INTRODUCING JLT MINING IN COOPERATION WITH GrECo JLT GROUP
INTRODUCINGJLT MINING IN COOPERATION WITH GrECo JLT GROUP
INTRODUCING JLT MINING
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JLT PROPOSAL
Front Cover Image: The smelter shop of the Nadezhdinsky non-ferrous metal works under Norilsk Nickel Co, Russia.
ABOUT JLT MINING
The mining industry is facing one of the most marginal operating environments seen in a decade. The need to deliver robust growth in the face of commodity pricing volatility, to maximise project efficiency, to become leaner, and to outmanoeuvre the competition means partnering with the right broker is paramount.
JLT Mining is an established team with a strong book of business across a range of commodities
and risks. We believe that it is our commitment to our clients’ interests that sets us apart.
Working with JLT Mining is a partnership. Our cross-class expertise stems from long-term relationships
with miners, contractors, traders, and mining financiers. We understand the project lifestyle from start to
finish, and know where we can add value. We deliver products and services that provide a competitive
advantage – particularly during hard times. This means that our clients stay with us because of the value
we add, not just because we achieve competitive premium rates.
When it comes to risk transfer, we combine quality local broking with global reach by leveraging JLT
Group’s network of 10,000 specialists across 135 countries. Our market-leading claims advocacy
has collected nearly USD4.65bn for the natural resources sector since 2010, while our in-house risk
consultancy practices help clients identify, understand, and mitigate risk more effectively.
We work hard to find robust solutions that pre-empt our clients’ needs and which anticipate the
changing state of the mining industry. This enables JLT Mining clients to enhance their resilience
and to continually secure new opportunities.
Fastest growing mining book in the international
market
Strong relationships with all specialist mining insurance markets around the world
Experience in a range of commodities from exploration through
to processing
Local service combined with global expertise
Access to specialist Mining Engineers and Mining Loss Adjusters with global reach
10 mining hubs across the world from Australia to
the USA
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Czech Republic
Croatia
GrECo JLT is the leading specialist insurance broker in Eastern Europe and the CIS. They are headquartered in Austria with offices in 15 further territories and nearly 800 employees. As an associated company and exclusive JLT International Network Partner since 2010, JLT and GrECo JLT are closely aligned in specialist insurance placement and strategy.
GrECo JLT are the largest insurance broker in Austria and placed approximately EUR 600,000,000 premium into the market in 2015.
GrECo JLT is a key partner in the JLT International Network which represents JLT’s global account platform in over 135 countries. This makes it one of the largest insurance and employee benefits broker networks in the world.
GRECO JLT GROUP IN EUROPE
Serbia
Slovakia
Slovenia
Ukraine
Turkey
Russia
Romania
Estonia
Hungary
Poland
Bulgaria
Lithuania
Austria
Kazakhstan
JLT MINING CLIENTS
Mining companies(Mining majors, Mid-tier miners, Junior miners)
Financiers(Investment Banks,
Hedge Funds)Contractors & Engineers
Traders
Private EquityHouses
• Bank of Tokyo-Mitsubishi
• BNP Paribas
• Credit Suisse
• HSBC
• ING
• Mizuho
• Rand Merchant Bank
• US EXIM
• West LB
• Glencore
• Louis Dreyfus Commodities
• Noble Group
• Barminco
• CIMIC Group
• Imdex
• Agnico Eagle
• Antamina
• Antofagasta Minerals
• Codelco
• Collahuasi
• ENAMI
• ENRC
• Impala Platinum
• Ivanhoe Mines
• Karara Mining
• Minera Carola
• Newmont Mining Corporation
• Randgold Resources
• Rio Tinto Oyu Tolgoi
• Teck Resources
We work with corporations across the following diverse industry sectors:
JLT Mining has been working with our market leading Financial Institutions team to develop new products for private equity investors as they move into the mining space.
