Powering growth. Innovative insurance solutions for on- and offshore wind power

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1 Powering growth Innovative insurance solutions for on- and offshore wind power

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3 Contents More power to wind power Our solution: Transfer individual project-related risks Services at a glance Serial Loss Cover Contractual warranties of offshore constructions (EPC Cover) Operation and maintenance cost overrun: O&M Cover Lack-of-Wind Wind Energy Yield Cover (WEYC) Power your business Contacts Munich Re Innovative insurance solutions for on- and offshore wind power 1

4 More power to wind power Once reliant on subsidies and tax incentives for business viability, wind power is now the third-biggest contributor to the European renewable energies mix, accounting for 12.7% 1. As the industry continues to expand and competition increases, tailored risk-transfer solutions can play a key role in cost-effective, long-term operation. After many years of vigorous growth followed by a moderate slump, the wind energy sector has stabilised. Many large-scale projects are ongoing or planned, including offshore installations in Asia and onshore wind farms in North America. Technologies have matured and worldwide fabrication of components has increased further notably in China creating economies of scale. Wind turbine generators (WTGs) are now regarded as a reliable and profitable source of clean and renewable energy. As a result, tendering processes have become more competitive. Ever-larger turbines with higher megawatt outputs are being planned in ambitious onshore and offshore projects. These developments place wind farms under increasing cost pressure, both in the construction phase and in ongoing operation. The renewable energies and wind power specialists at Munich Re have developed an array of targeted insurance solutions to create optimum conditions and security for investors and operators. In the following pages, you can gain a first impression of our offering and how you can benefit from it. 1 Source: Eurostat Munich Re Innovative insurance solutions for on- and offshore wind power

5 Our solution: Transfer individual project-related risks During the construction and operating phases, wind farm projects are generally covered against physical damage, accidents and natural hazards by conventional insurance products. Our solutions go further: We offer our support in end-to-end risk management, including preparation for extreme losses that can have a serious impact on business performance. Munich Re collaborates closely with the wind power industry, investors and banks to identify gaps in cover that pose a financial threat to wind power projects at all stages of the value chain. Services at a glance: The Serial Loss Cover provides on- and offshore wind farms with comprehensive protection against the large-loss scenario dreaded by all manufacturers and suppliers. The cover enhances the credibility of guarantees and protects balance sheets. The EPC Cover protects EPC contractors and component suppliers against the impact of large warranty claims due to faulty construction (certified design), faulty material, faulty production or poor workmanship. The O&M Cover enables owners and investors of wind farms to enhance their cash-flow model by taking advantage of lower-cost O&M contracts from independent service providers. Tailored to each wind farm project and business plan, it closes the gap by covering unforeseen and high-impact risks. With a Lack-of-Wind Cover operators can cushion the impact of profit losses in less windy years by using easily available model parameters. This enhances planning certainty for investors and banks. A Wind Energy Yield Cover extends the security provided by a Lack-of-Wind Cover to form a solution based on the actual power generation that includes risks such as wind farm availability and efficiency. The traditional covers Contractors All Risks (CAR), Advanced Loss of Profit (ALoP) and Operational All Risks (OAR) complete our offering. Through its Corporate Insurance Partner (CIP) unit, Munich Re offers innovative solutions for all players in the wind power sector: manufacturers, suppliers, service providers, investors and project developers. Munich Re Innovative insurance solutions for on- and offshore wind power 3

