Catco prepares for Ghana loss
Reinsurance firm Catco has set aside capital to cover potential losses involving a floating production platform at an offshore oilfield in Ghana waters.
A statement from the firm said: “This loss reserve covers 100 per cent of the company’s offshore energy exposures for any of its industry loss warranty contracts up to an industry insured loss of $1.35 billion and represents more than 40 per cent of the company’s total offshore energy exposure of around 8 per cent of net asset value.”
The potential loss comes from the Jubilee field, about 25 miles offshore from Ghana and involves a floating production, storage and offloading system — a ship-like structure moored in place and an alternative to a platform fixed to the seabed.
The Catco statement said: “Technical issues with the FPSO system identified in quarter one, 2016 are expected to result in losses in relation to business interruption, joint hull and machinery policies.”
The statement added that the unaudited net asset value of the company’s ordinary and C shares stood at $1.27 and $1.02 respectively at close of business on Wednesday, August 31.