Alesco and Africa Re seek $3.5bn Lloyd’s capacity for Equatorial Guinea upstream energy risk
Broker Alesco Risk Management Services and Africa Re have launched a $3.5 billion reinsurance facility designed to cover all international upstream energy insurance programmes written from Equatorial Guinea.
The move is partly in response to recent changes in the insurance regulations in Equatorial Guinea and a recent visit by Gabriel Obiang Lima, the minister of mines and hydrocarbons of Equatorial Guinea, to Lloyd’s of London, where Alesco hopes to place much of the risk.
The placement will complement laws in the country that mean all companies in the petroleum and gas sector in the Republic of Equatorial Guinea must be insured by GEPetrol Seguros, a local insurance company. But the facility is designed to support the government in developing a local insurance industry and strengthen the national economy.
Obiang Lima said: “The insurance industry in Equatorial Guinea has taken a significant step forward by our visiting Lloyd’s of London and meeting with senior representatives. We need to create a local financial services sector in general, and an insurance sector in particular, in Equatorial Guinea. Insurance is a vital peripheral service industry that will help our oil and gas-based economy to thrive and one that our country will benefit from when enforcing the new Local Content Law. We are committed to working with Lloyd’s, Africa Re and Alesco to make this happen.”
Ken Aghoghovbia, deputy managing director and chief operating officer, Africa Re, said: “Africa Re has followed with keen interest the rapid development taking place in Equatorial Guinea. We are particularly pleased with the bold steps the government has taken to introduce the Local Content Law in a transparent manner, with a view to creating more jobs and driving economic growth. In line with its mission of supporting African economic development, Africa Re identifies with the government initiatives and commits to support the efforts in establishing an efficient and transparent insurance market in Equatorial Guinea.”
Nadim Semaan, partner at Alesco, said: “Alesco is fully committed to supporting the government of Equatorial Guinea in growing their local insurance industry, working hand in hand with Africa Re to host conferences and workshops to share relevant skills and expertise. We are extremely excited about this opportunity and we look forward to working closely with the various international oil companies operating in the region, as well as the various reinsurers supporting us.”
