Lockton completes acquisition of leading turkish broker Omni Sigorta

The European Union’s Emissions Trading System (EU ETS) was extended to cover emissions from shipping as of 1^st January 2024.

The EU ETS is limited by a 'cap' on the number of emission allowances. Within the cap, companies receive or buy emission allowances, which they can trade as needed. The cap decreases every year, ensuring that total emissions fall.

Each allowance gives the holder the right to emit:

One tonne of carbon dioxide (CO2), or;
The equivalent amount of other powerful greenhouse gases, nitrous oxide (N2O) and perfluorocarbons (PFCs).
The price of one ton of CO2 allowance under the EU ETS has fluctuated between EUR 60 and almost EUR 100 in the past two years. The total cost of emissions will vary based on the cost of the allowance at the time of purchase, the vessel’s emissions profile and the total volume of voyages performed within the EU ETS area. The below is for illustration purposes:
~A 30.000 GT passenger ship has total emissions of 20.000 tonnes in a reporting year, of which 9.000 are within the EU, 7.000 at berth within the EU and 4.000 are between the EU and an outside port. The average price of the allowance is EUR 75 per tonne. The total cost would be as follows:
~~9.000 * EUR 75 = EUR 675.000
~~7.000 * EUR 75 = EUR 525.000
~~4.000 * EUR 75 * 50% = EUR 150.000
~~Total = EUR 1.350.000 (of which 40% is payable in 2024)
For 2024, a 60% rebate is admitted to the vessels involved. However, this is reduced to 30% in 2025, before payment is due for 100% with effect from 2026.
Emissions reporting is done for each individual ship, where the ship submits their data to a verifier (such as a class society) which in turns allows the shipowner to issue a verified company emissions report. This report is then submitted to the administering authority, and it is this data that informs what emission allowances need to be surrendered to the authority.
The sanctions for non- compliance are severe, and in the case of a ship that has failed to comply with the monitoring and reporting obligations for two or more consecutive reporting periods, and where other enforcement measures have failed to ensure compliance, the competent authority of an EEA port of entry may issue an expulsion order. Where such a ship flies the flag of an EEA country and enters or is found in one of its ports, the country concerned will, after giving the opportunity to the company concerned to submit its observations, detain the ship until the company fulfils its monitoring and reporting obligations.
Per the EU’s Implementing Regulation, it is the Shipowner who remains ultimately responsible for complying with the EU ETS system.

There are a number of great resources on the regulatory and practical aspects of the system – none better than the EU’s own:

‍https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02003L0087-20230605

‍https://climate.ec.europa.eu/eu-action/transport/reducing-emissions-shipping-sector_en

‍https://climate.ec.europa.eu/eu-action/eu-emissions-trading-system-eu-ets/what-eu-ets_en‍

Lockton International has completed its acquisition of Omni Sigorta, the leading Turkish P&I and Marine insurance broker, following the Group’s purchase of a 50% stake in December 2018
Omni’s partnership with Lockton has delivered considerable client value and double-digit organic revenue growth since 2018
The acquisition follows Lockton’s recent announcement of its acquisition of Edge Group in Norway and Singapore, as it scales to deliver comprehensive risk transfer solutions and advisory services for the Marine industry globally

18 May 2022, London - Lockton International has announced that it has completed on the acquisition of Omni Sigorta, the leading Turkish Protection & Indemnity (P&I) and Marine insurance broker based in Istanbul. The deal concludes an existing partnership arrangement that has been in operation since December 2018, when Lockton acquired a 50% stake.

Omni was founded in the 1970s by Captain Emre Omur as family broking business Omur Limited. In 1993, the company rebranded to Omni following its merger with Turkish Marine broker Sun Sigorta and in 1996 Aret Tasciyan joined, accelerating the development of the book. Following a brief engagement with Marsh in 2004 – 2006, Omni Group was re-established in 2007 to form the basis of the company structure and leadership in place today, including operations in London and the USA. Most recently, Omni purchased the Marine book of GTG in 2020 in partnership with Lockton. With a well-balanced portfolio of Hull and P&I business, organic growth has averaged 15.5% over Lockton’s fiscal years 2019 – 2021.

The move demonstrates Lockton’s strategic commitment to bringing together leading specialists in Marine insurance from around the world to deliver exceptional and comprehensive risk transfer solutions and advisory services for the Marine industry, wherever clients initially access its team. It follows Lockton acquisition of Edge Group in Norway and Singapore in October 2021, which expanded Lockton’s Marine platform into Scandinavia and Northern Europe, and enhanced its capabilities in Special Risks.

‍Neil Nimmo, Chairman of Lockton International, said:

Our completion on the acquisition of Omni Sigorta will enhance Lockton’s capabilities in the world’s largest shipping region and consolidate our position as one of the leading marine brokers globally. Omni’s culture is perfectly aligned to Lockton’s – both companies have built their reputation on their client relationships. We place trusted, bespoke client service at the heart of our respective businesses and we look forward to Omni joining us in our continued mission to deliver market leading expertise in the Marine sector.

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‍Gurhan Kullefrom Omni commented:

We are joining an impressive team. Between us, we have great maritime expertise, experience and strength, with a shared focus on serving our clients better than anyone else. Our past four years’ partnership with Lockton has allowed us to face the challenges of market conditions with confidence and to the benefit of our clients.

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Like Omni, Lockton is an independent family business, accountable to itself and its clients. We are excited to become a formal part of a global Marine risk practice with the flexibility and agility that comes from our leadership’s daily involvement in the business.

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‍Alistair Rivers, Global Head of Marine & Transportation at Lockton, noted:

By investing in leading Marine expertise around the world, and connecting it into a global industry platform, we continue to enable the delivery of bespoke local service levels alongside global advisory and placement capabilities. Everyone who joins us has the same ambition: to create a unique global force in Marine risk. Our partnership with Omni has already enhanced client value and delivered strong double-digit organic revenue growth. At a time of unprecedented change in the shipping industry and in the insurance markets, I am delighted to formally welcome such an expert and formidable team into Lockton’s Marine practice and mission.

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Lockton completes acquisition of leading turkish broker Omni Sigorta

The European Union’s Emissions Trading System (EU ETS) was extended to cover emissions from shipping as of 1st January 2024.

The European Union’s Emissions Trading System (EU ETS) was extended to cover emissions from shipping as of 1^st January 2024.