Mike McGavick, XL Group’s Chief Executive Officer, commented, “Helping move new ventures forward is exactly what insurers need to do in today’s market. Our clients need strong innovative partners to help manage their risk and I am delighted that we worked together with Munich Re and New Energy Risk to deliver this unique product.”
“This shows clearly the importance of insurance in making the project significantly more attractive to investors. In analysing and assessing the risks and giving a long term insurance cover we signal a certain level of security for all stakeholders,” explained Thomas Blunck, the Munich Re Board member with oversight for this segment.
XL Group launched this innovative performance insurance cover in 2013 along with specialized consultants New Energy Risk. The fuel cell technology covered in this deal will enable a grid-independent energy supply for several companies.
It is the first time that an insurance coverage, provided by XL Group and Munich Re, has contributed to a financing bond receiving investment grade rating, thereby becoming more attractive to a wider range of investors.
“Each of these companies brought valuable expertise that, combined, led to a unique insurance solution for a new technology. This collaborative approach could pave the way for further business in this and other energy-related fields,” said Tom Hutton, CEO of New Energy Risk.
XL Group’s Complex Accounts team serves both national and international companies across different industries that are looking for cover from economic and operational risks which could have an unexpected negative impact that they’re not able or willing to bear alone. These may include risks to specific innovation-related projects, a business’ value chain, or its annual revenue or profitability. Starting where other insurers traditionally set their limits, the team creates unconventional coverage for truly unique business risks. At present their geographic focus is primarily in Europe; in the United States they work exclusively in partnership with New Energy Risk and policies are provided by XL Group’s Indian Harbor Insurance Company.
Munich Re's Green Tech Solutions team has a long and successful track record in providing unique and tailor-made solutions to enable business in the area of renewable energy and energy efficiency. With a global team, industry recognized expertise, and substantial capacity to cover large investment projects, Green Tech Solutions is a proven partner for complex risk scenarios in new technology investments.
About XL Group plc’s Insurance Operations
XL Group plc’s insurance companies offer property, casualty, professional and specialty insurance products globally. Businesses that are moving the world forward choose XL as their partner. To learn more, visit xlgroup.com/insurance
About XL Group plc
XL Group plc (NYSE: XL), through its subsidiaries, is a global insurance and reinsurance company providing property, casualty and specialty products to industrial, commercial and professional firms, insurance companies and other enterprises throughout the world. XL is the company clients look to for answers to their most complex risks and to help move their world forward. To learn more, visit xlgroup.com
XL Group is the global brand used by XL Group plc’s insurance and reinsurance subsidiaries.
About Munich Re
Munich Re stands for exceptional solution-based expertise, consistent risk management, financial stability and client proximity. In the financial year 2013, the Munich Re Group achieved a profit of €3.3bn on premium income of €51.5bn. It operates in all lines of insurance, with almost 45,000 employees throughout the world. For further information, visit munichre.com
About New Energy Risk
New Energy Risk provides innovative data analytics, strategic consulting, and financial risk transfer solutions to the renewable energy industry, worldwide. New Energy Risk is a privately held firm based in Menlo Park, CA and Fairfield, CT. In the United States, XL Group’s Complex Accounts insurance team works exclusively with New Energy Risk. For more information, visit newenergyrisk.com
About Arthur J. Gallagher Risk Management Services
Arthur J. Gallagher Risk Management Services, Inc., a division of Arthur J. Gallagher & Co. (NYSE:AJG), is a global risk management and insurance services provider headquartered in Itasca, Illinois. It has operations in the U.S., Canada and Bermuda, and offers client-service capabilities in more than 140 countries through its own expert advisors and a network of correspondent brokers and consultants. Arthur J. Gallagher Risk Management Services’ advisors specialize by industry and coverage types—developing solutions uniquely tailored to individual client requirements. http://www.ajg.com