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Vice Chairman
John L. Wortham & Son, Houston
richard.blades@worthaminsurance.com

An Oil Man

One risk manager said that Blades made a huge save in a very large loss due to Hurricane Katrina, almost $300 million, that was in danger of coming apart like a New Orleans levee.

"Richard played a key role in helping to bridge the parties--us and the insurers, commercial markets and the energy industry--to come to a final agreement on a very difficult loss-claim situation."

After that thorny situation was resolved, there was no time to rest for either Blades or his client.

"With the Katrina and Rita losses that we had, we have had very challenging renewals for onshore and offshore property coverage," said the risk manager. "At our recent renewal in April 2008, Richard set an aggressive goal and hit the target."

And while those were big challenges, Blades also handled unconventional resource issues last year.

"Due to his outstanding relationship with insurers, Richard was able to complete a $1 billion-plus placement [in the oil patch] when it appeared the market-capacity play would fall short," said a client.

"Richard developed an innovative structure to share a large limit excess of $1 billion for two seemingly unrelated but in the end very similar risks in the U.S. and internationally." the client said. "Savings were nearly a half-million dollars."

Executive Vice President
Willis Global Energy, Calgary

A Northern Wind

Service providers become Power Broker^TM winners by being rain-makers, but that usually comes in the realms of finding capacity for placement, keeping premiums reasonable and occasionally handling unusual manuscripts.

Davenport earned his laurels by doing all of that and by taking an active role in helping clients grow their business. In one case, an energy firm sought to take equity positions in U.S. assets.

"Richard has proven his value to us, through a period of rapid growth of our company and our expansion into the U.S. market," said a risk manager.

"He has been very consistent in delivering solutions to the issues that arose out of our acquisitions of U.S. assets, significant offshore and construction projects and international exploration over the past year. Through the recent market volatility, he has proven to be a consistent source of information and solutions. He is extremely candid in his opinions and has a level of integrity that is refreshing to find in any industry."

Those acquisitions were tricky because information about the assets was limited, as was the timeframe to complete them.

To further complicate matters, Davenport discovered that the underwriting community had pre-conceived notions about the assets that had a great effect on both coverage and pricing. Davenport's ability to get those risks covered at a manageable premium enabled the rest of the transaction to be completed.

Managing Director
Aon, St. Louis
jim_gloriod@ars.aon.com

Making Divorce Work

Separations are much more complicated than mergers. When a broker wins a new account, or when a company taps a new underwriter, meetings are all smiles and everyone is magnanimous. But when the time comes to go separate ways, meetings can be tensely cordial, and everyone is on guard, even when the separation is amicable.

And so it was when a huge energy firm found it had grown beyond the capabilities of one of its main insurers. Gloriod, the "master problem solver," as the risk manager describes him, played the delicate role of mediator in this divorce.

"We were unwinding a 40-year relationship," said the client. "We had to address about 200 insured entities, retroactive programs and deductibles. These were very complex calculations even with an amicable split. Jim rolled up his sleeves and got this done."

This year Gloriod also showed his expertise in several situations where carriers were seeking to liquidate select programs. "

How do you value such longstanding contracts?" said a client. "A typical broker would shy away from this kind of thing, or would hand it off to staff. Jim did not know all the details when he started on this, but by the time he was finished, he did not need any staff support."

Clients were most impressed with Gloriod's ability to accomplish those unwindings and liquidations while at the same time renewing continuing coverage.

Senior Vice President
McGriff, Seibels and Williams, Houston
bhead@mcgriff.com

An International Brain

Head and her team coordinated the renewal D&O placement for a large oilfield services firm with multiple outstanding claims and a prior run-off policy.

The renewal involved a new primary policy form that had to be carefully tailored to ensure continuity with the prior run-off policy, alternative options for various incumbent insurance layers and the addition of an international insurance program. It is exactly that facility with international coverage and complexity for which Head and her team get kudos from clients.

"Bain and Judith McElya have to be mentioned together because their teamwork is what gives me complete confidence that my D&O issues are addressed in a comprehensive fashion," said one risk manager for a major company.

"As D&O issues are constantly evolving and as international issues emerge with more complexity, two heads are definitely better than one," the risk manager said. "Bain and Judith sell their team approach very effectively. This year has mostly been about basic blocking and tackling but Bain and her team were instrumental in helping with an acquisition we completed."

Clients are wowed by her depth of understanding in forms, especially in international markets. Although there have not been a huge number of placements this year, some important initial coverage was secured. Clients report they are advancing international plans knowing that coverage can be obtained through Head.

Senior Vice President
Beecher Carlson, Boston
gkerrigan@beechercarlson.com

A Wizard at Thirty-Three

In the middle of all the high-level high-stakes changes among carriers and clients this year, it is well to remember that not every risk manager or broker is a grizzled veteran with the scars to prove it.

There are bright and accomplished professionals who are new to an industry or to a company.

"I am a novice when it comes to working for an oil company," said one such risk manager. That manager has a substantial track record in other business sectors, and was brought into the energy industry based on that pedigree. In Kerrigan, who is all of 33, this client found a kindred spirit.

"She was also new to this sector, so we both faced a very steep learning curve," said the client.

Despite being new to the sector, "Geraldine was very thorough and very patient in explaining the rules and regulations for this industry," the client added. "She was able to achieve significant cost savings for my firm, and also get for us the best coverage."

As broker and client were just coming up to speed, one of the company's major carriers was hit with a major financial setback, as were several underwriters this year.

"We were just renewing our D&O during the middle of the carrier's problems," said the risk manager. "Our costs went up, but not as much as they would have if Geraldine had not been there for us."

Managing Director
John L. Wortham & Son, Houston
michael.ruehman@worthaminsurance.com

"Off the Scale" Abilities

When it comes to serving energy clients when it matters most--during a catastrophe--Michael Ruehman exceeds expectations.

"I remember, following Hurricane Ike, on my first day back at work, senior management was asked to report to our engineering offices five miles from the corporate office because corporate was without power," one risk manager recalls.

"I reported at 7:30 a.m. and went straight to a management staff meeting that let out at approximately 8:30. When I walked out of the conference room, Mike was standing in the hallway waiting for me," the risk manager said.

"I had not called him or made contact with him in any way. He had somehow tracked me down and was there to help any way he could, without even having been asked. We proceeded to a little cubicle that I would work out of for several days until power was restored, and Mike stayed the entire day, sitting in an uncomfortable little aluminum chair, helping me with calls to adjusters and our London brokers and generally helping me get a $100 million claim set up."

Clients credit Ruehman with being "smart, level headed, a tremendous negotiator, liked and respected by both clients and underwriters, innovative and always the consummate professional."

One veteran risk manager lauds his industry expertise. "Mike's knowledge of the offshore oil/gas drilling industry is comprehensive, and his abilities are off the scale."

Aon
Managing Director/Senior Vice President
Houston