Alesco Risk Management Services has been selected by Africa Re to provide a reinsurance facility for all global upstream energy insurance programmes written from Equatorial Guinea.
The reinsurance facility will comply with the local insurance regulations which mandate all companies in the petroleum and gas sector to be insured by GEPetrol Seguros (GEPS).
The $3.5bn facility, which will largely be placed through London-based specialist reinsurance marketplace Lloyd’s, will enable Alesco to support the Equatorial Guinea government effort to set up a local insurance industry.
Alesco partner Nadim Semaan 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.”
Semaan further stated that the company is ready to work with the various global oil firms operating in the region along with the numerous reinsurers supporting the company.
Africa Re deputy managing director and COO Ken Aghoghovbia 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.”
Aghoghovbia added that Africa Re recognises the government initiatives and supports the efforts in establishing an efficient and transparent insurance market in Equatorial Guinea.
Alesco, which operates as a subsidiary of Arthur J. Gallagher (UK), offers a range of insurance and risk management services to its clients.