African Oil and Energy Pool

African Oil and Energy Pool

Rationale of the pool

  1. To create capacity within African Oil, Gas, Petrochemical and Energy related insurance risks emanating from Africa with a view to reducing foreign exchange outflow.
  2. To provide adequate insurance cover to match the rapid technological advancement of individual African countries and to further ensure that oil companies operating in Africa are charged competitive premium rates in order to enhance profitability and stabilize the African Oil insurance market.
  3. To create the manpower capacity and acquire technical expertise in the insurance of oil and gas related risks, through a systematic manpower development.
  4. To disseminate technical information to members of the pool on issues affecting oil and energy insurance risk.
  5. To give technical support and advice to insurance companies operating in Africa on matters relating to risk management and insurance of oil and energy related risk

Historical background

The 13th General Assembly of the African Insurance Oganisation held in Bujumbura, Burundi on 20th June 1986, resolved to establish the African Oil & Energy Insurance Pool (AOEIP) to achieve the objectives described above.

The Pool started operation on 1st January 1989 and its first financial year extended to 31st December 1990. Since inception, the African Reinsurance Corporation has acted as the Manager of the Pool, providing proven quality leadership through the years. This attestation is evidenced in the growth of the Pool’s premium income from a modest US$0.28 million in its first financial year up to US$20.9 million at the end of financial year 2014.

Diversity of members

Years USD 2017 2018 2019 2020 2021
Gross premium 27,001,871 28,157,981 30,600,250 28,246,581 28,687,090
Underwriting profit 1,671,444 -4,330,408 -5,129,872 -7,306,030 4,311,278
Claim expenses -12,278,627 -22,189,638 -26,327,554 -25,981,459 15,287,283
Operating profit 722,130 -6,577,041 -11,155,687 -10,085,088 2,884,515
Total asset 81,829,328 65,828,791 89,590,921 73,589,586 73,782,176
Members account 50,195,898 43,618,857 32,463,169 24,307,794 24,918,561
Surplus payment 0 0 0 0 0
  • Wole Oshin
  • Oye Hassan Odukale
  • Lamia Ben Mahmoud
  • Jean Baptiste Kouame
  • Owana Fouda Max
  • Rajnikant Varia
  • Olaotan Soyinka
  • Adel Ahmed Mousa
  • Hadji Mohammed Seba

Wole is the founder and Group Managing Director of Custodian and Allied Plc. Having graduated from the University of Lagos with a B.Sc. in Actuarial Science, Wole at various times worked at the National Insurance Corporation of Nigeria (NICON), Femi Johnson & Company Limited (Insurance Brokers) and Crusader Insurance Plc, from where he left to found Custodian in 1994.

Wole has over 26 years’ experience in Insurance Underwriting/Claims, Marketing and Investment. He serves on the Board of several companies and was on the Presidential Committee that set up the reforms in the Pensions Industry.

Wole is a past Chairman of the Nigerian Insurers Association, former Council member of the West Africa Insurance Institute (WAII), a member of the Council of the West African Insurance Companies Association (WAICA). He is a Fellow of the Chartered Insurance Institute of Nigeria and an Associate of the Chartered Insurance Institute, U.K. He is the first and only African and also a Director of the International Insurance Society (IIS) New York, the elite society of insurance companies worldwide. He is an alumnus of the Harvard Business School.

He is the current President of the Lagos Business School Alumni Association (LBSAA).

He is a Member of the Federal Republic of Nigeria. He is currently serving on the Executive Committee of the African Insurance Organization and is the immediate past Chairman of the Nigerian Insurers Association. He is a product of Mayflower School, Ikenne Ogun State and a graduate of the University of Houston, Texas, USA from where he obtained Bachelor and Master Degrees in Business Administration, specializing in Finance. He started his career in insurance with SCIB & Company Insurance Brokers (then an affiliate of Sedgwicks Insurance Brokers) in 1980 and joined Leadway Assurance Company Limited in 1981. He became the Managing Director and Chief Executive Officer of the company in 1994. He is a Munich Re scholar, being the First West African recipient of the Munich Re Insurance Fellowship at Georgia State University. He has done extensive research on Computerization of Insurance Business. Mr. Oye Hassan-Odukale is on the board of a number of reputable companies. He also served on the Federal Government of Nigeria's Committee for the review of Insurance Laws.

