A leading reinsurance specialist has launched a renewable energy consortium at Lloyd’s focusing on project specific reinsurance for constructing and operating offshore windfarms in China.
China Re’s Syndicate 2088 will manage and co-lead the consortium along with Canopius Syndicate 4444 and Travelers Syndicate 5000. It is also supported by Chaucer Syndicate 1084, a member of the China Re Group, Axis Syndicate 1686 and GCube Underwriting Limited.
The consortium will cover construction all risks, erection all risks and third-party liability and can provide capacity of up to US$225M per risk.
In a statement, China Re said the offshore sector in China has benefited in recent years from a commitment by President Xi Jinping to provide US$360Bn to renewable power development by 2020. This is intended to improve health and reduce CO2 emissions which, according to the International Renewable Energy Agency, will provide savings of more than US$55Bn a year to the Chinese economy.
China Re Underwriting Agency 2088 chief executive Janet Helson said the consortium “is the first of its kind, enabling international involvement in the Chinese renewable energy market and a great example of the collaboration that exists between the London and Chinese markets.”
China Re Underwriting Agency 2088 renewable energy underwriter Oliver Litterick said, “China is investing heavily in renewable energy so there is a compelling opportunity for Lloyd’s to be involved. This consortium will be able to access China Re’s domestic client base of offshore wind specialists to bring this new and diverse premium to the London market.”
China Re ranks first in Asia and eighth globally by reinsurance premium income, with premium topping US$16Bn. It is a state-owned financial enterprise controlled by Central Huijin and Ministry of Finance of China and is listed on the Hong Kong Stock Exchange.