XL Group’s Complex Accounts unit has teamed with Munich Re’s Green Tech Solutions and consultants New Energy Risk (NER) to deliver an innovative performance insurance policy for a portfolio of fuel cell servers installed across the U.S.

The coverage insures the fuel cells’ performance over 15 years, should the manufacturer be unable to meet its warranty obligations. The $99 million bond issued to help finance the servers was granted investment grade rating, which resulted in notable financing efficiencies. Arthur J. Gallagher was the broker for the transaction.

XL Group launched the coverage in 2013 along with specialized consultants New Energy Risk. The fuel cell technology covered in this deal will enable a grid-independent energy supply for several companies.

This marks the first time an insurance coverage has contributed to a financing bond receiving investment grade rating, making it more attractive to a wider range of investors, according to a statement from XL Group.

XL Group’s Complex Accounts team serves both national and international companies across different industries that are looking for cover from economic and operational risks that could have an unexpected negative impact they’re not able or willing to bear alone.

Munich Re’s Green Tech Solutions team provides unique and tailor-made solutions to enable business in the area of renewable energy and energy efficiency.

New Energy Risk provides innovative data analytics, strategic consulting and financial risk transfer solutions to the renewable energy industry worldwide.

Source: XL Group

Topics Trends AXA XL