financiers insurance due diligence 2008
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Financiers’ insurance due diligence
Distinctive. Choice.
CONSTRUCTION
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Distinctive. Choice.
JLT is an international group of Risk Specialists and
Employee Benefits Consultants and one of the largest
of its type in the world. We offer a distinctive choice
to our clients and partners through our combination
of independence, scale and specialism.
As an independent business, we are able to operate
with autonomy and flexibility. We have the scale to
provide solutions to the complex demands of the world’s
leading companies and to deliver global servicing whilst
recognising that the needs of each of our clients is unique.
By developing highly specialised services, we provide our
clients with a depth of expertise and experience.
The value we create is driven through the personal
determination of our 6,200 highly motivated and
skilled people.
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JLT has a dedicated unit specifically designed
to cater for the needs of lenders and ECAs in
connection with the limited and non-recourse
financing of projects. Our Financiers’ Insurance
Due Diligence team has been providing advice
since 1995, enabling our consultants to gain
immense experience with many diverse
projects. Our consultants are multi-disciplined
across power, energy, natural resources,
infrastructure and PPP/PFI projects around
the world.
Our key objectives in providing insurance due diligence
advice are:
• to provide specialist and experienced personnel to review,
assess and monitor the risk transfer process
• to help ensure the insurance requirements of the loan
agreement, throughout the construction and operational
phases, are suitable and robust
• to check that the insurance requirements, including the
credit rating of the insurers, are met, or any shortfalls
notified to the financiers and dealt with appropriately
• to minimise the commercial risk to the financiers, by
checking that the key project exposures are optimally
insured and financiers’ insurable interests are protected to
the maximum available extent required
• to reduce the workload of the financiers and their legal
advisers, in the insurance and risk management field.
The direction of due diligence
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JLT has developed a successful formula for
servicing the needs of financiers of limited and
non-recourse projects. We have the necessary
experience to respond to the insurance
demands of a project finance transaction,
pre- and post-financial close and any
re-financing, including:
• risk and insurance analysis – we identify the insurable and
uninsurable risks faced by the project participants
• contract analysis – our review of the project and financing
documentation and identification of risk ensures the
insurance arrangements address such risks and are
consistent and achievable
• the approach to insurance of the concessionaire and the
award body – we can assist with the negotiation of
insurance cost sharing and future uninsurability provisions
• advising on the extent of risk transfer available within the
traditional and non-traditional insurance markets
Experience
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• working with legal, technical and other advisers with regard
to the insurance requirements of the loan agreement
• meeting tight deadlines – we deliver quality reports
incorporating confirmation that the insurance conditions
precedent have been met
• the syndication process – we can assist as required with
information memoranda and speak at syndication
presentations.
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It is vital for financiers
to be secure in the
knowledge that the
borrower’s insurance
programme optimises
cover for project risks
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The Financiers’ Insurance
Due Diligence team
comprises consultants
who have worked on more
than 400 separate project
financed transactions
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Projects located in Argentina, Austria, Bahrain,
Belgium, Bolivia, Brazil, Bulgaria, Chile, China,
Colombia, Cyprus, Czech Republic,
Dominican Republic, Estonia, Egypt, France,
Germany, Greece, Hungary, Iceland, India,
Indonesia, Italy, Ireland, Jordan, Laos,
Malaysia, Mauritania, Mexico, Netherlands,
Nigeria, Norway, Oman, Pakistan, Peru,
Philippines, Poland, Portugal, Qatar, Saudi
Arabia, Spain, South Africa, South Korea,
Sweden, Russia, Taiwan, Thailand, Trinidad &
Tobago, Tunisia, Turkey, UAE, Uganda,
Vietnam and the United Kingdom.
• over 125 UK PFI healthcare, transportation, schools,
prisons/police/judiciary housing, accommodation and
leisure projects
• over 55 power projects (several involving portfolios of up to
21 separate IPPs)
• over 20 road projects
• over 42 wind power projects (including seven offshore)
• over a dozen oil and gas, LNG, petrochemical and
pipeline projects
• over 10 airport projects
• eight wastewater projects
• nine space/satellite projects
• various other light rail and railway projects, submerged
tube tunnels, steel plants, cement plants, aluminium
smelters, pulp mills and mining projects.
Whilst all due diligence is undertaken in English, within
the team we have speakers of French, Italian, Spanish,
Bengali and Hindi.
Project profile of due diligence
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• ABN AMRO
• Ambac
• Barclays Bank PLC
• Banco BPI
• Banco Espirito Santo
• Bank of Ireland
• Bank of Scotland (HBOS)
• BNP Paribas
• BayernLB
• Calyon
• Citibank
• Corporación Andina de Fomento
• Den norske Bank
• Depfa
• Deutsche Bank
• Dexia Public Finance Bank
• EIB
• Fortis
• FSA
• Helaba
• HSBC
• HVB/Unicredit
• ING
• JBIC
• KBC
• KfW
• Lloyds TSB Bank
• Macquarie Bank
• MBIA Assurance SA
• Millennium BCP
• Mizuho
• NIB Capital Bank
• Prudential M&G
• Royal Bank of Scotland
• Samba
• SG
• SMIF
• Standard Chartered
• West LB
• XL
Our clients include
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SOLID PMS289 BLUE OR DIVISION COLOUR AS PER COLOUR STRIP ON OUTSIDE COVER
Distinctive. Choice.
JLT is an international group of Risk Specialists and
Employee Benefits Consultants and one of the largest
of its type in the world. We offer a distinctive choice
to our clients and partners through our combination
of independence, scale and specialism.
As an independent business, we are able to operate
with autonomy and flexibility. We have the scale to
provide solutions to the complex demands of the world’s
leading companies and to deliver global servicing whilst
recognising that the needs of each of our clients is unique.
By developing highly specialised services, we provide our
clients with a depth of expertise and experience.
The value we create is driven through the personal
determination of our 6,200 highly motivated and
skilled people.
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JLT Specialty Limited
6 Crutched FriarsLondon EC3N 2PHTel +44 (0)20 7528 4000Fax +44 (0)20 7528 4500www.jltgroup.com
Lloyd's Broker. Authorised and Regulated by the Financial Services Authority. A member of the Jardine Lloyd Thompson Group. Registered Office: 6 Crutched Friars, London EC3N 2PH. Registered in England No. 01536540.VAT No. 244 2321 96
© January 2011 263001
CONTACTS
Martin Benatar (Team Leader)Tel: +44 20 7558 3988Mobile: +44 7920 586 [email protected]
Warren Beardall Tel: +44 20 7528 [email protected]
Cris BlakeyTel: +44 20 7558 [email protected]
Chris CookTel: +44 20 7528 [email protected]
Vivienne Dell’Aira BromleyTel: +44 20 7558 3768vivienne_dell’[email protected]
Martin DockrillTel: +44 20 7528 [email protected]
Sabbir KhandokarTel: +44 20 7558 [email protected]
Peter SymesTel: +44 20 7528 [email protected]
Team Fax: +44 20 7528 4784
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