Global insurance broker Willis Group Holdings today announced the creation of a new facility designed to provide additional underwriting capacity for the oil and gas industry.
The facility has been created in response to requests from the industry for access to further sources of capital to meet their insurance requirements and has been implemented with effect from 31st December. This facility is designed to underwrite a 10% follow line, subject to an overall limit of US$250 million any one insured, and will be utilized subject to each client’s individual agreement.
Security is provided by Berkshire Hathaway International Insurance Limited (“Berkshire Hathaway”), currently rated at AA+ by Standard & Poor’s. 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 set-up costs and administrative charges will be borne by Berkshire Hathaway and not by Willis clients.
Commenting on the introduction of the new facility 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.”
Willis Group Holdings plc is a leading global insurance broker. Through its subsidiaries, Willis develops and delivers professional insurance, reinsurance, risk management, financial and human resource consulting and actuarial services to corporations, public entities and institutions around the world. Willis has more than 400 offices in nearly 120 countries, with a global team of approximately 17,000 employees serving clients in virtually every part of the world. Additional information on Willis may be found at www.willis.com.