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JLT INSURANCE PRODUCTS
JLT SERVICES
MINE LIFE CYCLE
EXPLORATION& EVALUATION
Construction Third Party Liability
Construction Material Damage / Advance Business Interruption
Project Specific Workers’ Compensation
Project Specific Professional Indemnity
Project Specific Income Protection
Construction / Mobile Plant and Equipment
Workers’ Compensation
Kidnap, Ransom and Extortion
Income Protection, Life and Health
Environmental Impairment
Corporate Recoveries
Project Specific Professional Indemnity
Construction / Mobile Plant and Equipment
Workers’ Compensation
Political Risks and Political Violence
Terrorism and Sabotage
Lenders’ PRI
Directors’ and Officers’ Liability (D&O)
Construction Third Party Liability
Construction Material Damage / Advance Business Interruption
Construction Marine Cargo / Advance Business Interruption
Project Specific Workers’ Compensation
Project Specific Professional Indemnity
Project Specific Income Protection
Environmental Impairment
Construction / Mobile Plant and Equipment
Workers’ Compensation
Political Risks and Political Violence
Terrorism and Sabotage
Kidnap, Ransom and Extortion
Directors’ and Officers’ Liability (D&O)
Income Protection, Life and Health
Surety
Operational Third Party Liability
Operational Material Damage / Business Interruption
Environmental Impairment
Construction / Mobile Plant and Equipment
Workers’ Compensation
Political Risks and Political Violence
Terrorism and Sabotage
Kidnap, Ransom and Extortion
Directors’ and Officers’ Liability (D&O)
Income Protection, Life and Health
Reclamation Bonds
Operational Third Party Liability
Operational Material Damage / Business Interruption
Marine Charterers’ Liability
Environmental Impairment
Construction / Mobile Plant and Equipment
Workers’ Compensation
Political Risks and Political Violence
Terrorism and Sabotage
Kidnap, Ransom and Extortion
Directors’ and Officers’ Liability (D&O)
Income Protection, Life and Health
Specie for Precious Minerals and Metals
Cargo and Stock Throughput
Third Party Liability
Material Damage
Mergers & Acquistions Indemnity
Long Term D&O Liability Run-Off
Construction / Mobile Plant and Equipment
Workers’ Compensation
Income Protection, Life and Health
Reclamation Bonds
CARE &MAINTENANCE /
CLOSUREOPERATIONS
SITESELECTION /
CONSTRUCTION
PRODUCTTO MARKET
Exploration Contract Reviews
Insurance Program Reviews
Country Risk Reports
Country Insurances Compliance Advice
Contract Insurance Clause Design
Risk Workshop
Design Risk Engineering
Insurance Program Design
Indicative Premium Calculations
Risk Consultancy
Financiers’ Due Dilligence
Fire Suppression Design Advice
Project Insurance Design
Construction Contract Reviews
Construction Risk Workshops
Advance Business Interruption Review
Site Surveys Injury Management
Contractor Enrolment Systems
Ongoing Contract Reviews
Operational Risk Workshops
Independent Risk Engineering Service and Valuation
Business Interruption Review
Insurance Program Design
Contract Reviews
Customer and Supplier Exposure Reviews
Claims Run-off Management
Care and Maintenance Plan Design
Valuation Services
PROJECTFINANCE
INTRODUCING JLT MINING
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OUR SERVICESJLT Mining’s Risk Consulting & Engineering team works with
clients across the project lifecycle, from pre-exploration through
to mine closure, and from a pre and post loss perspective. Our
services can be broken down into four categories:
Review: Analysing, modelling and assessing the strategies, procedures and safeguards that the company has in place both from a project and corporate risk perspective.
• Mining and industrial/process risk engineering reviews,
inspections and audits
• Risk assessment & analysis, and insurable risk reviews on a
cross-risk basis
• Resilience reviews (including Business Interruption,
Non-Damage Business Interruption, and Supply Chain
assessments)
• PML Modelling for a variety of risk exposures, including
natural hazards, environmental, and political violence.
• Mergers & Acquisition (M&A) risk reviews
• Underwriting surveys
• Due Diligence of project partners, and counterparty
inspections
• JLT Forensic – Specialist accounting with insurance
experience
• Reinsurance technical reviews
• Captive feasibility studies (plus domicile, set-up and
management if required).
Restructure: Designing new strategies for identifying and mitigating risk, including risk transfer programme design.
• Enterprise Risk Management strategy redesigns and
implementation
• Business Process/Change Improvement
• JLT Valuations – Asset reviews and labour / material / plant
& equipment cost analysis to ascertain correct asset values,
particularly during commodity price downturns
• Business Continuity Management/Crisis Management
preparation and rehearsals
• Managing Construction risk transfers to Operational risk
management
• Strategy development workshops and strategy reviews
• Risk management technology (personnel and security risks
in particular)
• Renewal data collection, analysis and administration
• Pre-loss claims consulting and claims certainty exercises.
React: Specific services to support the company in the event of a loss or if the company becomes distressed.