6 Serial Loss Cover Fulfilling guarantee obligations in the face of large serial losses a challenge for wind turbine manufacturers and main component suppliers. The risk of serial losses is especially pronounced when manufacturers integrate new technologies or up-scale to larger sizes. If, for example, the design of a new WTG component includes systematic defects, these could remain undiscovered until after installation or even after years of operation. Generally, defective components cannot be replaced immediately as root cause analysis and improvement measures take time. Adding to the fact that disassembly and reassembly require a great deal of planning, the limited number of available specialists and requisite equipment can cause further delays. The loss suffered by the WTG manufacturer during the guarantee period or due to other contractual liabilities can constitute a substantial financial burden. A serial loss may involve hundreds of WTGs, each of which may cost tens of thousands of euros. Under the full-service agreements (FSA) common in the industry, the manufacturer is liable not only for rectifying defective components, but also for any technical availability guarantees provided. In the case of offshore wind farms, guarantee costs are often ten or even twenty times higher than in onshore facilities. This is mainly due to enormous offshore logistics costs and delays caused by adverse weather and sea conditions. Overview of insurance covers Hazards covered Property Machinery Serial loss cover guarantee cover cover Fire yes Natural catastrophes yes Physical damage yes yes Individual failures yes Serial losses limited yes Pro-active repairs (retrofits) yes Faulty material yes Faulty production yes Faulty design (certified) yes Poor workmanship yes Suppliers warranty default yes Availability guarantee (onshore) yes Multi-year cover yes Policy cancellable following claims yes yes Credible guarantees, secure balance sheet Our Serial Loss Cover provides greater certainty in financial planning. Our innovative solutions can benefit not only WTG manufacturers, but also suppliers of high-tech components such as gearboxes, rotor blades or bearings. As we explicitly cover the rectification of defects (retrofits), losses arising from serial issues that have not yet resulted in any material damage and require proactive measures to keep the WTG running are also included. In addition, the Serial Loss Cover protects WTG manufacturers in the event that a supplier is unable to fulfil agreed back-to-back guarantees for defective components. In short, our solutions give you peace of mind and protection against this technical large-loss scenario in the wind industry. Better business with optimised quality and risk management Our Serial Loss Cover designed specifically for the wind industry supports risk management as well as quality assurance and control. It delivers a cost-effective alternative to traditional property insurance. This is particularly relevant considering that a company s financial position is generally endangered by large-scale risks such as serial losses rather than by common technical frequency losses. Premium calculations show that depending on the cover structure the Serial Loss Cover in combination with optimised risk management can reduce overall insurance costs by replacing the traditional machinery guarantee cover. Long-term guarantee protection To provide extended insurance protection for a term of up to five years, we have developed a long-term guarantee solution. In the onshore segment, our multi-year cover can be concluded for WTG manufacturers (OEMs) for the entire WTG fleet. It remains in effect until the end of their guarantee period (up to a maximum of five years). For (large-scale) offshore projects, we offer an individual project-based cover to increase your planning certainty. We also protect you against serial losses arising from guarantees in connection with faulty design (certified), material defects, faulty production and bad workmanship or maintenance even if the error was caused by your supplier. 4 Munich Re Innovative insurance solutions for on- and offshore wind power

7 How does a serial loss come about? It arises when multiple WTGs fail due to: Issues based on the same cause, such as design or production faults, and related to each other both temporally and materially Problems resulting from the delivery of components/material that have the same defect. Onshore covers include an availability guarantee Do you guarantee that the wind farms you build will fulfill a defined minimum level of technical availability? In cases of serial losses, large numbers of WTGs involved may mean that repairs and component replacements take a very long time. If the WTGs have to be switched off until the work is completed, the delay may result in substantial loss-of-revenue indemnification payments. Our Serial Loss Cover can cover this risk for onshore WTGs as well. Offshore covers include offshore logistics costs Your full-service agreement obliges you to assume costs for special vessels and crew. If a serial loss occurs, chartering the required ships on a short-term basis can be extremely costly. Replacing large components at sea can pose a major challenge. These aspects are insurable with our Serial Loss Cover up to an Offshore Sublimit. We also cover optionally weather-related delays during serial loss rectification works. Leave the bulk of large losses to Munich Re We record a serial loss as a single event even if rectification of all related individual failures takes several years. All insured WTGs affected by a serial loss will be subsumed under a single overall claims scenario and allocated to one financial year (in which the initial loss occurred). As a result, the insured s deductible in our Serial Loss Cover applies only once for any financial year, regardless of how long the rectification of a serial loss needs. For clarity on this specially defined deductible, we have termed it annual aggregate deductible (AAD). Munich Re s liability starts in excess of the AAD up to the pre-agreed policy limit. However, the insured is expected to keep a proportional share: a self-insured-retention (SIR) of 10 20% as a second deductible. The policy structure (policy limit, AAD, SIR) is individually adapted to your risktransfer needs and suitable insurance premium costs for your company. By starting where most traditional insurers stop, our solutions prevent the potential cost of serial losses from becoming a serious threat to your company. By starting where most traditional insurers stop, our solutions provide you with protection that prevents the potential cost of serial losses from becoming a serious threat to your company. Each offshore project or onshore commissioning year is separately insured, with the term of the insurance policy corresponding to the period of guarantee. Any serial loss will be allocated to the year in which the first loss occurs. You keep an annual deductible for that financial year, even if more than one serial loss may have occurred. The insurance covers any losses beyond that. Start of operation Serial loss Insurance period Suppliers limited warranty Business years Munich Re Innovative insurance solutions for on- and offshore wind power 5

