2011-01-06

By Editor, CIR

Willis has announced the creation of a new facility designed to provide additional underwriting capacity for the oil and gas industry.

The facility is designed to underwrite a 10% follow line, subject to an overall limit of US$250 million any one insured, and will be utilised subject to each client’s individual agreement.

Security is provided by 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, CEO of Willis Global Energy, Alistair Rivers, 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.”

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