Case Study: Energy – EMEA - Fronting

Background

The client’s main business is the exploration and extraction of natural gas and oil and the production of liquefied natural gas. It also owns some gas pipelines and is involved in some power generation projects. The client is a multinational company with operations in 27 countries, including a large plant in Italy.

Approach

The client has a global “All Risks of Property Damage, Operators Extra Expense, Business Interruption and Legal Liability” programme of which the lower layers are insured in the Group’s Singapore-based captive. An admitted front in Italy was necessary to access the Group’s captive.

Aon who is heavily involved in the consulting and the management of the captive, suggested using White Rock to front the Italian risk on a Freedom of Services basis and in a fully compliant manner, including for the collection and payment and IPT.

Results

Whilst meeting Italian legal requirements, the client’s dedicated fronting cell in White Rock allowed it to use a fronting tool independent from the market and to secure long term access to the Group captive helping to manage their total cost of risk.