Custodian and Allied Insurance Plc is leading 39 other insurance companies on the 2010/2011 Nigerian National Petroleum Corporation- Consolidated Insurance Policy (NNPC-CIP) just as co-insurers on the accounts are commending the lead insurer over the way and manner it has coordinated the accounts.
Custodian and Allied Insurance is for the first time leading the NNPC-CIP account with a whopping $40,597,934,179.00 whilst it ceded 33.50 percent amounting to $17,294,887.23 to co-insurer and re-insurers. Apart from the way the lead underwriter synchronized the accounts, the NNPC-CIP for 2010/2011’s percentage for local underwriters was upped from 19.5 percent last year to 33.50 percent in the current insurance year.
In spite of the fact that there is a reduction in the premium income for 2010/2011 to $40,597,934,179.00 from US$42,425,916.80 premium income paid by the corporation the previous year, the 39 coinsurers in the account are rejoicing over the prompt payment ofÂ their proportions by the lead insurer.
Vanguard investigations revealed that Custodian and Allied Insurance Plc invited all parties involved in the accounts to a meeting three weeks back where the Managing Director, Mr Wole Oshin personally handed over cheques according to individual insurers’ proportions of the account to them against the usual practice of premium payment delay and other bureaucracy that encumbered such big account.
One of the coinsurers who spoke to Vanguard anonymity said coinsurers of the NNPC-CIP account had never had it so good and so smooth in terms of coordination and prompt payment.
Besides, Leadway Assurance Company’s proportion of the accounts is the largest among the 39 insurance companies with 4.125 percent and a net premium of $2.076million followed by Lasaco Assurance with 1.350 percent and a net premium of $679,534.19 whilst Aiico Insurance, Guaranty Trust Insurance.Â International Energy Insurance, Goldlink Insurance, Unity Kapital Insurance, Sovereign Trust Insurance, Royal Exchange assurance General Insurance and Guinea Insurance have 1.000 proportion a piece and 29 other insurance companies’ proportion in the accounts range from 0.750 to 0.150 percent.
However, the overall proportion to local co-insurers and two reinsurers in the account, Africa reinsurance Corporation and Continental Reinsurance Plc, is 33.500 percent; sum insured to local coinsurers is $13, 600, 307,949.97 and net premium $16,862,515.05.
The federal government broke the monopoly of the accounts being managed for a long time by one insurance company. The accounts had in the last few years moved from Nicon Insurance Corporation which managed the account for so many years to Industrial and General Insurance that took it over for about four years and to Leadway Assurance which ran the account for three years before Custodian and Allied Insurance.
Mr Odunayo Bammeke, General Manager, in charge of Insurance of the Corporation had said that out of the available risk in the oil and gas sector, with a corresponding premium income of $224 million, Nigerian underwriters had been able to retain about 33 per cent; about N33 billion of the total risks exposures.
However, the amount is at the exclusion of other risks in the Nigerian National Petroleum Corporation which currently stand at $32 billion. The Nigerian underwriters had been able to absorb 42.5 per cent as at 2007 and 52.5 per cent as the end of the 2008 financial year and 48 percent in 2009.
According to him, after two years of pursuing the Nigerian Content Policy objectives, the content level has grown from below 10 per cent to approximately 40 per cent in the first quarter of 2009.
â€œThere has been significant growth in opportunity and corresponding advances in indigenous capacity, arising from guidelines issued to the industry on the specific work scope to be performed in Nigeria and this cuts across all sectors of the industry.