4. RISK FACTORS, INTERNAL CONTROL AND INSURANCE 4.3 Insurance In order to offset the financial consequences of a risk, the Group has taken out several insurance policies. The main policies cover both property damage and operating losses, and civil liability. Specific policies have also been put in place for the Group’s newly-developed businesses. Lastly, the Group has also taken out a policy covering its Senior Managers’ civil liability, as well as “pecuniary losses”. Insurance programs are taken out with leading international insurers and reinsurers. The Group believes that these are appropriate to the potential risks related to its businesses. Nevertheless, the Group cannot guarantee, in the event of a claim, in particular of an environmental nature, that all of the financial consequences would be covered by the insurers. 4.3.1 Rubis Énergie (distribution/support and services) The Group’s main global programs have been renewed with leading insurers. 4.3.1.1 PROPERTY DAMAGE AND OPERATING LOSSES The Group has renewed its previously established coverage with the same insurer. The Damages guarantee in the event of fire and similar events, including terrorist attacks in France and Spain, provides compensation in the amounts of €130 million per claim for terminals and €10 million per claim for gas stations, with this ceiling having been calculated on the basis of the maximal amount of possible loss. Operating losses are covered in a total amount of €9.6 million (with a combined indemnity limit for operating losses and direct damage); this only covers the Norgal and Vitogaz Madagascar subsidiaries, for which any disruption to business could be problematic. Due to local legislation, subsidiaries operating in Africa, Bermuda and Switzerland have taken out Property Damage insurance with local firms as the primary insurer, with the Group’s master policy filling any gap. A specific Damages program for the Caribbean zone (excluding DFA) has been renewed, with a ceiling of $40 million and specific sub-limits for natural disasters and gas stations, with the Group’s master policy filling any gap. Sara has not been included in the Group program due to its activity. The policy was renegotiated with improved guarantees; liability is capped at €170 million. The Damages policies taken out by Eres NV and each of its subsidiaries have been maintained. 4.3.1.2 CIVIL LIABILITY The master program covers Operations civil liability and Post-delivery civil liability. The guarantee is €150 million per claim, all damages combined. On January 1, 2016, Sara and SRPP were included in this master program, which was renewed with the same company with a number of improvements. Due to local legislation, the subsidiaries located in Africa, Bermuda, Switzerland and the Caribbean (excluding DFA) have taken out a frontline civil liability policy with a local insurer. The master program is used to fill any gaps resulting from caps imposed under local policies. The master Environmental Damage liability policy has been renewed with the same insurer; SRPP and Djibouti are now included. Compensation is capped at €20 million per claim, covering environmental liability, damage to biodiversity and clean-up costs. Sara, due to its refining operations, is the subject of specific coverage outside the master program. It has negotiated 2 lines of guarantees in a total amount of €50 million. Global Aviation liability cover taken out by the Group for its subsidiaries distributing aviation fuel has been renewed in the same amount of $1 billion for risks and damage to third parties during refueling. Eres’ activity has not been included in the master civil liability program; its existing policies have been maintained. 4.3.1.3 SHIPPING Charterer liability insurance has been taken out with a P&I Club, member of the International Group, with guarantees of $500 million and $1 billion for pollution. Sara’s activity has been included in our master policy. Master Cargo insurance has been renewed to cover damage to merchandise capped at a maximal amount of $30 million, including Sara. Eres NV has retained its cargo insurance. This subsidiary will be included in the master programs in 2017. The 5 ship-owning companies acquired in 2015 are covered by a P&I Club, belonging to the International Group, for their civil liability, and by insurers in the UK market for hull and machinery damage. 62 RUBIS /// 2016 REGISTRATION DOCUMENT
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