|By PR Newswire||
|September 30, 2013 10:00 AM EDT||
ZURICH, Sept. 30, 2013 /PRNewswire/ -- XL Group's Complex Accounts team is pleased to announce that it has provided an innovative new Performance Warranty insurance product to Bloom Energy of Sunnyvale, California. The new cover XL Group developed has enabled Bloom Energy to finance the installation of dozens of Bloom Energy Servers, totaling 6.1MW in capacity. These systems are expected to generate over 50 million kilowatt hours of clean, reliable electricity. The XL Group insurance policy assures the performance of Bloom's fuel cell server technology over the term of the financing.
Joachim Walch, Head of XL Group's Complex Accounts unit said: "Companies seeking to implement innovative projects, often in newer industries, find they cannot get the insurance cover they need. But moving forward means risk and our role as insurers is to find innovative answers to new challenges.
"Our Complex Accounts team is dedicated to work closely with the different parties involved in a project, to be able to develop risk transfer solutions that cannot be found elsewhere in the market. By having our experts on both sides of the Atlantic work together with Bloom Energy and their consultants we were able to create a bespoke insurance product that helped move this important project forward."
The insurance solution was developed together with consultants New Energy Risk and with Arthur J. Gallagher & Co. acting as broker. According to advisors representing the lender, Silicon Valley Bank, the XL Group solution is "the first insurance warranty product we have seen, that actually makes a difference to the lender."
The transaction involves the use of an innovative financing approach developed by Bloom and its finance and insurance partners, whereby the energy off-taker entered into a long term agreement to purchase the electricity (a PPA), and the generation of the electricity is backed by a Bloom Product Performance Warranty, which is in turn fully insured by XL Group. Financing is being provided by Silicon Valley Bank. This high-value approach has enabled uniquely efficient and cost effective financing. The policy is provided by XL Group insurance company Indian Harbor Insurance Company.
XL Group's Complex Accounts team partners with both national and international companies across different industries that are looking for cover from economic risks which could potentially have an unexpected negative impact that they're not able or willing to bear alone. These may include risks to specific innovation-related projects, a business' value chain, or its annual revenue or profitability. Starting where other insurers traditionally set their limits, the team creates unconventional coverage for truly unique operational business risks. At present their geographic focus is primarily in Europe; in the United States they work exclusively in partnership with New Energy Risk.
About XL Group plc's Insurance Operations
XL Group plc's insurance companies offer property, casualty, professional and specialty insurance products globally. Businesses that are moving the world forward choose XL as their partner. To learn more, visit xlgroup.com/insurance
About XL Group plc
XL Group plc (NYSE: XL), through its subsidiaries, is a global insurance and reinsurance company providing property, casualty and specialty products to industrial, commercial and professional firms, insurance companies and other enterprises throughout the world. XL is the company clients look to for answers to their most complex risks and to help move their world forward. To learn more, visit www.xlgroup.com
XL Group is the global brand used by XL Group plc's insurance and reinsurance subsidiaries.
About Bloom Energy
Bloom Energy is a provider of breakthrough solid oxide fuel cell technology generating clean, highly-efficient on-site power from multiple fuel sources. The company was founded in 2001 with a mission to make clean, reliable energy affordable for everyone in the world. Bloom Energy Servers are currently producing power for several Fortune 500 companies including Google, Walmart, AT&T, eBay, Staples, The Coca-Cola Company, as well as notable non-profit organizations such as Caltech and Kaiser Permanente. The company is headquartered in Sunnyvale, CA. For more information, visit www.bloomenergy.com.
About New Energy Risk
New Energy Risk provides innovative data analytics, strategic consulting, and financial risk transfer solutions to the renewable energy industry, worldwide. New Energy Risk is a privately held firm based in Menlo Park, CA and Fairfield, CT. For more information, visit www.newenergyrisk.com.
About Arthur J. Gallagher & Co.
Arthur J. Gallagher & Co., an international insurance brokerage and risk management services firm, is headquartered in Itasca, Illinois, has operations in 20 countries and offers client-service capabilities in more than 140 countries around the world through a network of correspondent brokers and consultants.
SOURCE XL Group