20 November 2012

Nigeria: AIICO Can Underwrite Oil and Gas - Firm

AIICO Insurance plc said it has the required capacity to underwrite the highly risky yet lucrative oil and gas sector. The company's managing director, David Sobanjo, said this while responding to questions from journalists in Lagos, recently.

He said with a shareholders fund in excess of N10 billion and strong capacity in oil and gas, AIICO is capable of providing cover in the oil and gas sector.

"AIICO is offering comprehensive coverage for both oil and gas constructions and also for operational activities associated with oil and gas," Sobanjo said. Sobanjo said AIICO can offer support to companies in the oil and gas sector including those involved directly in oil and gas operations, liquefied natural gas, petrochemical companies, solid mineral companies, independent power plant operators and international oil companies.

He said the 51 year old underwriting firm is backed by A+ rated S & P (Standards and Poor) and AM Best reinsurers and this makes it easy for the company to pay all claims promptly no matter how huge it may be.

He maintained that the company participates in construction, all risks and operational assets of all the international oil companies in the country both as a leader and as a co-insurer.

He further explained that the key features of AIICO's service offerings in the area of oil and gas insurance include construction all risks, loss or damage to operational assets, third party liability operators extra expenses, control of wells, pollution liability and business interruption, among others.

In keeping faith with its promise to pay all claims promptly, AIICO paid claims totaling N8.6 billion between January 2010 and December 2011.

Sobanjo also assured that the insurance firm will continue to discharge its responsibility in the area of claims payment whenever the need arises. He explained that out of the total claims of N8.6 billion paid during the 24 months period, over N3.1 billion was paid as claims under General Insurance business while the Life Insurance business accounted for N5.5 billion claims.

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