May 2011 Investor Presentation HOUSTON AMERICAN ENERGY CORP.
University of Houston Energy Panel
description
Transcript of University of Houston Energy Panel
Liberty International Underwriters
University of HoustonEnergy Panel
Steven P. Weiss, CPCU, AMIM, NAMS-CMS
Vice President – Marine Risk Engineering and Project Cargo
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A little humor
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Energy Case Study
• Discussion of how the pieces fit together– Assured– Agent/Broker/Wholesale Broker– Insurance Company– Reinsurance Company
• Liberty Mutual
• Willis Loss Data base
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Insurance Flow
Assured
Broker/Agent
Wholesale Broker
Underwriter
Reinsurer
Reinsurance Broker
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Assured
• The Assured is the purchaser of the insurance
• Normally through Broker or Agent
• Pays Commission or fee for services to Broker
• Pays premium to Underwriter
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Broker/Agent
• One who for commission or fee, brings parties together and assists in negotiating contracts between them
• Representative of the Assured
• Receives Fee for service from Assured or commission from Underwriter
• Many are very well trained and knowledgeable
• Also know as the Retail Broker/Agent
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Wholesale Broker
• Intermediary between retail Broker/Agent and Underwriters if the B/A does not have the proper market
• Normally commission paid by Underwriter
• Represents the Insured sort of as well as the retail broker
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Underwriter
• Reviews the risk as presented by the broker
• If the risk is within appetite then assumes the risk for the loss of life, property or finances of another
• Pays commission to the Broker if agreed up front
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Reinsurance Broker
• One who for commission or fee, brings parties together and assists in negotiating contracts between them
• Places insurance for insurance companies
• Normally commission paid by reinsurer
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Reinsurer
• Insures who insure other Insurance companies
• Pay commission to Reinsurance Broker
• Often pay override to the ceding insurer
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Liberty Mutual
Liberty Mutual
Agency Markets Commercial Markets Personal Markets Liberty International
Liberty International
UnderwritersLM Surety Safeco Regional Companies
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LM by the Numbers - 2007
2007
ActualCommercial Markets $6,489,000,000
Personal Markets 5,829,000,000
Agency Markets 5,569,000,000
Liberty International 6,148,000,000
Other 1,926,000,000
Total $25,961,000,000
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Financial Highlights LIU
• LIU 2007 Premium – over $2.5B
• Liberty Mutual 2007 Worldwide Revenue of $25.5 Billion up from $23.5 Billion in 2006
• Statutory Surplus - $14.0B (7.0% increase)
• Total Assets – Over US$85 billion
• World-class Fortune 100 (# 94) financial standing1.AM Best – A (Excellent)2.Moody’s – A2 (Good)3.Standard & Poor’s – A- (Strong)
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Willis Data base
• Collection of losses in excess of USD 1,000,000 at time of loss since 1972
• May or may not have been insured
• Does not account for sublimits
• 8,011 losses since 2008
• 124 plus billion in dollars
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Willis Loss Database - uses
• Project comparing premium vs losses to see how tight margins actuall are
• Can specify OEE – operators extra expense – Blow outs and well control costs– Operational
• What insurance is rated on
– Can also compare CAT to operational
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Examples
• Willis losses.pdf
• https://online1.willis.com/sites/EL/W_ELViewer.aspx
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Other Resources
• http://www.iii.org/
• http://www.aicpcu.org/
• http://www.libertymutual.com
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Summary
• A bit on Insurance operations
• A bit on Liberty Mutual
• A bit of the Willis loss data base
• What questions do you have for me?