Ms Lamia Ben Mahmoud is a Board Member at Arab Reinsurance and the representative of La Societe Tunisienne de Reassurance at El Amana Takaful as Board. She is the current Chairman of the African Insurance Organization (AIO) and Chairman of the Board and General Manager of La Societe Tunisienne de Reassurance(Tunis Re).

He is the Managing Director/Chief Executive Officer of CICA Re, Togo.

He is the Managing Director/Chief Executive Officer of Chanas Assurances, Cameroun.

Mr. Rajnikant Varia, also known as Rajni, Bsc (Engineering), has been the Managing Director of Zep Re Pta Reinsurance Company since October 2008. Mr. Varia served as the General Manager of Zep Re Pta Reinsurance Company since 2004. He has over 30 years’ experience in reinsurance business. Mr. Varia had served in various positions including as a Consulting Engineer for Kenya Glassworks and Gasston and Barbour, Chief Representative and Resident Engineer for the Munich Re (East Africa) office and member of the Operational Management team at Munich Re. Rajni Varia is a renowned expert in engineering insurance and has facilitated many training sessions in this field. He is currently a visiting lecturer in engineering insurance at the West African Insurance Institute in Gambia. Mr. Varia also holds a directorship position with Tanzania National Reinsurance Corporation Limited (TANRE). He served as a Director of Zep Re Pta Reinsurance Company since October 2008. Mr. Varia holds a Bachelor of Science degree in Engineering from the University of East Africa.

Olaotan Soyinka is an erudite and well-grounded Underwriter with over 20 years cognate experience. He is an Associate of the Chartered Insurance Institute of Nigeria. He is a Graduate of Insurance from University of Lagos and also holds an M.Sc degree in Marketing from the same university. He joined Sovereign Trust Insurance Plc in March 1998. A seasoned Professional who has plied his trade in both Marketing and Technical Divisions of the organization is expected to bring his overwhelming wealth of experience to bear in providing instructive leadership to the company while taking it to the next phase of its growth stage. Soyinka is an alumnus of the Lagos Business School having successfully completed the Senior Management Programme of the Institution. He is also a member of the prestigious Ikoyi Club 1938.

Mr. Adel Ahmed Mousa is the Chairman & Chief Executive officer of MISR Insurance, Egypt. He is the representative of Misr Insurance at Societe Arabe Internationale de Banque as Board Member since December 2013.

Mr. Seba has been the Managing Director/ Chief Executive officer of Central Reinsurance Company Algeria (CCR Algeria) from 2007 till date. Prior to his appointment, he was Director of Insurance at the Ministry of Finance, Algeria between 1999 and 2007 and was Sub-Director of Insurance Supervision between 1995 and 1999.

Mr. Seba holds a Degree in Financial Economics from University of Alger and a Diploma in Finance with specialization in Insurance from IFID, Tunisia.

