OREANDA-NEWS. February 02, 2009. The Russian Nuclear Insurance Pool (RNIP) concluded an inwards facultative risk reinsurance contract with the China Nuclear Insurance Pool (CNIP) in Beijing. The document was signed by the Chairman of the RNIP Supervisory Board, Chairman of the Management Board of SOGAZ Insurance Group, Vadim Yanov, and CNIP Chairman, Wu Gaolian, President of China Re Group of Companies, reported the press-centre of SOGAZ.

The Russian Nuclear Insurance Pool (RNIP) concluded an inwards facultative risk reinsurance contract with the China Nuclear Insurance Pool (CNIP) in Beijing on January 19, 2009. The document was signed by the Chairman of the RNIP Supervisory Board, Chairman of the Management Board of SOGAZ Insurance Group, Vadim Yanov, and CNIP Chairman, Wu Gaolian, President of China Re Group of Companies.

The contract provides for ceding to the China Nuclear Insurance Pool, the non-proportional civil liability risk reinsurance of OJSC Concern Energoatom (prior to incorporation – FSUE Concern Rosenergoatom) with a liability limit, which exceeds the RNIP’s priority by USD 3 million (USD 135 million).

It should be noted that this is the RNIP’s second contract with a foreign insurance pool (a similar contract was previously signed with the Ukraine Nuclear Insurance Pool).

According to Mr. Yanov, the Russian and Chinese Nuclear Insurance Pools plan to sign a similar contract next summer for civil liability risk reinsurance for Chinese NPPs. “We currently have an effective bilateral agreement between the RNIP and the CNIP providing for a balance of interests of both sides.

In this connection, once the CNIP resumes the effective liability insurance contracts of Chinese nuclear power plants in July 2009, a portion of the reinsurance of those risks will be ceded to the Russian Nuclear Pool. An agreement in principle to this effect has already been reached, and we are discussing specific terms and details for the future contract,” noted Mr, Yanov.

The China Nuclear Insurance Pool was created in 1999. Today, it comprises 17 companies, including a foreign reinsurer. The Pool’s aggregate liability limit for operations in the Chinese market amounts to USD 416 million. The CNIP has bilateral relations with 21 national nuclear insurance pools. In China there are currently eleven operational power plants at six NPPs with another twelve under construction.

The Russian Nuclear Insurance Pool was created in 1997. It presently consists of 22 member-companies, eight of which have the highest national credit rating of А++. The Pool’s capacity amounts to RUR 13 billion. The RNIP’s clients are FSUE Atomflot and OJSC Concern Energoatom, which includes all Russian NPPs (31 operational power plants and seven units under construction).