Message from the President
Bertil C. Olsson

Everen is able to reliably support both traditional and new energy technologies through the energy transition.

It seems every year brings new challenges. As we came out of the pandemic, other issues emerged in 2022. Russia’s invasion of Ukraine has resulted in a humanitarian crisis with devastating and ongoing impacts. High inflation has created yet another set of challenges. Though Everen’s operations were not significantly affected by the war through 2022, like most businesses, we had to deal with rapidly increasing interest rates which drove high volatility in the financial markets. Despite these challenges, Everen remained in excellent condition operationally and financially.

As we were implementing our new 5-year Strategic Plan in 2022, the positive impact this plan brings became clear. Under the plan, we revised our definition of energy operations and introduced eight new business sectors into the pricing model. We also increased the limit to $450 million – the most substantial single block of capacity offered to most energy insureds. These changes have enhanced Everen’s value proposition across the spectrum of energy industries and have been well received; many members are moving into new energy technologies and need an insurance solution that matches their needs. As the only true large scale mutual dedicated entirely to a broad spectrum of energy companies, Everen is able to reliably support both traditional and new technologies through the ongoing energy transition.

Everen is able to reliably support both traditional and new energy technologies through the energy transition.

The most noticeable action in 2022 was the rebranding of Oil Insurance Limited (OIL) as Everen Limited. The OIL brand served us well over the past 50 years and we are proud of its legacy. However, it was time to make a change to reflect the continued evolution of the energy industry and our members. Today we trade as Everen and are pleased that the new brand has been so well received by our members and business partners.

Operationally, 2022 was successful in spite of the volatility in our investment portfolio. While we ended with a net loss for the year, it should be noted that our capital position and liquidity are still very healthy; we expect the investment portfolio will recover in 2023 as global interest rates stabilize. In spite of these challenges, and as a result of Everen’s robust capital management plan, we were able to once again provide our members with a distribution in the form of a $350 million dividend.

As we see ongoing contraction in the insurance market availability for energy risks, Everen continues to provide stable, large capacity to its members across an increasingly broad range of energy. We remain as dedicated to the industry today as when the company was first formed 50 years ago.

I end this note by thanking our management and staff for their ongoing hard work, to the Board of Directors for their leadership and guidance, and to our members for their loyalty and support of the organization.

  • Bertil C. Olsson 
    President & Chief Executive Officer
    Everen Limited

Operational review
George Hutchings

Everen is a combination of “Forever” and “Energy”, which explicitly shows our commitment to supporting the insurance needs of the world’s best energy companies.

The Strategic Plan influenced most of the operational decisions made in 2022. The goals of this plan are to position Everen for the present and the future by broadening our energy remit and improving our value proposition. To reach those objectives, Everen worked with industry experts, risk engineers, and our members to formulate eight new business sectors to supplement the current eight business sectors, most of which the company has operated with for the past 27 years. While the new industry asset types – Offshore and Onshore Wind, Offshore and Onshore Carbon Capture & Storage, Electrical Storage, Hydrogen, Biofuels & Biochemicals, and Solar – have always been covered under our policy, we chose to include them as specific sectors to recognize the changing needs of our membership as they invest in the energy transition and to specifically price them based on their unique risk profiles. With their inclusion, we can more accurately represent the full risk spectrum of our members’ energy operations.

Our rebranding of OIL to Everen occupied a large part of our work effort in 2022. The technical renaming process was concluded in the summer of 2022, allowing us to introduce the world to our new name shortly thereafter. Everen is a combination of “Forever” and “Energy,” which explicitly shows our commitment to supporting the insurance needs of the world’s best energy companies. As part of the 5-year Strategic Plan, a new marketing plan was developed to increase the engagement level with our strong membership base and to reach more prospective members. Our newly appointed Business Development Officer will be responsible for executing that marketing plan.

Everen is a combination of “Forever” and “Energy”, which explicitly shows our commitment to supporting the insurance needs of the world’s best energy companies.

On the membership front, 2022 was the sixth year in a row in which no members elected to leave Everen. After two new members joined, CEZ a.s. and Colonial Pipeline, and two unrelated separate mergers, the total membership count remained constant at 64. Despite this level count, our insured asset base grew as a result of continued investments made by the membership and the addition of the two new members.