• Engagement and liaison with third parties ranging from
security consultants, to environmental disaster specialists,
claims consultants and insurers
• Crisis management support at headquarters
• Collateral lifelines to unlock excess collateral posted
to insurers
• JLT Forensic – Accounting specialists to manage
contentious BI claims and post loss policy redesign
• Insurance product redesign to reflect distress scenarios,
such as workforce cuts, mothballing of sites, and debt
restructuring.
Recover: Managing the aftermath of an incident or loss, and enabling the company to get back to business as soon as possible.
• PR/Reputational risk management from an internal and
external perspective
• Risk management workshops/facilitation
• Worker rehabilitation post-incident using JLT’s unique
‘Recovre’ service
• Executive reporting and post crisis project management.
In the face of heightened volatility, organisational resilience is no longer simply the domain of risk managers.
Company boards and C-Suites are now more tuned-in to risk, and these
internal stakeholders are now demanding to know what measures are in
place to identify, mitigate and transfer risks. External stakeholders – lenders,
shareholders, regulators – also are holding companies to account. Risk
managers must in many cases act as educators; helping stakeholders
understand a broad range of risks which are in a constant state of flux.
As mining companies continue to confront a range of challenges, it is vital
to understand how to proactively manage an evolving risk profile, albeit with
fewer resources. In respect of risk transfer, part of the challenge for mining
companies is how to differentiate their risks from their peers’, in order to
secure preferential premium rates and coverage enhancements.
OUR CAPABILITIES:It is JLT Mining’s objective to be the risk partner
of choice. We utilise our in-house Risk Consulting & Engineering team to help
our clients manage a range of construction, property, liability, and security risks
which reinforces risk management strategy. The output of our work also enables
JLT Mining’s brokers to achieve optimal results from the insurance markets.
The output of our services is two-fold:
• We help our clients to identify, understand and mitigate risk at project and
portfolio level, thereby minimising the frequency and severity of losses
across a range of risks.
• We use the results of our consulting and the implementation of our
recommendations to improve the quality of the risk presented to the
insurance markets. We work with risk management teams to manage
insurer risk recommendations and to set your risk apart through more
meaningful underwriting submissions.
Our consultants have significant industry experience, with a number of them
having headed the risk engineering and technical risk teams at leading mining
companies, before transitioning into the insurance industry.
RISK CONSULTING & ENGINEERING
JLT Mining’s Risk Consulting & Engineering team can provide superior risk insight to protect and enhance your business, and we look forward to the opportunity to help.
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INTRODUCING JLT MINING
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Despite some significant mining claims, soft market conditions prevail on account of excess capacity and this is exerting
downward pressure on premium rates. JLT Mining continues to outperform our competitors to succeed in securing
aggressive rate reductions across our mining portfolio.
Since 2011 we have achieved a cumulative 61% rate reduction across our mining book for Property and Business
Interruption insurance. Meanwhile, our largest competitors have secured only cumulative rate reductions of 28% for
the same period. We continue to deliver premium reductions year on year for our clients, even in the event of a claim
occuring, whilst maintaining close relationships with insurers.
OUR PERFORMANCE
COMPOUND RATE REDUCTION (%) - JLT VERSUS MARSH
-10
-20
-30
-40
-50
0
-60
-70
2011
2011
2012 2013 2014 2015
250
200
150
100
50
0
Compound JLT Rate Reduction (%)
Commodity Metal Price Index
2012 2013 2014 2015
Rat
e R
educ
tion
(%)
Com
mod
ity Metal P
rice Index
Cop
per P
rice (US
D p
er metric ton)
Com
pou
nd J
LT P
rem
ium
Red
uctio
n (%
)
Source: JLT Mining Data and IndexMundi
Source: JLT Mining Data and IndexMundi
Source: JLT Mining Data and Marsh Mid Year Mining Market Update
Source: JLT Mining Data
Com
pou
nd R
ate
Red
uctio
n (%
)
-10
-20
-30
-40
-50
0
-60
-70
2009 2010 2011 2012
JLT Average for US quoted brokers*
5%
7%
3.4%
1.3%
-1.5%
7% 7%
2013
3.8%
8.5%
4.3%
2014
3.8%
6%
Compound JLT Premium Reduction (%)
Copper Price (USD) per metric ton4,000
6,000
2,000
02012 2013 2014 2015
-10
-20
-30
-40
-50
0
-60
-70
Compound JLT Rate Reduction (%)
Compound Marsh Rate Reduction (%)
2011 2012 2013 2014 2015
0
3,000,000,000
6,000,000,000
9,000,000,000
4,000,000
8,000,000
12,000,000
16,000,000
Values (USD)
Premium (USD)Valu
es (U
SD
) Prem
ium (U
SD
)
8,000
10,000
12,000
-61%
-28%
Compound JLT Rate Reduction (%)
Commodity Metal Price Index (Index Number)
International Coal Price (USD/mt)
-10
-20
-30
-40
-50
0
-60
-70
2011 2012 2013 2014 2015
250
100
200
150
50
0
Com
pou
nd J
LT R
ate
Red
uctio
n (%
)
Source: JLT Mining Data and IndexMundi
COMPOUND JLT RATE REDUCTION (%), COMMODITY METAL PRICE INDEX AND IRON ORE PRICES
How we differ:
• In-house: We have not outsourced our claims specialists. The claims team sits alongside our
brokers, enabling us to perform as one unified global service team for our clients.
