The National Insurance Company of Egypt has won an LE 500 million deal launched by the Egyptian Electricity Transmission Company in Alexandria and West Delta Region for underwriting its project for an aerial power transmission line extending from Cairo to Sidi Krir through Al-Nubariya.
Mohammad Abdullah, head of the National Insurance Company, said on Monday that his company beat six other competitors for the deal, including Misr Insurance, Arab Misr Insurance Group, Delta Insurance, Suez Canal, and Allianz for Non-Life Insurance.
The company will underwrite contractors and installation risks, in addition to civil responsibility risks at an annual premium cost of 3 percent of the total deal value.
The aerial power transmission line will extend 130 km from Cairo to Sidi Krir in Alexandria, as well as a 100 km line from Cairo to Al-Nubariya.
A senior official from Al-Chark Insurance said that his company joined in the competition with an offer of 3.5 percent annual premium from the project’s value.
The chairman of the National Insurance Company said company officials have already started negotiations with Munich Re of Germany for reinsurance on the deal, after Swiss Re refused to underwrite the policy due to it being a high risk compared with the fair technical rate of return. He pointed out that Swiss Re requested to get 95 percent of premiums in return for covering the project’s risks.
“Our talks with Munich Re aim to convince the German company to accept 85 percent or 90 percent of premiums for reinsurance services, Abdullah added.