8 Contractual warranties of offshore constructions (EPC Cover) Our EPC Cover protects EPC contractors and component suppliers against the impact of large warranty claims due to faulty design (certified), faulty material, faulty production or bad workmanship. EPC contractors face a constant stream of new technical and logistical risks. As general contractors, they are ultimately responsible for completing the project on time and for alignment of technical features of installed components. The EPC contractor responsible for foundations, for example, guarantees proper design, material quality, production, shipment, installation and long-term stability of the foundations for about a dozen suppliers and subcontractors. The owners of the wind farm usually insist on liabilities of 50% to 100% of the total contract value in the form of extensive multi-year guarantees. 6 Munich Re Innovative insurance solutions for on- and offshore wind power

9 These EPC guarantees are not usually covered by conventional insurance. Should a foundation supplier fail in the event of insolvency or a large guarantee loss, the obligation to cover remaining losses falls on the EPC contractor. This adds up to a significant risk of extremely large liability claims. Challenges an EPC contractor faces The installation of foundations and cables involves risks that could jeopardise the success of an entire project and even threaten the financial viability of an EPC. This places great importance on quality assurance and control in the offshore industry. Any component defects that are not detected onshore can be costlier by a factor of ten or even twenty once installed offshore. Material defects: Material defects: Any quality defects in steel foundations substantially reduce the operational lifespan of wind power plants. One such case occurred in 2014, when a wind farm operator sued an EPC contractor due to extreme inconsistency of quality in the foundation steel, which was discovered just before final shipment. Repairs had to be carried out at great cost and the operator claimed a loss of revenue totalling several hundred million euros. Problems can also arise in transit. Rough seas can expose foundations to incalculable forces, which can lead to severe metal fatigue during the crossing. This metal fatigue can result in major losses after operation begins. Technical problems with cables and transmission technology can also result in a significant loss of revenue. For example, the failure of an export cable in the German North Sea could disconnect up to three wind farms for months on end with losses of several hundred million euros. Design and construction risk: The foundations of large offshore wind farms are subjected to extreme forces. If such forces are underestimated in the calculation models for design and construction, the service life of foundations can be reduced significantly. Once a certain number of foundations are affected, the event becomes a serial loss which might affect the whole wind farm. Manufacturing and installation defects: Welding and corrosion protection technologies entail major risks for the entire supporting structure. Steel foundations, including those termed jacket foundations, are made up of individually welded pipes. Despite today s sophisticated technology, welding is still a challenge, especially when parts are difficult to access. This may result in quality issues regarding the strength and stability of a foundation. Defective corrosion protection due to poor workmanship may have similar consequences. These issues might become visible only years after wind farm commissioning, and require costly and time-consuming offshore repairs. There is also a risk that inter-array cables may not be installed correctly, for example if the bend radius is not maintained or a cable is not laid deep enough in the seabed. Premature cable failures can bring an entire wind farm to a standstill. Your benefits: More liquidity, higher bankability, enhanced competitive strength Major guarantee losses may be rare, yet they must still be included in risk management considerations. The fact that they are not covered under a wind farm s Contractors All Risks (CAR) policy or Operational All Risks (OAR) cover means major guarantee losses can have devastating consequences for the EPC contractor and its suppliers. It is precisely this gap in cover that Munich Re s EPC Cover closes. The solution acts as a form of back-up for existing EPC guarantees, covering the extremely high costs of offshore works and part replacements. In addition, weather-related delays (waiting on weather) during repair work can be insured. The cover not only protects an EPC contractor s balance sheet in the event of a major loss, but also gives the company the liquidity required to take action. The coverage of an EPC contractor s guarantees is also a persuasive argument when seeking financing from banks and potential investors. Without an EPC Cover, the bankruptcy of a general contractor would not only have catastrophic financial consequences, but would also cause significant delays to repair work. An EPC Cover makes it easier for firms in the offshore sector to act as EPC contractors, enabling them to provide the requisite high guarantees. This makes the market more attractive to EPC contractors, with positive long-term effects such as increasing competition for contracts and lower bids. Munich Re Innovative insurance solutions for on- and offshore wind power 7

