African Oil and Energy Insurance Pool have admitted five Nigerian insurance companies and one reinsurer from Tunisia into the pool with a subscription of $200,000.
The admission of the four insurance companies namely: Aiico Insurance Plc, Union Assurance Company Limited, Royal Exchange General and Universal Insurance Plc and Continental Reinsurance Plc all from Nigeria, and Tunis Re from Tunisia.
Efforts to deepen the African Insurance market to underwrite large risks in the volatile oil, energy and aviation through capacity building has continued to receive major boosts, as the pool under the African Insurance Organisation (AIO) continued to boost as more insurance companies are joining the pool.
The number of Nigerian insurance companies that are members of the pool has increased from 26 to 31 at present.
The pool at its Management board meeting in Nairobi, Kenya, early last month considered the applications of the six companies admitted having gone through their accounts and fond them eligible to be members of the pool.
According to the pool, â€œApplication for membership of the pool was received from Tunis Re and five Nigerian companies-Universal Insurance Plc, Aiico General Insurance Company, Union Assurance Company Limited, Royal Exchange General and Continental Reinsurance Plcâ€
The financials statements were analyzed and the companies were found to be eligible for membership. The managers therefore recommend admission with a participation of US$200,000 eachâ€
Africa Oil and energy pool has reported a premium income of $9,694,545 in the financial year ended December 31, 2008. An underwriting profit of $10,019,535 was recorded in the year under review against $9,022,116 posted the year before.
Within the period under review, two West African insurers also joined the league of 40 insurance companies in the African countries for Oil, Energy Insurance Pool bringing the total to 42.
The two companies are Mainstream Reinsurance Company, Ghana and Nigeria ‘s Regency Alliance Insurance Plc, totaling 42 companies now in the oil and energy pool.
Regency Alliance’s admission into the pool has increased the number of Nigerian companies in the pool to 26 companies.
The Nigeria companies are competing with insurance companies from Algeria, Ethiopia, Egypt, Kenya, Madagascar, Senegal, Sudan, Tanzania, Zambia, Tunisia, Togo and Zimbabwe that are into oil, energy and aviation insurance pool while insurance companies from Benin Republic and Cameroon are for the oil and energy pool just as Libya, Morocco, Ghana, and Eritrea are for aviation pool only.