Swiss Re New Markets and Mirant Offer Generator Forced Outage Insurance Product.Business Editors and Energy Writers NEW YORK--(BUSINESS WIRE)--Oct. 10, 2001 Swiss Re Swiss Re is the world’s largest reinsurer, now that it has acquired GE Insurance Solutions (Ligi 2006). Founded in 1863, Swiss Re now operates in more than 30 countries. General Electric owns 8.9% of the firm. New Markets Corp. (SRNM SRNM Swiss Re New Markets SRNM Startup Range Neutron Monitor (Nuclear Power) SRNM Spanish Recolonization of New Mexico SRNM Spolecenství Romu na Morave ) announced today that it has entered into a cooperation agreement with Mirant to provide generator forced outage insurance (GFOI). The cooperation will focus on investor-owned utilities, municipals and cooperatives with less than 2000 MWs of generating capacity, and independent power producers with less than 3,000 MWs of capacity in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . Volatile power markets are a major risk for power generation companies. "The threat of unplanned outages combined with increased replacement costs or lost revenue can substantially impact the financial performance of power producers ," said Dave McKenzie David ("Dave") Closs McKenzie (born March 16, 1943 in Dunollie) is a former long-distance runner from New Zealand, who represented his native country in the men's marathon at two consecutive Summer Olympics, starting in Mexico City (1968). , director, New Business Development, Mirant. "With GFOI, power generation companies can have an added level of protection against an unexpected forced outage period." GFOI is triggered when a generating unit is not operating due to a forced outage or derating Derating is the technique employed in power electrical and electronic devices wherein the devices are operated at less than their rated maximum power dissipation taking into consideration the case/body temperature, ambient temperature and the type of cooling mechanism used. and the price of electricity is in excess of a defined strike price. "Companies today are more willing to explore insurance-based solutions to mitigate earnings and cash flow volatility," said William Anderson William Anderson or Bill Anderson may refer to:
The cooperation between SRNM and Mirant brings together a strategic combination of insurance and power industry professionals to satisfy the needs of this important market segment. McGriff, Seibels & Williams will be marketing coverage and providing brokerage and policy services. An affiliate of SRNM will be providing the structure and substantial capacity to underwrite the risk. This is an open cooperation arrangement. Other market participants and intermediaries can approach the SRNM affiliates for GFOI coverage provided by this cooperation. Mirant Bermuda, Ltd., an affiliate of Mirant, will be assuming a portion of the GFOI risk through reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. . Mirant has implemented similar coverage for its own generation, and will be providing engineering, risk management and operational advice to Mirant Bermuda Ltd. Swiss Re New Markets is a division of Swiss Reinsurance Company (Swiss Re), one of the world's leading reinsurers with over 70 offices in more than 30 countries. In the 2000 financial year, gross premium volume amounted to CHF CHF In currencies, this is the abbreviation for the Swiss Franc. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 26.1 billion (USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 15.4 billion) and the net income after tax reached CHF 3 billion (USD 1.8 billion). Mirant is one of the world's leading competitive energy providers. Headquartered in Atlanta, the company has integrated energy operations in North and South America, Europe and Asia. A leader in energy risk management and marketing of power, natural gas and other energy commodities, Mirant has one of the industry's largest energy commodity trading floors. We see the opportunity to change the world with our energy(SM). Come see how at www.mirant.com. McGriff, Seibels & Williams, Inc. is a leading international risk consultant and insurance brokerage firm and is the largest independent energy broker in the United States. |
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