Willis Group Holdings announced the creation of a new facility designed to provide additional underwriting capacity for the oil and gas industry.
Willis said it had created the facility “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.” It is designed to underwrite a “10 percent 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, 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.
Alistair Rivers, CEO of Willis Global Energy, commented: “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.”
Source: Willis Group Holdings