BP owns its key insurance company, Jupiter Insurance LTD, according to the company’s SEC filings.
Jupiter Insurance LTD. insures the company’s international oil and gas assets from a base in Guernsey, the offshore UK tax haven. It is likely located in a special purpose vehicle (SPV), which prevents BP from having to make public the firm’s assets or liabilities.
Jupiter Insurance retains its BP liabilities, not re-insuring them through another firm or selling them off to further buyers. BP may be forced to pay some of the insurance payments on its own facilities, if it has not prepared Jupiter Insurance to make such payouts.
The company does have to have public insurance on some of its properties. This insurance is suspected to be through Lloyds of London, and be related to loss of property and liability claims.
But through all these less-than-public insurance arrangements, BP’s stock is tanking. Maybe the market knows something about BP’s insurance liabilities its filings don’t reveal?
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