10 Operation and maintenance cost overrun O&M Cover The cover protects wind farm owners and investors against the impact of significant operation and maintenance risks. It is tailored for each wind farm project and business plan and designed to lower capital expenditure needs. Original equipment manufacturers (OEMs) of wind turbine components typically provide 2 4-year warranties for their products, possibly followed by an extended warranty period covering identified defects. After the expiry of OEM warranties, the wind farm owner can choose between different options. These include full-service agreements (FSAs) with the OEM and basic operation and maintenance (O&M) contracts with independent service providers (ISPs), which may be available at lower cost, but generally exclude large repairs or the replacement of entire components. To cover this risk, which increases as the wind farm ages, operators have traditionally required large capital reserves. Planning for unscheduled maintenance costs Taking advantage of lower-cost offers from an ISP to manage the O&M needs of a wind farm significantly reduces operating costs. However, this requires a separate solution to plan for the costs for major component replacements, considered unscheduled maintenance. Factoring this risk into a business plan is complex and challenging. Even if a best estimate of average unscheduled maintenance costs over the entire service life exists, these costs largely depend on the quality of the WTG and the experience of the ISP. Taking various scenarios into account, for example replacement of all gearboxes due to serial defects, there is a continuing risk that the retained unscheduled maintenance budget will be exceeded. These risks can threaten the profitability of entire wind farm projects. Combine your ISP contract with our O&M cover Our O&M Cover reduces the complexity and capital reserve requirements. It closes the gap between OEM warranties and ISP service liabilities, providing financial coverage for unscheduled maintenance costs. Munich Re offers the individually tailored O&M cover to owners and investors of newly designed wind farms within a timeframe of up to ten years of operation. The coverage includes unforeseen and unscheduled maintenance costs substantially exceeding best-estimated reserves in the wind farm business plan. Additionally, we offer coverage against loss of revenue due to downtimes resulting from the replacement of insured major components up to a Downtime Sublimit. As a result, profitability can be significantly enhanced, especially during the initial years of operation when the capital burden is typically large. 8 Munich Re Innovative insurance solutions for on- and offshore wind power

11 Anticipated unscheduled maintenance Actual unscheduled maintenance O&M Insurance Serial loss due to gear boxes Scheduled maintenance cost Operation cost Operation year Case of a claim in seventh coverage year (serial loss due to gearboxes) Comparison of O&M service concepts Various O&M service concepts are available, depending on the size of the installation and costs involved, with varying levels of impact on the project s OPEX. Conventional O&M concepts: OEM full-service agreement: provides standard O&M services, including unscheduled maintenance and availability guarantees (typically 95% operational availability). Independent service provider (ISP) contract: offers standard O&M services (e.g. basic wear & tear measures). Munich Re O&M Cover: combines ISP contract and O&M cover, optionally in conjunction with downtime (loss of revenue due to unscheduled maintenance) and our Lack-of-Wind or Wind Energy Yield Covers. Munich Re Innovative insurance solutions for on- and offshore wind power 9

12 Lack-of-Wind Don t let low-wind years lower your business viability: Meet operating costs and financing obligations and generate profits. Experience over recent decades has shown repeatedly that the strength and duration of wind in individual regions and in individual years or months can fall far short of even the most conscientious forecasts. The resulting decrease in power generation leads to reduced turnover, while operating costs, financing and return targets must still be met. To ensure that on- and offshore wind power projects do not slide into financial distress in such low-wind years, Munich Re offers covers against turnover losses. Lack-of-Wind Cover Our standard wind-only cover In our Lack-of-Wind Cover, we offer a simple risk transfer solution that protects your revenue stream in poor wind years. The cover structure is based mainly on three modelled parameters: Wind data are supplied from a weather data provider, the wind farm efficiency and the WTG power curve are taken from your project documentation. Protect your revenues with an easily accessible cover Independent of the layout and specifics of your wind farm, the revenue is calculated as a proxy, taking parametric triggers into account. Using model parameters only has a number of clear advantages: 1. The investor does not need to prove any loss or deliver any revenue statements 2. The modelled wind yield can be determined as early as one day after the event 3. Settlements can be paid out on short notice The Lack-of-Wind Cover concepts are based on a modelled turnover that is calculated from reanalysis wind data (Hindcast 1 ) at hub level (1), the specific turbines power curves (2), the wind farm s efficiency and a fixed price per megawatt-hour (3). If power generation of the wind farm falls under a predefined threshold (minimum wind power revenue), the cover cushions the impact of the loss (4). Whenever productivity falls below the red line, Munich Re steps in. 1 Hindcast: A statistical calculation determining probable past conditions (as of wind speed at a given place and time) Example: Covers for modelled output (North Sea) 11.0 m/s 6 MW Windspeed (m/s) The annual average wind speed 100 metres above the water at any given point in the North Sea fluctuates considerably. The long-term average here is just under 10 m/s, but the average in low-wind years such as 2003 may remain far below expectations. To assess a project, historical wind speed data derived from stateof-the-art models, e.g. by ECMWF or NASA, are used. 2 Wind-speed readings can be translated into energy yield figures by means of turbine-specific power curves, which make allowance for the fact that WTGs switch on only when the wind speed reaches a specified threshold value and achieve their full output as the wind speed increases. 10 Munich Re Innovative insurance solutions for on- and offshore wind power

