is proud to announce its 2024 webinar schedule. Mark your calendars for these one-hour webcast sessions that cover a wide variety of safety and risk management topics of interest to electric, natural gas and water utilities. Risk managers, as well as safety, engineering and operations personnel, are encouraged to attend. Click here to learn more about the important safety programs and resources available to AEGIS members.
2024 Claims Roundtable Schedule
We are pleased to announce the dates and topics of our AEGIS 2024 Claims Roundtables. Maximizing Effectiveness of Jury Research, Focus Groups and Mock Trials will be held Thursday, March 28, and The Importance of Risk Transfer and Enforcing Your Indemnity Rights will be held Thursday, June 6. These one-of-a-kind programs are led by recognized industry faculty, highly experienced in the management and direction of complex claims and litigation issues, and are focused exclusively on educating and preparing attorneys, claims and loss control professionals, and risk managers in the energy industry.
The AEGIS 2024 Claims Roundtables will be held via webinar and Continuing Legal Education (CLE) credits will be offered. Click here to learn more about the AEGIS Claims Roundtables program.
AEGIS 2024 Claims Seminar
Mark your calendar for the AEGIS 2024 Claims Seminar, being held Monday, September 30, through Wednesday, October 2, in Scottsdale, Arizona. AEGIS members and their dedicated outside counsel and brokers will meet to discuss important issues in the management and defense of their claims.
The three-day seminar is an excellent opportunity for claims, risk and litigation professionals to join an impressive group of industry litigators and experts as they share their insights on nuclear verdicts and mega settlements, preparing utility cases for today's jurors, and a variety of other relevant topics to our industry.
Click here for more information on the AEGIS 2024 Claims Seminar.
S&P Global Rating
We are proud to announce that our S&P Global rating has been increased to "A" with a Stable Outlook. This upgrade recognizes that AEGIS is expected to maintain excellent capitalization, supported by solid operating profitability, ensuring we have a strong and stable capacity to meet our members' evolving needs. The strong rating is also attributable to our member support and confidence in our mission to provide stable capacity and a fair approach to claims to our policyholders. Thank you for making AEGIS the leading mutual insurer for the North American energy and utilities industry.
