Arianespace success means rates continue downward trend
After a two month delay, Arianespace successfully completed the first Ariane 5 launch of the year. There was relief all round, particularly for the insurance community, as the two satellites, SES’ Astra 3B and the German military’s COMSATB2 2, were…
After a two month delay, Arianespace successfully completed the first Ariane 5 launch of the year. There was relief all round, particularly for the insurance community, as the two satellites, SES’ Astra 3B and the German military’s COMSATB2 2, were insured for approximately US$700m, believed to be a record amount insured for a single commercial launch.
The success also meant that the continued downward pressure on launch-plus-one rates has not abated. Rates are close to 10% and are widely expected to fall into single figures this year. One space broker told SatelliteFinance: “Rates continue to drift down and I think that they will break the 10% barrier in the next six months, as long as there are no significant failures.”
This downward pressure has made launch-plus-one insurance attractive to even a historically reticent buyer such as EchoStar. The satellite operator is understood to be seeking insurance for its EchoStar-15 and has mandated Willis to place the insurance.
