Alesco Risk Management Services, the specialist insurance and risk management broker, has been appointed by Africa Reinsurance Corporation (Africa Re) to arrange a reinsurance facility for all international upstream energy insurance programs written from Equatorial Guinea.
The commission of the $3.5 billion facility, which will largely be placed through Lloyd’s, adheres to local insurance regulations that require all companies in the petroleum and gas sector to be insured by GEPetrol Seguros (GEPS), a CIMA licensed local insurance company.
By developing the facility, Alesco hopes to support the government of the Republic of Equatorial Guinea in building a local insurance industry and strengthening the national economy.
“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,” said Nadim Semaan, Partner at Alesco.
“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,” he continued.
Ken Aghoghovbia, Deputy Managing Director and Chief Operating Officer at Africa Re, also stated: “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,” he added.
Finally, H.E. Gabriel M. Obiang Lima, Minister of Mines and Hydrocarbons for Equatorial Guinea, commented following a visit to Lloyd’s last month.
“The insurance industry in Equatorial Guinea has taken a significant step forward by our visiting Lloyd’s of London and meeting with senior representatives,” he said.
“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.”