NEW INSURANCE FACILITY WILL PROVIDE UP TO $500 MILLION IN PROTECTION FOR ENERGY COMPANIES OPERATING IN GULF OF MEXICO
Triple C Facility Designed to Stabilize Insurance Cost, Coverage Up To Five Years
NEW YORK, February 24, 2009 — Marsh, the world's leading insurance broker and risk advisor, today announced the creation of a one-of-a-kind property insurance program that can provide up to $500 million of annual capacity, in the aggregate, for windstorm losses incurred by all participating oil and gas companies operating in the Gulf of Mexico in a given policy year.
Marsh's Cost and Coverage Certainty Program, known as the Triple C Facility, was developed in conjunction with the Berkshire Hathaway Group. The Triple C Facility is designed to provide oil and gas companies operating in the Gulf of Mexico with insurance protection, on a pooled basis, with pricing stability, and for a period of five years. Underwritten by members of the Berkshire Hathaway Group, the program is currently available exclusively through Marsh.
"The series of severe hurricanes that struck the Gulf of Mexico during the past five years have drained insurance capacity and left many energy firms with few, if any, alternatives to obtain the levels of coverage they require at stable prices," said Jim Pierce, chairman of Marsh’s Global Energy Practice. "We believe that the Triple C Facility will address a serious exposure for these businesses in an acutely challenging economic cycle when the effects of a large uninsured loss might be devastating."
The Triple C Facility will offer participating businesses flexibility in coverage design and structure, including a choice of limits of $100 million per occurrence or $50 million per occurrence and a variety of attachment points, ranging from $20 million to $250 million per occurrence.
Additional information regarding the Triple C Facility is available by contacting Bertil Olsson, managing director, Marsh's Energy Practice-Houston, at 713-276-8711.
About Berkshire Hathaway Inc.
Berkshire Hathaway Inc. is a holding company owning subsidiaries that engage in diverse business activities including property and casualty insurance and reinsurance, utilities and energy, finance, manufacturing, retailing and services. Common stock of the company is listed on the New York Stock Exchange, trading symbols BRK.A and BRK.B. Berkshire Hathaway Group consists of certain insurance company subsidiaries of Berkshire Hathaway Inc.
About Marsh
Marsh has 24,000 employees and provides advice and transactional capabilities to clients in over 100 countries. Marsh is a unit of Marsh & McLennan Companies, Inc. (MMC), a global professional services firm with more than 54,000 employees and annual revenue exceeding $11 billion. MMC also is the parent company of Guy Carpenter, the risk and reinsurance specialist; Mercer, the provider of HR and related financial advice and services; Oliver Wyman, the management consultancy; and Kroll, the risk consulting firm. MMC's stock (ticker symbol: MMC) is listed on the New York, Chicago and London stock exchanges. MMC’s Web Site is www.mmc.com.
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