Energy Insurance Newsletter - October 2006 - JLT

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10not change until the Coast Guard has hadthe opportunity to promulgate implementationregulations for which there is no specifictimetable set.Commonwealth Insurance have announcedthe closure of their Energy & International MarineDivision and their exiting of a significant portionof their Non-Marine Energy related business.They stated however that they will continueto be a market for Ocean Marine business,Mining and Utility business, and certain elementsof traditional Oil and Gas business such asLand Rigs; Gas Plants, Pipelines and “Junior”Refining and Petrochemical Plants, withour understanding that the Non-Marine classthey are exiting consists of large Refining andPetrochemical risks.Lancashire Holdings Ltd, Bermuda hasannounced it intends to form a UK licencedinsurer, Lancashire Insurance Company (UK) Ltd,to be initially capitalised at £20m, rising to £60mby 1 January 2007. It has been granted permissionby the Financial Services Authority to start trading.The UK company will enter into a quota shareagreement with its Bermuda parent. Lancashirestated they do not intend to change the classesof business written or the company’s risk profile.Lancashire has also invested USD 20m in a newBermuda sidecar company called Sirocco Re.Sirocco will take a quota share of Gulf of Mexicooffshore energy risks written by Lancashire withLancashire earning a ceding commission andprofit commission. Sirocco is not currently writingrisks directly.SCOR has announced the transfer of itsnon-life reinsurance activities to a wholly ownedsubsidiary, SCOR Global P&C SA. The ratingon SCOR Global P&C is underpinned by aparental guarantee, and is consequently drivenby the ratings on SCOR.Endurance Specialty Insurance has announcedthe securitisation of USD 235m of multi-year,US natural catastrophe cover throughreinsurance from Shackleton Re, a specialpurpose vehicle formed in the Cayman Islands.The Shackleton Re cover is divided intothree parts, offering USD 125m of Californianearthquake cover, USD 60m of hurricane coverand a final layer of protection for two losses inone year.Hiscox has advised that that it is to re-domicilein Bermuda through a new holding company,because of European Union regulations, UKtax and FSA (Financial Services Authority) issuesrelated to being domiciled in London. The groupwill continue to be regulated by the UK FSA in itsunderwriting activities but stated it would be ableto take better advantage of Bermudian authoritiesquicker approval for corporate developments.They added that they have no intention to exitLloyd’s, which they said is indispensable to them.Although not a significant player in the Energymarket, Omega Underwriting holdings plchave also announced that they are redomicilingto Bermuda.The issue of the UK’s tax regime, the main reasonfor these two moves, is likely to feature further inthe market over coming months (see Lord Levenecomments under “Recent Quotes”).
11People in the NewsJulian Harris is leaving Aspen’s Energy Liability teamto assist Rob Jones at Ace.Elspeth Brewin has left OIL and is joiningThomas Miller, Bermuda.Heath Callan has resigned from Aegis Syndicateto join the Argenta Syndicate 2121 where he willdevelop and underwrite an Energy book of business.Clive Washbourn (head of marine at Beazley) isto succeed Rupert Atkin (director of underwriting atTalbot), as the new chairman of the London Joint WarCommittee (JWC).Peter Godfrey has resigned from GE Frankonafollowing their merger with Swiss Re and is joiningAllianz London to head-up their Energy Team.Nick Bonnar, Head of Specialty, and Ian Beaton,Head of Insurance, have resigned from Aspen andare understood to be joining a new start-up company.Judy Crick has been appointed to the new rolein the Lloyd’s Franchise Department of Marineand Energy Class of Business Executive. Judywas previously the Limit syndicate’s underwriter forPorts and Terminal Operators and underwriter for theThrough Transportation Club.Kevin Massey currently an underwriter in theWellington liability team is reported to have resignedto join the new CV Starr syndicate.Kelan Hunt has resigned from AIG London and isjoining Arch.Chris Wildee is leaving Wellington to join Chaucerin Singapore.Swiss reinsurer Glacier Re announced on 22September that it has appointed María Arana Anteloas energy underwriter. Antelo joins the company fromInfrassure Switzerland, where she was an underwriterand claims manager specialising in power generation.Energy Sector in the mid to late 1950s and was also amember of the London Market Rig Committee. He joinedJardine Glanvill & Co in 1986 and continues to contributevaluable expertise to JLT’s Energy capabilities today.Offshore Energy Center Hall of FameDavid Hill (pictured, second from right) of JLT’s EnergyDivision, is one of only eight members of the Lloyd’smarket honoured by becoming the first insuranceprofessionals to be inducted into the Offshore EnergyCenter Hall of Fame in recognition of their contributionsin the field of insurance to the oil and gas industry.David’s career includes twenty two years underwriting.He was involved shortly after the Lloyd’s market firstbegan producing insurance solutions for the OffshoreThe Offshore Energy Center, an industry sponsoredorganisation, was born in 1989 and maintains theOcean Star offshore rig and museum in Galveston,Texas. Lloyd Thompson Limited was one of thefounding members of the Center, together with manyleading companies in the Oil and Gas industry.David, along with Gale Coles, travelled to Texas earlierthis month to be inducted and we take this opportunityto congratulate them on this achievement.Sadly, of the other Lloyd’s market individuals to behonoured, Henry Chester, Harold Hill (David’s father),Peter Wright and George Stewart are no longer alive,whilst John Oliver and Mike Adams were unable toattend the ceremony.
Page 1: Energy Insurance NewsletterOctober
Page 4 and 5: 4Energy Market OverviewOur last new
Page 6 and 7: 6PowerThe rating environment for op
Page 8 and 9: 8News in BriefACE USA has announced
Page 12 and 13: 12Losses2006 Energy losses of USD 1
Page 14 and 15: 14Lloyd’s2007 CAPACITYEarly indic
Page 16 and 17: 16Political Developmentsin the Ener
Page 18 and 19: 18FOCUS ON:Capital Markets - theCha
Page 20 and 21: 20FOCUS ON:The Impact of Losseson t
Page 22: 22About JLT Risk SolutionsJLT Risk

Energy Insurance Newsletter - October 2006 - JLT

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