13 It should be noted that any deviations in actual wind farm performance from the modelled power generation are not taken into account and can lead to an under- or overestimated settlement calculation. Since this cover can also be concluded for several consecutive years, it offers investors long-term protection against a loss of income due to a lack of wind. Depending on the location of the wind farm, we can also offer a combination with derivates addressing volatility in both wind strength and energy prices. You benefit in many ways from our lack-of-wind solution: operators and investors receive steady revenue from the wind farm and can concentrate on growing their business without worrying about volatility of wind even in years when it is not blowing strongly. Choose your insurance structure to meet your risk appetite The cover can be structured in different ways to enhance planning certainty and to secure profits of wind farm investments. As an instrument termed a put, our Lack-of-Wind Cover is a pure downside protection: Level of wind farm underperformance below the predefined trigger times a fixed power price. Besides the put, we also offer structures such as collars or swaps, which allow the investor to trade parts of the operation s upside to (partially) finance premiums. 1.9 GWh 360 m A wind farm s modelled annual turnover (in millions of euros) is calculated by multiplying the modelled annual energy yield with a factor reflecting the feed-in tariff or a negotiated price per GWh. In 2003, for example, the yield turned out to be 35m less than the expected value of about 310m per year (long-term average). 4 The two lines indicate the range which would be covered by a lack-of-wind policy. If the turn over falls below the red line, the cover cushions the loss up to an agreed limit (orange line). A wind farm s modelled annual energy yield (in gigawatt-hours (GWh) per year) is the sum of the hourly energy yield figures. This considers both the number of WTGs and their respective degrees of efficiency. Munich Re Innovative insurance solutions for on- and offshore wind power 11

14 Wind Energy Yield Cover (WEYC) Don t let low-wind years lower your business viability: Meet operating costs and financing obligations and generate profits. More and more wind investors are looking to close the gap between the modelled wind power revenue of a Lack-of- Wind Cover and the real performance of their wind farm. Analyses of wind farm data have shown deviations between model and reality exceeding 10% of the annual revenue stream in some cases. The main sources of uncertainty and deviation include: 1. Wind farm developer s wind survey 2. Layout, surroundings, topology and roughness of the wind farm area 3. Realized versus specified power curves of each WTG Park Availability Availability of turbines guaranteed by FSA Park Efficiency Turbine performance Wake effect Electrical losses Wind Volume Year-to-year fluctuation Wind assessment uncertainty 4. Wake effects 5. Unscheduled downtimes Insure your actual annual wind power generation Munich Re s innovative Wind Energy Yield Cover (WEYC) incorporates most of the above additional risks related to the performance and availability of wind farms. Investors are protected against an actual shortfall in revenue measured against the expected cash flow in any operation year. Once the WEYC has undercut the predefined minimum annual power generation, the WEYC pays out. Following aspects are taken into account: 1. Actual annual power generation (based on SCADA, curtailment excluded) 2. Technical non-availability of WTG (if not covered by service contracts or other insurances like OAR) 3. Fixed power prices 12 Munich Re Innovative insurance solutions for on- and offshore wind power

