Bahrain energy company to form captive insurer
A Bahrain energy company plans to establish and manage a captive insurer following a strategic agreement with an affiliate of global risk manager Gallagher.
Bapco Energies, which describes itself as an integrated energy company leading the energy transition in Bahrain, said it has signed a strategic agreement with ACE Gallagher.
Bapco said ACE Gallagher beat four other leading captive managers to secure the position of lead captive manager.
The energy company said the agreement aligned with its efforts to consolidate its insurance portfolio across the Group.
“This strategic approach facilitates the adoption of a unified risk management strategy providing a foundation for long-term sustainability,” the company said. “Furthermore, It reinforces the Company's resilience, stability, and adaptability to evolving insurance-related needs.
“The insurance captive assumes particular significance amid the prevailing challenges in the insurance market, as it empowers Bapco Energies to assert greater control over its insurance portfolio, bolster its negotiating ability with commercial insurance markets, and optimise the overall insurance cost for the Group.”
Mark Thomas, Group CEO, Bapco Energies, said: "We have seen a global surge in the use of captive insurers as a critical risk management tool amidst the challenges of an increasingly hardening insurance market exacerbated by higher rates. We expect this upward trajectory to persist throughout this decade.
“As such, we are delighted to have secured this strategic partnership with ACE Gallagher. Their expertise will be instrumental in strengthening our risk management framework and enhancing our overarching initiatives in centralisation and operational efficiency."
ACE Gallagher CEO Yolla El Khoury (pictured), said: “We are thrilled to join forces with Bapco Energies as we provide expert guidance in the area of captive Insurance.
“This strategic initiative not only demonstrates Bapco Energies’ unwavering confidence in their risk management practices but also paves the way for an enhanced risk profile.
“Our team of highly skilled professionals, drawn from both local and regional talent pools, is fully committed to delivering unparalleled advice that will elevate Bapco Energies’ risk management practices through innovative solutions like captive insurance. With utmost certainty, we anticipate achieving Bapco Energies’ goals of consolidating insurance policies, leveraging economies of scale, and generating revenue by retaining a portion of their risk.”
Bapco’s energy portfolio includes Bapco Refining, Bapco Upstream, Bapco Gas, Bapco Gas Expansion, Bapco Tazweed, Bapco Air Fueling, Bapco Gasoline Blending, Bapco Lube Base Oil, Bahrain LNG, GPIC, Bac Jet Fuel, and Asry.
ACE Gallagher is a leading regional broking firm in the Persian Gulf. ACE has been a broker in the Gulf for 70 years and recently formed a partnership with Gallagher. It has 16 offices spread across seven countries.
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