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16th of May 2012

Oil drilling company looking to own captive

Vicky Beckett 16/12/2011

San Antonio Internacional, a Latin American onshore drilling and well services provider, is looking to own a captive.
 
The company, with an annual premium of over $1.5bn, is looking to purchase business interruption and erection all risks.
 
Vanessa Neuman, the firm’s risk manager, spoke to LatAm Insurance Review, a sister publication of Captive Review.
 
Neuman said: “As a first step, we are mapping the risks we face in all areas of the company to help us improve our risk management.
 
“With better control over the risks, we can move towards a self-insured program and establish a captive.
 
“The decision to purchase business interruption cover has been driven by a growing awareness of the potential knock-on effect of physical damage to the firm’s drilling and workover rigs.”

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Bendol 22/02/2012 6:24am

prob senutdt quits and receives $8000, thus costing the company $7950, is 0.003.prob senutdt doesn't quit, thereby contributing $50 to company income, is 0.997Therefore expected receipt for company = $(0.003*(-7950) + 0.997*50) = $(49.85 23.85) = $26

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