Liberty Specialty Markets enters project finance market
Liberty Specialty Markets (LSM), a part of Liberty Mutual Insurance, has launched a new project finance insurance offering as part of its global financial risks (GFR) product range.
Liberty’s GFR team has expanded its coverage to include credit insurance for large-scale energy and infrastructure projects. Led by Sam Wilde, senior underwriter, the team has now bound its first project finance transaction, a UK-based renewables project.
LSM is offering up to $50 million cover per transaction for up to 15 years duration. The team has developed a analytics-driven underwriting strategy, benefiting from access to over 30 years of project finance performance data.
"This is an exciting development for us," said Peter Sprent, Liberty’s head of global financial risks. "Large-scale project finance is a non-correlating, diversifying risk that enhances the GFR book of business. With huge growth in major renewables projects, even in the traditional oil-rich territories like the Middle East, we see considerable potential for this type of product. Feedback from our brokers has also demonstrated a clear appetite within the market for this LSM product.
"These are long-term projects with very lengthy lead times and the need for a holistic approach to underwriting. By combining data-driven analytics with our team’s in-depth experience, we believe we can provide considerable value to our core clients while supporting projects that make a positive impact on both mature and emerging economies."
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