Aon Benfield, the world’s premier reinsurance intermediary and capital advisor, announces today that Energi Holdings, a leading industrial captive reinsurance company, has utilized its CapTivate reinsurance solution to support Energi’s growth.

CapTivate is a reinsurance product tailored specifically to captives, which has been developed by Aon Benfield’s Structured Reinsurance team.

CapTivate provides captives with reinsurance cover as a form of collateral, which is required of them by fronting insurance companies. It reduces the need for captives to hold cash or letters of credit, which are a more costly alternative.

In the case of Energi, the CapTivate cover was placed with a leading reinsurance company, rated A by AM Best.

Brian K. McCarthy, Chief Executive Officer of Energi Holdings, said: “With the changing financial environment, banks are now requiring letters of credit to be secured by liquid assets, at the same time increasing letter of credit costs to as much as 250 basis points.  Aon Benfield’s CapTivate solution provides a more cost effective methodology for single parent, group captives, sponsored captives and industrial captives like Energi.”

Dan Malloy, US Head of Structured Reinsurance at Aon Benfield, added: “In today's current credit environment, captives are struggling to find adequate and affordable collateral to secure their obligations to insurance company partners. Aon Benfield has designed a solution which is an alternative to arrangements which are dependent upon bank issued letters of credit. Energi has become one of our first captive clients to take advantage of this structure, which is provided by an A rated leading reinsurer at terms that make sense for all parties."

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About Aon Benfield
Aon Benfield is the world’s premier reinsurance intermediary and capital advisor, providing clients with integrated capital solutions and services. The company offers clients access to every traditional and alternative market in the world, through an international network of offices spanning over 50 countries and more than 4,000 professionals. Its worldwide client base is able to access the broadest portfolio of integrated capital solutions and services, world-class talent, unparalleled global reach and local expertise to best meet their business objectives. Aon Benfield is the industry leader in treaty, facultative and capital markets transactions.

About Energi Holdings Inc.
Energi Holdings is a leading provider of specialty risk management solutions, including insurance and reinsurance, to certain sectors of the Energy Industry.  Founded in 2005 by accomplished insurance professionals and energy industry leaders, Energi’s competitive strengths include the ability to attract quality value-oriented clients and the development of proprietary loss prevention, claims management, and risk selection techniques.  The Company is the sole shareholder of Energi Insurance Services, Inc., a Massachusetts corporation, and is a preferred shareholder in Hurst Holme Insurance Company Limited (“Hurst Holme”), a Bermuda reinsurance company registered and licensed under Bermuda law. www.energiholdings.com

For further information please contact:
 

David Bogg
London
t: +44 (0)20 7522 4016
e: david.bogg@aonbenfield.com
 

Andrew Wragg
London
t: +44 (0)20 7522 8183
e: andrew.wragg@aonbenfield.com