Country Company Subscription Share
Nigeria ADIC INSURANCE CO. LTD 150,000 1.69
Nigeria WAPIC INSURANCE 150,000 1.69
Nigeria ZENITH GENERAL INSURANCE CO. LTD 150,000 1.69
Nigeria REGENCY ALLIANCE 100,000 1.13
Nigeria UNION ASSURANCE 200,000 2.26
Nigeria UNIVERSAL INSURANCE PLC 200,000 2.26
Ethiopia ETHIOPIAN INSURANCE CORPORATION 50,000 0.56
Kenya KENYA RE 90,000 1.02
Kenya P.T.A (ZEP. RE) 250,000 2.82
Nigeria ROYAL EXCHANGE 200,000 2.26
Nigeria CONTINENTAL REINSURANCE PLC 200,000 2.26
Madagascar ASSURANCE REASSURANCE OMNIBRANCHES (A.R.O) 50,000 0.56
Algeria COMPAGNIE CENTRALE DE REASSURANCE 250,000 2.82
Benin L’AFRICAINE 85,000 0.96
Cameroon CHANAS ASSURANCES S.A 150,000 1.69
Ghana MAINSTREAM REINSURANCE 100,000 1.13
Egypt MISR INSURANCE COMPANY 300,000 3.39
Madagascar N.Y. HAVANA 50,000 0.56
Nigeria LEADWAY ASS. CO 250,000 2.82
Nigeria LAW UNION & ROCK 200,000 2.26
Nigeria NICON INSURANCE CORPORATION OF NIG. 250,000 2.82
Nigeria NIGER INS PLC. 250,000 2.82
Nigeria NIGERIA RE 250,000 2.82
Nigeria EQUITY INDEMNITY INS. CO. 200,000 2.26
Nigeria GREAT NIGERIA INS.PLC 200,000 2.26
Nigeria PRESTIGE ASSURANCE CO. LTD. 200,000 2.26
Nigeria CRUSADER INSURANCE CO. LTD. 200,000 2.26
Nigeria ALLIANCE & GENERAL INSURANCE CO. LTD 100,000 1.13
Nigeria LINKAGE ASSURANCE CO LTD 200,000 2.26
Nigeria YANKARI INSURANCE CO. LTD. 200,000 2.26
Nigeria INDUSTRIAL & GEN. INS. CO. 200,000 2.26
Nigeria NEM INSURANCE PLC 200,000 2.26
Nigeria MANSARD INSURANCE 200,000 2.26
Nigeria SOVEREIGN TRUST INS. PLC 200,000 2.26
Nigeria STANDARD TRUST ASSURANCE PLC 200,000 2.26
Nigeria CUSTODIAN &ALLIED INS. PLC 200,000 2.26
Nigeria MUTUAL BENEFITS ASSURANCE PLC 200,000 2.26
Nigeria CONSOLIDATED HALLMARK INSURANCE CO.LTD. 150,000 1.69
Nigeria INTERNATIONAL ENERGY INSURANCE CO. LTD. 150,000 1.69
Nigeria CORNERSTONE INSURANCE PLC. 200,000 2.34
Nigeria GOLDLINK INSURANCE PLC 150,000 1.69
Nigeria ANCHOR INSURANCE CO. LTD 150,000 1.69
Senegal SEN RE 50,000 0.56
Sudan SHEIKAN INS. & REINS. CO. LTD 50,000 0.56
Togo CICA RE 185,000 2.09
Tunisia GAT TUNISIA 50,000 0.56
Tunisia TUNIS RE 200,000 2.26
Zimbabwe ZIMBABWE RE 50,000 0.56
Nigeria AIICO GENERAL 200,000 2.26
AFRICAN REINSURANCE CORPORATION 350,000 3.95
Nigeria GUINEA INSURANCE PLC 150,000 1.69
Sudan NATIONAL REINSURANCE COMPANY 150,000 1.69

Membership criteria

Membership of the AIO is a prerequisite to membership of the Pool. Other African Insurance companies which qualify for membership of AIO or having majority indigenous shareholding and which write oil and related risks shall also qualify for membership on condition that they offer a share to the Pool.

The minimum subscription for membership is a pledge against company’s capital of US$50,000 and such subscription must not exceed 2% - 4% of paid up capital and free reserves or 1% - 3% of gross premium written.

As at 31st December 2017, the Pool had a membership of 50 African insurance/reinsurance companies with a total subscribed capacity of $8,560,000. Members’ capacity is limited to the subscribed capacity only.

Pool capacity

The Pool currently has a capacity of USD90 million.

Pool Administration structure

The General Assembly is the highest organ and is composed of all the Members of the Pool, including the Manager. The Technical Management board elected every three (3) years are responsible for general operational policies. The Manager is elected by the general assembly every five (5) years on recommendation of the Technical Management Board.

The African Reinsurance Corporation is the Manager of the Pool. For information on membership, cession to the pool, technical assistance etc., you may wish to contact us directly