Thursday, December 18, 2008

Insurance - Brazil - Insurance for oil risk up 74.7% January-October

The insurance segment related to risks in the oil industry in Brazil jumped 74.7% in the first 10 months of 2008 over the same period in 2007, reaching 194mn reais (US$81.9mn) in premiums, data from insurance regulator Susep show.


One recent example of the segment's growth was the US$1bn large risk policy for platform construction and installation in the BC-10 field in the Campos basin, which is operated by Anglo-Dutch oil company Shell (NYSE: RDS-B) with a 50% stake and in which federal energy company Petrobras (NYSE: PBR) holds 35% and Indian group ONGC has the other 15%.

US-based insurance broker Marsh and Brazilian insurer Itaú XL, the joint venture between bank Itaú (NYSE: ITU) and Bermuda's XL Capital (NYSE: XL), came away with the multi-million dollar contract to insure the platform's construction and installation, local daily Valor Econômico reported. The exact price of the contract was not confirmed.

Additionally, former Brazilian monopolist IRB-Brasil Re and 16 international reinsurers, including some from India, Pakistan and Saudi Arabia, will provide reinsurance on the deal, which leaves 16% of the risk with Brazilian firms, the report said.

Overall, insurance premiums in Brazil rose 17.4% to 55.4bn reais in the first 10 months of 2008 compared to the same months in 2007, according to Susep.



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