On the underwriting side, Everen wrote and earned $463 million of premiums and experienced incurred losses of $693 million; the result was a net underwriting loss of $229 million. This demonstrates how resilient Everen’s mutual model can be. Despite $690 million of losses originating from two large events incurred during the year, the company still managed to maintain the absolute level of losses at our 2022 expected loss projections. Everen also saw the majority of members elect the higher limit of $450 million that the company began offering on January 1, 2022.

In summary, 2022 was an extraordinary year for Everen. The groundwork laid by the Strategic Plan and the roll-out of the new brand have put the company in an advantageous position for the next several years.

I would like to extend my gratitude to everyone who played a role in Everen’s accomplishments over the past year. Thank you to our staff members, our management team, our Board of Directors and our membership – your loyalty, hard work and dedication have made all the difference, once again. 

  • George F. Hutchings 
    Senior Vice President & Chief Operating Officer
    Everen Limited

Financial and investment review
Marlene Cechini and Ricky Lines

Everen finished the year in a very strong liquidity position and remains well positioned as we move into 2023.

Everen continues to focus on maintaining a strong financial footing so we can service the needs of our members. As at December 31, 2022, Everen reported shareholders’ equity of $3.1 billion while Everen’s Statutory Capital and Surplus totaled $4.1 billion. During 2022, gross premiums written and earned totaled $463 million with an underwriting loss for the year of ($229) million. Losses and loss expenses incurred were ($693) million, which represented losses incurred during the calendar year of $1.1 billion and a reduction in prior year losses of $406 million. The 2022 losses and loss expenses incurred included case incurred losses of ($486) million and changes in IBNR of ($211) million offset by favorable development in loss expenses incurred totaling $4 million.

The global financial market volatility had a negative impact on our investment portfolio during 2022, resulting in a net investment loss of ($525) million. Everen’s investments are classified as trading and carried at fair value. Both realized and unrealized gains and losses on our investments are included within our net investment loss, and we finished the year carrying unrealized losses of $651 million, much of it pertaining to the effect of global interest rate hikes on our global bond portfolio. For the year ended December 31, 2022, Everen recorded a net loss of ($777) million.

Everen finished the year in a very strong liquidity position and remains well positioned as we move into 2023.

Volatility within global financial markets was prevalent throughout 2022, with inflation, the war in Ukraine and global central banks’ aggressive interest rate hikes contributing to a negative impact on both stock and bond returns. For the first time in history, both bonds and stocks ended a calendar year down in double digits. As a result, the typical diversification benefit that bonds normally provide when stocks fall was absent. For the year, the Bloomberg Global Aggregate Index returned negative 16.25% while the S&P 500 Index was down 19.4%.

In comparison, Everen’s return on its total invested assets was negative 8.5%, driven primarily by a negative return of 15% on its global equity portfolio and a negative 7.5% return on its global bond portfolio. The company maintains a high-quality global bond portfolio – 94% of its securities are investment grade rated and the remaining 6% are non-investment grade. Our hedge fund portfolio was a positive contributor to performance, generating a return of 2.8%.

Given the market volatility, liquidity management was a priority for the Everen management team. The investment portfolio funded the $350 million common dividend paid in September while the $439 million in insured loss payments were funded primarily by premium receipts from 2022. As mentioned within the CEO’s report, Everen finished the year in a very strong liquidity position and remains well positioned as we move into 2023. The company’s solid footing was underscored by Standard & Poor’s affirming Everen’s “A” / Stable financial strength rating in 2022.

In closing, we would like to thank Everen’s Board of Directors and the organization’s Investment Board for their continued support over the past year. In addition, the diligence and hard work of the talented finance and investments team have been integral to Everen’s ongoing success – their dedication and efforts are very much appreciated.

  • Marlene Cechini 
    Senior Vice President & Chief Financial Officer
    Everen Limited

  • Ricky Lines 
    Senior Vice President & Chief Investment Officer
    Everen Limited

Annual Report for 2022

In an effort to be mindful of the environment, printed versions of the Everen Annual Report will no longer be available. You can, however, download the more sustainable, digital option below.