Zurich launches product solution for Public Private Partnership market
New surety bond helps contractors deliver PPP projects
Toronto, ON, November 16, 2011 – Zurich, a leading property and casualty insurance provider globally and in North America, today announced a product solution for contractors working in the fast growing Public Private Partnership (PPP) marketplace. Zurich’s Public Private Partnership Performance Bond responds to the needs of the financial community by providing financing for these projects while also delivering the well-known benefits of traditional surety bonds. The new surety product enables large construction projects to benefit from favourable financing treatment while maintaining the public policy, project completion and subcontractor payment benefits of traditional surety bonds.
"The Public Private Partnership delivery model is an important one in Canada and is gaining traction in the United States," said Dan Riordan, president of Zurich's Specialty Products group. "Our approach of offering this surety approach in conjunction with Zurich’s risk management insurance solutions helps to deliver the sophisticated infrastructure projects in a more streamlined manner."
Mike Bond, head of Surety for Zurich in North America stated, "Zurich’s new Public Private Partnership Performance Bond was developed in consultation with lenders, leading construction companies, and financial rating agencies and has several components that are designed to help meet the needs of the financial community and large contractors working in the PPP space. Because of Zurich’s S&P rating of AA-,the Public Private Partnership Performance Bond provides security that is highly valued in the PPP marketplace."
"One important aspect of this surety bond is it provides liquidity which is critically important to project lenders and financiers" explained Geoff Delisio, head of Contract Surety who led the team that developed the bond language. "Another important aspect is the built in dispute resolution procedure that will help to resolve project disputes within pre-determined timeframes. Additionally, the bond provides the traditionally important performance bond safeguards that have proven to be so valuable to owners throughout North America for over 100 years."
Public Private Partnerships are a vital construction delivery method in Canada, so this product offering will enhance Zurich’s existing strong presence in this growing and vibrant marketplace.
David Bowcott, National Director and Senior Vice President of Aon Construction & Infrastructure Solutions, a leading insurance and surety broker in Toronto, said "Zurich has taken a market leadership position with this new Public Private Partnership Performance Bond. This instrument through its responsiveness, certainty, quantum, and the smart nature of its underwriting, more than rivals the security provided by current PPP security packages."
Zurich Surety helps Canadian and internationally based customers succeed by offering meaningful surety capacity through a relationship-based approach with locally based underwriters empowered with decision-making authority. To learn more about Zurich’s Surety business, go to http://www.zurichcanada.com/can/en/targetmarkets/surety/aboutsurety.htm
For more complete financial information about the Zurich Financial Services Group and ratings for Zurich Insurance Company Ltd., access www.zurich.com.
Zurich Financial Services Group (Zurich) is a leading multi-line insurance provider with a global network of subsidiaries and offices in Europe, North America, Latin America, Asia-Pacific and the Middle East as well as other markets.
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