African Aviation Insurance Pool (AAP) has increased its premium income by 15.39 percent as at December 31, 2009. Premium income of the pool stood at $5.61 million, representing an increase of 15.39 percent as against $4.87 the previous year.
The Pool beings managed by Africa Reinsurance Corporation, raked an underwriting profit of $2.45 million and an operating profit of $2.22 million, showing a 182.7 percent growth from $785,083.00 in 2008.
Mr Ken Aghoghovbia African Reâ€™s Regional Director disclosedÂ the performance of the Pools at the General Assembly of the African Insurance Organisation (AIO) held in Banjul , The Gambia.
Aghoghovbia said the achievement of the Pool in 2009 could be attributed largely to the continued cooperation and commitment of the members.
According to him, â€œ Aviation Pool recorded growth even with the competitive nature of the market, stating that the account also grew during the period under review.
He said that 2009 was however a disappointing year for underwriters as premium increased only by 10-15 percent which is less than the prediction made even mid way in the year.
â€œThe African Aviation industry reflected similar trend as the international market marginal premium increases were experienced not only for airline business but also for general aviation in 2009â€
He however thanked the members of the Pool for their support while optimistic about the future ahead.
Justus Uranta, managing director, Niger Insurance plc, member of the two Pools said the effort of the African insurers to penetrate the oil and energy sector and hold a reasonable stake in the business is yielding positive fruits.
Uranta said there is need to put in more effort, stating that the pools are helping to build capacity in terms of funding as wells human capital development. Â The pool was set up to promote exchange of insurance and reinsurance business