15 Steps toward wide-ranging protection Comprehensive coverage requires enhanced commitment on the part of the insured. For example, wind farm operation reports and SCADA data must be provided to allow analysis of the wind farm s annual performance. The WEYC risk transfer solution is based on the annual power generation (MWh) of the wind farm or portfolio and can be offered on a multi-year basis. It can be tailored to wind farms in operation as well as to greenfield projects. Premium calculations are driven by the availability and quality of wind and wind farm data. Enhance your wind farm financing The major benefit of our WEYC is a steady and predictable cash flow and higher revenue certainty. As the cover is based on actual power generation figures and operation data, the basic risk (compared to Lackof-Wind) is reduced to a minimum. This may help to substantially widen the circle of potential wind investors and to optimize financial terms. A widely secured wind farm project may lead to leveraged gains, reduced lending rates and diminished reserve accounts. If the cover is included in the financing process, the financing cost savings may even exceed the insurance premium. Select the right WEYC parameters to stabilize your annual revenues Each wind power project is unique. Munich Re has developed the WEYC with the intention of cooperating closely with each client to customize the cover to suit the client s needs and preferences. Munich Re can offer risk transfer solutions as put, swap or collar as well as insurance or reinsurance. Call on us to find the best solution for your business case Whichever form of performance cover best fits your wind project, you benefit in many ways: operators and investors receive a more secure revenue stream from the wind farm and can concentrate on growing their business without worrying about volatility of wind even in extreme low-wind years. WEYC as swap structure: The power generation (MWh) forms the basis for the compensation. Should the actual annual power generation based on SCADA data fall below the threshold, the insured would be provided with a compensation for its shortfall of revenue. A pre-agreed power price per MWh is used to calculate the settlement. In case the annual power generation exceeds the threshold, the insurer would receive a payment. The compensation is carried out on an annual basis. The WEYC contains a number of parameters that are adapted to client s requirements: 1. Structure of product: derivative (put, collar or swap) or insurance/reinsurance 2. Power generation threshold 3. Power price 4. Contract period 5. Pay-out interval 6. Contractual agreements Munich Re Innovative insurance solutions for on- and offshore wind power 13

16 Power your business Our solutions give you more planning certainty and broaden your scope for growth in a dynamic market. And we cover far more than the traditional technical risks: with our innovative cover concepts, we provide protection against financially threatening scenarios to keep you solvent and competitive, even in emergencies. Our commitment to renewable energy industries Munich Re supports the wind power industry with a broad spectrum of insurance solutions. This is just the beginning of our role in renewable energies: With Green Tech Solutions, Corporate Insurance Partner pools expert resources and know-how in the field of renewable energies. We offer various innovative insurance solutions for wind, solar, biomass and other green technologies globally. Munich Re is also making strategic investments in wind and solar farms. This combination benefits operators and project developers in two ways: the technical expertise provided by Munich Re can improve the projects performance and our clients can rely on a solid, financially strong partner with an AA rating and focus entirely on their own business. 14 Munich Re Innovative insurance solutions for on- and offshore wind power

17 Contacts We look forward to working with you. Serial Losses, O&M, EPC, WEYC Cover Lack-of-Wind, WEYC Cover Green Tech Solutions Munich Dr. Mathias Hörmann Tel.: New Re Zurich Marcel-Steffen Reif Tel.: Green Tech Solutions Munich Dr. Tobias Aigner Tel.: Munich Re Trading LLC Texas Varun Lumba Tel.: Green Tech Solutions San Francisco Álvaro Núñez Tel.: CAR, ALoP, Operational All Risks OAR Green Tech Solutions Hongkong Dr. Marc Bednarz Tel.: Corporate Insurance Partner Stephan Lämmle Tel.: Green Tech Solutions Tokyo Michio Matsuda Tel.: mmatsuda@munichre.com Global Marine Partnership Stephen E. Michna Tel smichna@munichre.com Munich Re Innovative insurance solutions for on- and offshore wind power 15

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19 2018 Münchener Rückversicherungs-Gesellschaft Königinstrasse 107, München, Germany Picture credits Cover: Getty images/tina Lorien inside front cover: Vadim Orlov/iStock/ Getty images p. 6: Getty Images/EyeEm p. 8/9: Getty Images/Cultura RF p. 16: Shutterstock.com Corporate Insurance Partner is the designation for a number of business units across different legal entities of Munich Re that provide individual solutions for medium-sized and large industrial clients. The legal entities include Munich Reinsurance Company in Munich (and its branches in Paris, Singapore, and Hong Kong), Munich Reinsurance America, Inc., and Great Lakes Insurance SE (and its branches in Aus tralia, New Zealand and Switzerland). Through our ongoing cooperation with other international units of Munich Re, we are always close to our clients. Policies are written by member companies of Munich Re. Certain products are not available in all states and jurisdictions. Some coverages may be written on a non-admitted basis. Coverages provided by surplus lines insurers are available only through licensed surplus lines brokers. Any description in this document is for general information purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any product.

20 2018 Münchener Rückversicherungs-Gesellschaft Königinstrasse 107, München, Germany