• Market intelligence: Our claims team gather market intelligence on claims and insurer performance.
This means our brokers specifically select markets according to their claims performance record,
and our clients can benefit from peer group intelligence.
• Training: We offer claims preparation training to our clients, helping improve preparedness.
• Relationships: We maintain strong relationships with the major leaders, loss adjusters and lawyers
to help expedite the claims process and to ensure we remain market-leading.
• Leverage: Our claims team has the weight of the JLT Group brand behind it. We maintain
relationships at a senior level with all insurance markets which gives our teams clout for large
contentious claims.
• Best Practice: We value best practice and were a founding member of the insurance industry’s
Mining Insurance Group (MIG).
JLT Mining has access to a team of highly experienced claims professionals who specialise in handling, managing and negotiating claims for the mining, energy, power, and global commodity trading industries. Our clients must have confidence that the insurance policies we arrange for them are expertly structured, are written by experienced insurers with strong claims track records, and, in the event of a loss, that their broker will handle the claim efficiently, and with the optimal results.
CLAIMS CAPABILITIES
100claims specialists in London dealing with the largest and most complex claims
USD 9,315,813,795Total value of claims collected by London team since 2010
USD 4,120,996,212Total value of claims collected by London team since 2010 for clients in commodity markets (oil & gas, mining and power)
75,665 Total number of claims handled by London team in the past five years
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JLT is one of the world’s leading providers of insurance, reinsurance and employee benefits related advice, brokerage and associated services. Our client proposition is built upon our deep specialist knowledge, client advocacy, tailored advice and service excellence. We place our clients first, champion independent thinking and expect to be judged on the results we deliver. JLT owns 115 offices in 40 territories with some 10,600 employees, supported by the JLT International Network, enabling us to offer risk management and employee benefit solutions in 135 countries.
ABOUT JLT GROUP
Risk & Insurance
• Advice & Consultancy
• Brokerage, placement and claims
• Access to specialist insurance products %
Employee Benefits
• Pension and retirement services
• Health and benefits investment services
• Wealth management
75%
25%
OVER 10,600 PEOPLE
REVENUES OF
USD 1.8BN
UNDERLYING PROFIT BEFORE TAX
USD 260M
MARKET CAPITALISATION
USD 2.7BN
PREMIUMS PLACED
USD 14.3BN
OVER 115 OFFICES
IN 40 COUNTRIES
15
JLT Specialty Limited
The St Botolph Building 138 Houndsditch London EC3A 7AWTel +44 (0)20 7528 4000Fax +44 (0)20 7528 4500www.jltspecialty.com
Lloyd’s Broker. Authorised and regulated by the Financial Conduct Authority. A member of the Jardine Lloyd Thompson Group. Registered Office: The St Botolph Building, 138 Houndsditch, London EC3A 7AW. Registered in England No. 01536540. VAT No. 244 2321 96.
© August 2016 • 271755
CONTACTS
AUSTRIA ZVIADI VARDOSANIDZE Head of Energy Specialty Tel: +43 (5) 0404 134 Email: [email protected] KAZAKHSTAN UWE LENHARDT General Director Tel: +7 (727) 3116736 Email: [email protected] POLAND PAWEL PALUSZYNSKI General ManagerTel: +48 22 39 33 400 Email: [email protected] RUSSIA ANDREY PANOV Managing Director Tel: +7 (495) 645 4531 Email: [email protected] TURKEY TOLGA TOKMAK Deputy General Manager Tel: +90 532 645 77 70 Email: [email protected]