Liberty Specialty Markets (LSM), part of Liberty Mutual Insurance, has launched a new project finance offering as part of its Global Financial Risks (GFR) product range.

Peter Sprent

Liberty’s GFR team has expanded its coverage to include credit insurance for large-scale energy and infrastructure projects. Led by Sam Wilde, Senior Underwriter, the team has now bound its first project finance transaction, a UK-based renewables project.

LSM is offering up to $50m cover per transaction for up to 15 years duration. The team has developed a strong analytics-driven underwriting strategy, benefiting from access to over 30 years of project finance performance data.

The product also provides the potential for the GFR team to work in tandem with LSM’s Construction and Energy teams which have deep experience of the construction and technology risks inherent in the underlying projects. The various teams can now be involved in the same project, although underwriting different risks associated with it.

Peter Sprent, Liberty’s Head of Global Financial Risks said: “This is an exciting development for us. Large-scale project finance is a non-correlating, diversifying risk that enhances the GFR book of business.

“With huge growth in major renewables projects, even in the traditional oil-rich territories like the Middle East, we see considerable potential for this type of product. Feedback from our brokers has also demonstrated a clear appetite within the market for this LSM product.

“These are long-term projects with very lengthy lead times and the need for a holistic approach to underwriting. By combining data-driven analytics with our team’s in-depth experience, we believe we can provide considerable value to our core clients while supporting projects that make a positive impact on both mature and emerging economies.”