ANI’s Insurance Pools

We operate multiple underwriting pools that include domestic and foreign coverage, which have provided member companies with outstanding returns. A member must participate in the pool writing direct third-party liability insurance in order to participate in the Foreign and other pools.

ANI’s operating income is distributed to members based on their percentage of participation in each of the pools.

The four pools ANI currently operates are as follows:
Liability Pool

The Liability Pool offers third-party nuclear liability insurance to domestic operators of nuclear power reactors, nuclear fuel fabrication facilities, waste disposal and other nuclear facilities. It also writes nuclear liability insurance for suppliers of products or services (including transportation services) to these facilities.

The Liability Pool also provides additional capacity for use as a contingent liability limit under a secondary financial protection program for operators of nuclear power plants.

Property Pool

The Property Pool currently reinsures a significant portion of NEIL’s nuclear property program, which provides property insurance for all operating power reactors in the United States. ANI assumes an excess of loss reinsurance share of the NEIL program. This arrangement has proven quite beneficial to the membership in terms of both income and spread of risk.

Foreign Pool

The Foreign Pool provides reinsurance to foreign nuclear pools for placement at nuclear facilities overseas and in North America outside of the United States. Reinsurance is assumed on a facultative basis except in Japan, where third party liability business is assumed under a quota share treaty. Additionally, property reinsurance is assumed from the European Mutual Association for Nuclear Insurance (EMANI), a European mutual insurer, under an excess of loss treaty program. The Pool also writes direct liability coverage for US suppliers of products or services to foreign nuclear facilities.

The Foreign Pool typically contributes substantially to ANI’s total operating results, making it a very attractive business opportunity for ANI’s member companies. This arrangement has proven quite beneficial to the membership in terms of both income and spread of risk.

Builders Risk Reinsurance Pool

ANI reinsures NEIL for a single builders risk contract for Georgia Power Company’s Vogtle site, units 3 and 4. This is a multi-year project in Georgia for which ANI provides NEIL with $235,000,000 in facultative reinsurance capacity. The term of the contract coincides with the policy period. Although future prospects for new reactors to be built in the US are unknown at this time, ANI is well positioned to continue reinsuring this new line of business.From this point forward, as new builders risk opportunities present themselves, ANI will form a separate pool for each project to take advantage of such opportunities. This approach provides ANI member companies the flexibility to accept an offer to participate on a case-by-case basis.

Since 2010, The Builders Risk Reinsurance Pool has served to keep ANI active in the nuclear new build insurance market as the industry we insure goes through this important transition. Our participation has also enhanced our business relationships with NEIL and our policyholders.