By Nike Popoola

Monday, 1 Nov 2010

International Energy Insurance Plc has restated its commitment to the development of the oil and gas insurance business in Nigeria.

In a statement by the company on Saturday, the Executive Director, Operations, IEI, Mrs. Roseline Ekeng, gave this assurance after the company settled energy business claim of N22m to one of the top oil producing firms in Nigeria.

The statement added that, earlier, the company had settled an energy business claim of $450,000 to another oil firm, aside from non-energy settled claims. The total claims settlement to oil and gas related business from January to date, she said, had not been less than N500m.

Ekeng noted that prompt response to claims payment remained the hallmark and core value of IEI‘s business.

She added that, though insurance business was often affected by low premium collection and poor patronage – all dictated by the downturn in the Nigerian economy, there was the hope that things would get better.

She said, ”If adequate premium collection is secured, there will be a healthy pool of funds to settle claims.”

The insurer was, however, worried that poor rate tariffs precipitated by sharp under- cutting was becoming injurious to business in the industry.

IEI has an authorised share capital of N8.5bn, with N3.2bn paid up and a shareholders‘ fund in excess of N11.4bn.

Source: Punch