Corporate round-up

Willis launches $250m oil and gas facility with Berkshire backing Broker Willis has announced the creation of a new $250m insurance facility for the oil and gas industry. Willis said that the facility had been created ‘in response to requests from the industry for access to further sources of capital to meet their insurance requirements.’ The new facility was effective from December 31 last year. The broker said that the facility is designed to underwrite a 10% follow line, subject to an overall limit of $250m for any one insured, and would be used ‘subject to each client’s individual agreement.’ Security is provided by Berkshire Hathaway International Insurance Limited, currently rated at AA+ by Standard & Poor’s. hideWillis said that the facility is designed so that: “Where called upon by the insured, Berkshire Hathaway will follow, or improve upon, the terms and conditions set by the leading insurers, as well as ‘follow’ claims payments agreed by the leading insurer.” The broker added that the set-up costs and administrative charges will be borne by Berkshire Hathaway and not by Willis clients. Alistair Rivers, Chief Executive Officer, Willis Global Energy, said: “This additional capacity is excellent news. It provides substantial and easy access to AA+ rated paper to the market at a time when the need for additional capacity on a range of operating and construction risks has never been greater.” Ironshore sets up European operation in Dublin Hamilton, Bermuda-based Ironshore Inc. has added to the high level of quality capacity on offer for European corporate insurance buyers currently with the announcement of the formation of Ironshore Europe Limited, domiciled in Dublin, Ireland. Ms Fiona Marry has been appointed Chief Executive Officer of the new insurer and reports to the Ironshore Europe Limited Board chaired by Mark Wheeler, who also serves as Chief Executive Officer of Ironshore International. The company said that Ironshore Europe Limited is an expansion of the Ironshore international platform and has been created ‘in response to heightened global demand for insurance coverages of complex risk.’ It said that Ironshore Europe will ‘augment’ Ironshore’s existing presence in the US, UK, Canada and Bermuda and will underwrite a diverse range of specialty lines of businesses offered within the Ironshore group of insurance companies. Ironshore was granted a Certificate of Authorisation from the Central Bank of Ireland in December and operations are now up and running. “Ironshore Europe builds upon the company’s growing franchise to serve international clients and provides the capital flexibility for Ironshore to engage in strategic opportunities,” said Mr Wheeler. Ms Marry has twenty years of experience within the international insurance industry and was most recently European Casualty Manager for Allied World Assurance Company Dublin Limited. Ms Marry also served as Vice President of Underwriting for XL European Insurance having joined the company in 1991. “Ironshore Europe offers a European access point for global brokers and carriers that are either existing or new clients,” stated Ms Marry. “The result is the creation of new distribution channels to broaden the Ironshore brand to European markets,” she added. Mr Wheeler added that the creation of the entity provides a subscription market for US-domiciled corporations that seek risk syndication in European markets and in particular the ‘pent-up’ demand within the US casualty sector. The Ironshore group of companies is rated A- (Excellent) by A.M. Best. Ironshore’s Pembroke Syndicate 4000 operates within Lloyd’s where the market rating is A (Excellent) by A.M. Best and A+ (Strong) from both Standard & Poor’s and Fitch. DUAL authorised for Switzerland and South Africa DUAL Corporate Risks, the specialist underwriting agency owned by UK-based Hyperion Insurance Group, has received authorisation from Lloyd's to underwrite business domiciled in South Africa and Switzerland on a direct basis via a regulated and approved Swiss broker. The agency said that this move allows it to underwrite its financial products, including PI, D&O, Bankers Blanket Bonds and Commercial Crime in these two territories as of January 1 this year. Jennifer Martin, Dual's Underwriting Director - Financial Lines, said: "This is an exciting new development for DUAL as it enables us to further expand our geographical capabilities by purely using Lloyd's capacity. South Africa and Switzerland provide excellent opportunities for us, and members of the financial lines underwriting team already have proven experience writing business in these areas." DUAL Corporate Risks is the UK operation of DUAL International, the company set up in 1998 as the specialist underwriting arm of the Hyperion Insurance Group. DUAL International generates annual gross premiums of $150m and employs over 120 people in the UK, Spain, Germany, Italy, Australia, Hong