By Favour Nnabugwu
THE African Aviation Pool recorded a dip in gross premium income by 34.5 percent at the end of December 31, 2016 to US$741,172 from US$996,610 posted in 2015 due to fall in premium rates.
The subscribed capacity of the pool as reported at the 2017 African Insurance Organisatin (AIO) conference in Kampala, Uganda, stood at $8,110,000 in 2016 against $7,960,000 posted in 2015 while compound annual premium growth rate was 25.59 percent over the period 2012 through to 2016.
The pool’s membership currently stands at 53 while the structure of the Excess of Loss retrocession programme was maintained this year with Lloyd’s syndicate, Cathedral, as leader for first and second layers.
The Pool’s bank balance as at December 31, 2016 stood at US$292 billion against US$277.4 billion recorded the previous year. An emerging trend of gradual withdrawal of capital from the market is taking place as a number of underwriters are taking a much tougher stance on rating. It is necessary for the stability of the Aviation insurance industry for caution to prevail in the market place.