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

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

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

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

Dorian Grey, president of Oil Rig at Chartis, said, "Our increased capacity will be used to continue to deliver on our mandate to provide reliable capacity and underwriting leadership."

Asked why Chartis sees this as a favorable time to increase capacity for upstream risks, Mr. Grey said via an e-mailed statement, "Considering the significant increases in the values of offshore platforms, drilling rigs, other assets and related coverage, the additional capacity will enable Oil Rig to maintain its leadership position in the upstream segment of the insurance industry."

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

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Chartis Increases Capacity At Oil Rig Unit For Upstream Energy Risks

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