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2011 Alliant Insurance Services, Inc. All rights reserved.
Alliant: The specialty insurance leader.
Renewable Energy Practice
Risk Advisory ServicesKen Caldwell
October 2011
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2011 Alliant Insurance Services, Inc. All rights reserved.
Agenda
Alliant Profile
Risk Advisory Services
Financial Partner Blackstone Group
Renewable Energy Group
Solar Insurance Solutions
Lender Advisory Services
Tribal First Program
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Corporate Profile
Premium Volume and Revenue
$4.5 billion in premiums (2010)
$436 million in revenue (2010)
Company Statistics
Founded in 1925
Headquartered in Newport Beach, California
58 offices in 23 states
1,436 employees
350 carriers represented
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Alliant Services
Corporate and Project Risk Advisory Services
Brokerage for property and casualty, workers
compensation, employee benefits, surety, and
financial services Benefits consulting Brokerage
Underwriting for proprietary programs
Claims and risk control services
Human resources consulting Third-party administration
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Financial Partner: The Blackstone
Group
Blackstone was founded in 1987
Blackstone currently manages
private equity assets of more
than $24.3 billion
Currently managing its fifthgeneral private equity fund,
Blackstone Capital V L.P.
partners, which represents
approximately $20 billion
Since inception, achieved gross
IRR on private equity
investments of 30.8%,
representing a return of 2.6
times invested capital
Relevant Blackstone financial services acquisitions ($mm)
Overview
http://www.arielre.com/http://www.aspen.bm/http://www.axiscapital.com/http://www.euronext.com/ -
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Alliant Renewable Energy Group
The Alliant Renewable Energy Group is a dedicated practicethat developed a network of dedicated renewable energy
companies who are experts in the provision of risk solutions
for Solar Power, Wind Power, BioEnergy and a variety of
other sources of alternative energy operations
Alliant draws on years of energy risk management
experience and knowledge that is unique to risks associated
with alternative energy companies
Our Renewable Energy Group provides solutions that range
from conventional property, casualty, and product coverages
to non-traditional strategies to address the need of
renewable energy risks
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Renewable Energy Group Products
Insurance Products:
General Liability
Commercial Auto
Workers Compensation
Excess Liability
Professional Liability
Builders Risk
Inland Marine /
Equipment Floaters
Pollution Liability
Specialty Products:
Solar Performance
Guarantee Insurance
Solar Panel Warranty
Products Liability forManufacturers
Wind Power and Wind
Energy
Geothermal Energy
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Options for Solar Panel WarrantiesCoverage Detail Option 1 Option 2
Est. Annual Production $100,000,000 $100,000,000
Policy Period Production $25k per Occurence / 500,000Policy Agg. Deductible* 2%-3% of Turnover Deductible(~$2m-$3m)Quota Share Deductible 10% Quota Share Deductible 20% Quota Share Deductible
Policy Term 25 years 25 years
Coverage Detail Coverage Effective Day 1 No Coverage for first 2 years
Unplanned Degradation Covered Covered
Defective ComponentsDesign Serial Defect
CoveredCovered
Not CoveredNot Covered
Premium 20-25% of Limits purchased ** Policy Period and AnnualAggregate deductibles areconsidered.
Based on 2%-3% of AnnualProduction
* $10,000,000 Limit cost approx$2m-$2.5m for 25 year term.
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Guarantees the Output of the Solar Energy Project
Policy is Non-Cancellable
Policy Survives Bankruptcy and is Transferable
Policy Covers Loss of Business Revenue and TaxCredits
Flexible Self Insured Retention (SIR) structure
Covers Costs Associated with Non-Performing or
Underperforming Systems
Lender Geared Policy Language written on A.M.
Best A XV Paper
Solar Project Wrap-Up Insurance
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Solar Project Wrap-Up Insurance (Cont)
Product and Serial Defect in PV Modules Inverters Racking Systems Trackers
Loss of Revenue PPA SRECs
Design Defect
Yes Installation and Construction Defect
Power Output
Installation and Construction Defect
Lack of Sun
Yes
Yes
Yes
Yes*
Yes
Yes
*Lack of suncoverage appliesin various casesonly
2011 PowerGuard Specialty Insurance
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Debt Lenders Due Diligence Services
Independent Review to protect lender investment
Private Equity Insurance Due Diligence
Public Private Partnership Due Diligence Energy Sector (Solar, Wind)
Infrastructure Sector (Roads, Bridges, Tunnels)
50% Market Share of Due Diligence
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Tribal First Program(Potential Tribal Solar
Ventures)
The Tribal First Insurance Program is uniquely crafted for
the risk and exposures faced by tribal entities
The program has grown to over 300 Tribal clients,
representation over 125 different Native American Tribes.
Tribal Insurance Programs consists of primarily General
Liability, Property, and Workers Compensation insurancecoverages
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2011 Alliant Insurance Services, Inc. All rights reserved.
Alliant: The specialty insurance leader.