Insurance Company NIC
NIC provides reliable insurance protection of Volga-Dnepr Group from external threats. It insures all aircraft of Volga-Dnepr Group. NIC also insures Group personnel and property.
Aviation insurance premiums accounted for 85% of NIC IC’s annual business in 2015. Based on the volume of premiums for aircraft hull insurance and third party liability insurance, the company has a 5% share in the aviation insurance market and is the seventh largest aviation insurer in Russia. Its marginal revenue in 2015 was RUB 69 million.
NIC IC was able to achieve a significant reduction in rates when renewing the insurance contract for the Volga-Dnepr Group fleet for hull insurance and third- party liability insurance. For Volga-Dnepr Airlines, rates decreased by 21% and for AirBridgeCargo and ATRAN they reduced by 18%. The total savings for the Group exceeded USD 530,000 with the total cost of the fleet, compared to 2014, having grown by almost 5%.
An important stage of work with the reinsurance market was the decision to rapidly change the reinsurer leader of Volga-Dnepr Group for insurance policies (aircraft hull insurance + third- party liability insurance, deductible, AVN52E): USA-based AIG was replaced by the UK insurer Aspen Insurance. This step, on the one hand, facilitated the process of insuring flights to different regions for airline companies of the Group, which are affected by sanctions (the USA is the country with the most rigid policy of implementing various extraterritorial sanctions). On the other hand, an advantageous agreement with the new leader helped keep insurance premiums at the same level, despite the common market trends.
In 2015, NIC IC continued to search for alternative insurance capacities to provide insurance coverage for flights of the Group to the regions affected by sanctions. The company built close relationships with the reinsurance markets of Kazakhstan and Belarus, which increased the volume of coverage provided for flights to Myanmar and Iran.
To date, the company has accumulated unique experience of insuring major aviation risks, as well as established an effective reinsurance partnership with leading international insurance companies; Aspen Insurance, Partner Re, Allianz, Liberty, La Reunion Aerienne, AMLIN, Swiss Re, TALBOT, XL/Catlin, Lloyd’s syndicates and others. Work is ongoing to expand the list of long- term reinsuring partners, including in the Chinese insurance market.