Swiss Re New Markets Targets Energy Sector.(Brief Article)

National Underwriter Property & Casualty-Risk & Benefits Management, October, 2000 by SCLAFANE, SUSANNE

Swiss Re New Markets has deals in the pipeline as it evaluates risks related to the production of oil and gas. In what the division of reinsurer Swiss Re has referred to as a "first-of-its-kind" transaction, Swiss Re New Markets teamed up with Enron North America recently to facilitate a $102 million oil and gas production loan.

The five-year loan used a combination of derivatives, insurance and bank credit. Oil and gas producers face risks related to the amount they'll actually be able to produce from given fields and the price they'll be able to sell it for once it is produced, explained Victoria Mace, a director for Swiss Re New Markets in New York. Those risks, in turn, have implications for financing costs, she said, out lining the situation that...

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