There are very few insurance carriers willing to “roll up their sleeves” and “dive head first” into a complex surety deal. The surety marketplace can have fierce competition and small profit margins.
Insurer Chubb has an integrated global surety division under the leadership of Stephen Haney. Chubb’s surety team brings a “can do spirit” to the marketplace, and works hard to help enable a deal, explained Craig Gortner, Senior Vice President of Commercial Surety at Chubb.
Chubb’s team of experienced professionals were recently involved in the execution of a complex surety bond for Altán Redes – a consortium backed by US-based Morgan Stanley Infrastructure Fund and the International Finance Corporation – which went on to win an international bidding process and contract to set up a nationwide shared wholesale 4G LTE telecommunications network in Mexico.
Once completed, the open access wholesale wireless network is set to cover 92.2% of Mexico and 112 million people in less than seven years, using 4G LTE technology.
Putting a surety bond in place for the project was no easy task. It required Chubb to draw on several different departments throughout its organization, within and outside of Mexico, all working towards a shared objective of finding the best possible surety solution for the project.
From the outset of its involvement, Chubb worked closely with teams assigned by Altán Redes. Achieving a successful surety outcome required clear communication and cooperation between teams in various areas including commercial, underwriting, operations, legal, finance, accounting, and global accounts.
“Chubb’s multinational identity and platform, as well as its financial strength and stability, helped accomplish this objective,” according to Gortner.
“When it comes to a complex deal for a US-based investor who wants to get involved in a project outside the US, teaming up with the right surety company and broker is very important,” Gortner told Insurance Business. “Many carriers approach surety underwriting by simply looking at the four corners of a document. They want a deal that’s already done and dusted.
“At Chubb, we’re willing to sit down, roll up our sleeves and dive head first into the details of a transaction to figure out whether or not a surety bond is feasible. Our willingness to get involved sets us apart from our competition. Our clients respect and appreciate that Chubb is willing and able to invest the time and resources to help them make their deals happen.”