- Deal aligns with Bapco Energies’ transformation and centralization efforts.
- Development of a centralized risk framework and tailored insurance coverage.
- Insurance Captive will enable broader coverage options across Bapco Energies.
Manama, Bahrain, 22 January 2024: Bapco Energies, the integrated energy company leading the energy transition in the Kingdom of Bahrain, has signed a strategic agreement with ACE Gallagher, a leading insurance company to establish and manage an ‘Insurance Captive’ tailored for Bapco Energies.
Bapco Energies sought proposals from five of the world's leading captive managers. After a rigorous selection process overseen by the Bahrain Tender Board, ACE Gallagher was appointed as the lead captive manager after securing the highest combined technical and commercial score.
This agreement aligns with Bapco Energies’ centralization efforts by consolidating the insurance portfolio across the Group. This strategic approach facilitates the adoption of a unified risk management strategy providing a foundation for long-term sustainability. Furthermore, It reinforces the Company's resilience, stability, and adaptability to evolving insurance-related needs.
The insurance captive assumes particular significance amid the prevailing challenges in the insurance market, as it empowers Bapco Energies to assert greater control over its insurance portfolio, bolster its negotiating ability with commercial insurance markets, and optimize the overall insurance cost for the Group.
The signing ceremony, held today at Bapco Energies HQ in Manama, Bahrain, saw senior representatives from both companies in attendance. The agreement was formalized between Mr. Mark Thomas, Group Chief Executive Officer of Bapco Energies, and Ms. Yolla El Khoury, CEO of ACE Gallagher Group.
Mr. Mark Thomas, Group CEO of Bapco Energies, commented: "We have seen a global surge in the use of captive insurers as a critical risk management tool amidst the challenges of an increasingly hardening insurance market exacerbated by higher rates. We expect this upward trajectory to persist throughout this decade. As such, we are delighted to have secured this strategic partnership with ACE Gallagher. Their expertise will be instrumental in strengthening our risk management framework and enhancing our overarching initiatives in centralization and operational efficiency."
From her side, ACE Gallagher’s CEO, Ms. Yolla El Khoury, said: “We are thrilled to join forces with Bapco Energies as we provide expert guidance in the area of Captive Insurance. This strategic initiative not only demonstrates Bapco Energies’ unwavering confidence in their risk management practices but also paves the way for an enhanced risk profile. Our team of highly skilled professionals, drawn from both local and regional talent pools, is fully committed to delivering unparalleled advice that will elevate Bapco Energies’ risk management practices through innovative solutions like captive insurance. With utmost certainty, we anticipate achieving Bapco Energies’ goals of consolidating insurance policies, leveraging economies of scale, and generating revenue by retaining a portion of their risk.”
