Local guarantors insure company for N14.6bn

Mutual Benefits Assurance Plc, is the principal underwriter for the risk of the corporation for the second year running after its initial contract was automatically renewed.

NNPC Group General Manager, Public Affairs Division, Ohi Alegbe

Local guarantors in Nigeria have insured the Nigerian National Petroleum Corporation (NNPC) for a premium of N14.66bn ($73.7m) for the current financial year, according to reports.

Mutual Benefits Assurance Plc, is the principal underwriter for the risk of the corporation for the second year running after its initial contract was automatically renewed, Punch reports.

According to investigations by Punch, this the biggest part of the NNPC risk, which will cover the four refineries, drilling, exploration and transportation as well as joint venture interests, but excludes group life insurance cover for the employees.

The premium earned is also the single largest that the underwriters have received over the years.

“We were able to negotiate some reduction on the existing premium. The risks and assets, which are what we are insuring, have not reduced. The fall in oil prices can only affect the profitability of oil companies but not the premium,” one of the underwriters said.

The transaction has been confirmed by the insurance department of the NNPC which said that a group of local guarantors led by Mutual Benefits Assurance was handling the insurance cover for the corporation.

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