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Article: Energy capacity shrinks as storm losses mount.(News)
- Article from:
- Business Insurance
- Article date:
- January 19, 2009
- Author:
CopyrightCOPYRIGHT 2009 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: ZACK PHILLIPS
The departure of a Lloyd's of London insurer from the Gulf of Mexico offshore windstorm market illustrates the sector' s shrinking capacity in the wake of the 2008 hurricane season, brokers and observers say.
Lloyd's specialist insurer Advent Capital (Holdings) P.L.C. said earlier this month that it no longer would write Gulf of Mexico offshore energy business with windstorm exposure due to revised damage estimates from Hurricane Ike, which increased its projected losses from about $22 million to about $61 million. As a result, the firm said it expects to incur a loss for 2008.
Advent is not a lead underwriter, so brokers ...