Extension of Octopus

RNS Number : 1755R

Lancashire Holdings Limited

27 April 2009

 

Lancashire Insurance Group

London 

27 April 2009

Extension of OCTOPUS 

OCTOPUS opened to new clients. 

Lancashire Insurance Group ('Lancashire') today announces the extension of OCTOPUS to new clients. OCTOPUS provides transparent insurance protection against windstorm losses to oil and gas companies operating in the Gulf of Mexico. OCTOPUS has previously only been available to existing Lancashire clients.

OCTOPUS is designed to ease the current dislocation in the offshore energy insurance market caused by Hurricane Ike in September 2008, which was one of the top three most damaging hurricanes to the Gulf of Mexico energy industry. Insurance capacity is estimated to have halved since Hurricane Ike, creating an unstable and uncertain pricing environment.

As a leading Gulf of Mexico energy insurer, Lancashire has acted to reduce the uncertainty facing clients and brokers, and OCTOPUS provides a viable option for Gulf of Mexico clients seeking windstorm protection. Specific features include:

- Clear coverage for fixed deepwater assets and self-propelled drilling units on a total loss basis

- Minimum commitment per unit of $25m 

- No sharing of limit or aggregate

- Units individually rated up to a maximum of 7.5% Rate on Line net

- Standard payment terms and no multi-year purchase requirement

Richard Brindle, Group Chief Executive Officer, commented: 

'In challenging times you look for certainty and Lancashire is delighted to extend OCTOPUS to new clients. The Gulf of Mexico energy market is currently in a state of disarray with capacity severely constrained and no discernible consensus on pricing. Alternative options have been unable to offer certainty, providing cover on a pooled basis with a shared aggregate, thus uncertainty for clients remains.    

OCTOPUS provides clients with the certainty they seek and further strengthens Lancashire's position as a leading provider of innovative and user friendly insurance products.' 

OCTOPUS will be available for a limited time only and is subject to available capacity.  

For further information, please contact:

Lancashire Insurance Marketing Services Limited	+ 44 (0) 20 7264 4007
Alex Maloney	+ 44 (0) 7817 425 450
Financial Dynamics	[phone]
Nick Henderson
Ed Berry

About Lancashire

Lancashire Holdings Limited, through its UK and Bermuda-based insurance subsidiaries, is a global provider of specialty insurance products. Its insurance subsidiaries carry the Lancashire group rating of A minus (Excellent) from A.M. Best with a stable outlook. Lancashire Holdings Limited has capital in excess of $1 billion dollars and its Common Shares trade on the FTSE All Share under the ticker symbol LRE. Lancashire is headquartered at Mintflower Place, 8 Par-La-Ville Road, Hamilton HM 08, Bermuda. The mailing address is Lancashire Holdings Limited, P.O. Box HM 2358, Hamilton HM HX, Bermuda. For more information on Lancashire, visit the Group's website at www.lancashiregroup.com. 

Lancashire Insurance Marketing Services Limited is authorized and regulated by the UK Financial Services Authority

NOTE REGARDING FORWARD-LOOKING STATEMENTS

CERTAIN STATEMENTS MADE IN THIS ANNOUNCEMENT THAT ARE NOT BASED ON CURRENT OR HISTORICAL FACTS ARE FORWARD-LOOKING IN NATURE INCLUDING, WITHOUT LIMITATION, STATEMENTS CONTAINING WORDS 'BELIEVES', 'ANTICIPATES', 'PLANS', 'PROJECTS', 'INTENDS', 'EXPECTS', 'ESTIMATES', 'PREDICTS', 'MAY','WILL', 'SEEKS', 'SHOULD' OR, IN EACH CASE, THEIR NEGATIVE OR COMPARABLE TERMINOLOGY. ALL STATEMENTS OTHER THAN STATEMENTS OF HISTORICAL FACTS INCLUDING, WITHOUT LIMITATION, THOSE REGARDING THE GROUP'S FINANCIAL POSITION, RESULTS OF OPERATIONS, LIQUIDITY, PROSPECTS, GROWTH, BUSINESS STRATEGY, PLANS AND OBJECTIVES OF MANAGEMENT FOR FUTURE OPERATIONS (INCLUDING DEVELOPMENT PLANS AND OBJECTIVES RELATING TO THE GROUP'S INSURANCE BUSINESS) ARE FORWARD-LOOKING STATEMENTS. SUCH FORWARD-LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER IMPORTANT FACTORS THAT COULD CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE GROUP TO BE MATERIALLY DIFFERENT FROM FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. THESE FORWARD-LOOKING STATEMENTS SPEAK ONLY AS AT THE DATE OF THIS ANNOUNCEMENT OR OTHER INFORMATION CONCERNED. LANCASHIRE HOLDINGS LIMITED EXPRESSLY DISCLAIMS ANY OBLIGATION OR UNDERTAKING (SAVE AS REQUIRED TO COMPLY WITH ANY LEGAL OR REGULATORY OBLIGATIONS (INCLUDING THE RULES OF THE LONDON STOCK EXCHANGE)) TO DISSEMINATE ANY UPDATES OR REVISIONS TO ANY FORWARD-LOOKING STATEMENTS CONTAINED HEREIN TO REFLECT ANY CHANGES IN THE GROUP'S EXPECTATIONS WITH REGARD THERETO OR ANY CHANGE IN EVENTS, CONDITIONS OR CIRCUMSTANCES ON WHICH ANY SUCH STATEMENT IS BASED. 

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