Kong, the Caribbean and the Americas. Hyperion was established in 1994 and headquartered in the City of London. The fast expanding, independently owned insurance and underwriting company employs over 550 people in 40 offices that operate out of 18 countries. Hyperion is backed by 3i, a world leader in private equity, that in April 2008 acquired a 27% shareholding in Hyperion. It is also backed by specialist private equity investor, BP Marsh & Partners plc, and Murofo Investments SL. Ruxley transfers Aviation & General business The UK High Court of Justice has sanctioned the transfer of insurance and reinsurance business from Aviation & General Insurance Company Limited, a subsidiary of Ruxley Ventures, to Tenecom Limited, a member of the Berkshire Hathaway group of companies. The business transferred mainly comprises risks underwritten by Aviation & General in the UK between 1991 and 1993 as a participant in the British Aviation Insurance Group Pool and risks underwritten by Pearl Assurance PLC during the same period, which were transferred to Aviation & General by means of an insurance business transfer scheme in May 2004. The transfer also includes risks underwritten by Aviation & General through its German branch. John Winter, Chief Executive of Ruxley Ventures, said: “The decision by the High Court marks the latest stage of our strategy for closing out all Aviation & General’s liabilities and follows close on the heels of the recent transfer of A&G’s Canadian branch liabilities. We have been conscious of the needs of policyholders throughout and are very pleased to have been able to work productively with Tenecom in creating a positive solution. Over the years Ruxley has acquired a wealth of experience of business transfers which has been developed while working alongside some of the world’s leading insurance businesses.” Munich Re buys 40 wind turbines Munich Re has concluded a significant investment deal that involves wind power plants in Germany via its asset manager MEAG. The group is to acquire 40 wind turbines in a total of 11 wind parks with an overall output of 73 megawatts. The Munich-based reinsurance group said that the investment for the reinsurance segment is ‘in the low three-digit million range’ and is part of the RENT programme (Renewable Energy and New Technologies), through which Munich Re plans to invest up to €2.5bn in renewable energies and new environmental technologies over the next few years. Nearly all of the wind parks in Thuringia, Brandenburg, Mecklenburg-West Pomerania, Saxony-Anhalt and Lower Saxony are already on the grid. The seller is wpd AG, Bremen, one of the leading project developers and operators in the European wind energy market. "This acquisition shows how Munich Re can profit from its expertise in the group. Our scientists determine the meteorological suitability of locations for wind power plants, while our engineers assess the technical aspects of the plants, their risks and performance. We will also use this know-how in the future to build up investments in renewable energies and to achieve attractive returns," said board member Thomas Blunck, responsible among other things for the reinsurance group's investments. Munich Re launched the RENT investment programme at the start of 2010. The group said that the investment volume to date has been ‘in the low three-digit million range’ for insurance and reinsurance and has been limited to photovoltaic panels in Germany and other European countries. Abacus become the first PCC structured insurance manager Abacus Risk Management Services PCC Ltd, an associate company of Malta-based GasanMamo Insurance Ltd, has become Europe’s first insurance manager that is structured as a Protected Cell Company (PCC). Established in January 2009, Abacus recently announced the Maltese regulator’s approval of its first cell¬–South Risk Management Cell. The company said that the cell, backed by Abacus, will target insurance undertakings that require insurance management and risk management consultancy. “Abacus is currently in a unique position and is the first Insurance Manager PCC in Europe to be able to approach the market on two levels,” said Julian Mamo, Director. “With a bi-focal business model, the company is an insurance manager in its own right catering for the needs of insurance undertakings that require management on an ongoing basis or assistance in the process of feasibility and establishment. It is also available to service entities that would like to participate in the insurance management process in an EU domicile, without the need to set up a fully-fledged Registered Insurance Manager,” he continued. “South Risk Partners are confident that by working within this structure all parties will be playing to their strengths with the ultimate beneficiary being the client,” said Joanne Alamango, director of South Risk Partners Ltd.

Corporate round-up

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