Transocean insurer says its prices rise 40%, others 50%
One of Transocean’s Deepwater Horizon rig insurers WR Berkley, says it has raised prices for insuring offshore oil rigs 40%, with some firms raising prices 50%, Dow Jones and Reuters report.
Berkley hasn't scaled back on its willingness to cover oil rigs. Robert Berkley Jr, president and chief operating officer, said charging more for the coverage "seemed like a better choice."
He added: "We would write the exposure again at the rate we charged, but we would happily write it again at a 40% increase."
Good for Warren Buffett?
Chairman Bill Berkley said demand for insuring offshore oil platforms will rise, even with price increases. Warren Buffett's Berkshire Hathaway could benefit as one of the few companies with the capacity to cope.
"It may end up proving to be a wonderful opportunity for Mr. Buffett," chairman Berkley said.
Reuters said Berkley was an insurer of the Transocean rig, and has paid out $25m on it, but after reinsurance, its net payout is $5m.
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