NU Online News Service, August 10, 3:55 p.m. EDT

Chartis announced it will increase its underwriting capacity atthe Oil Rig unit of its Global Marine and Energy Division to $200million from $150 million.

The company said the increase "highlights the Chartis insurers'commitment to offer a broad range of insurance protection to theupstream and offshore segment of the oil and gas extractiveindustries worldwide."

The "upstream" segment of the oil and gas market refers to thesearch for and production of crude oil and natural gas.

Dorian Grey, president of Oil Rig at Chartis, said, "Ourincreased capacity will be used to continue to deliver on ourmandate to provide reliable capacity and underwritingleadership."

Asked why Chartis sees this as a favorable time to increasecapacity for upstream risks, Mr. Grey said via an e-mailedstatement, "Considering the significant increases in the values ofoffshore platforms, drilling rigs, other assets and relatedcoverage, the additional capacity will enable Oil Rig to maintainits leadership position in the upstream segment of the insuranceindustry."

In June, Willis Group Holdings said in its Energy Market ReviewNewsletter that insurers are seeking to impose rate increases for upstream risks,particularly on drilling contractor fleets, after the industrysuffered $795 million in losses within the space of a single monthfrom the Deepwater Horizon and Aban Pearl drilling rigs.