One of the world's largest airline insurance policies is handled by Guernsey-based Polygon Insurance Company Limited, which celebrates its coming of age this year.
The policy includes hull and liability insurance for the combined fleets of its five shareholder airlines KLM, SAS, Swissair, Austrian Airlines and Finnair. Polygon also underwrites other general risks for its shareholders and those of their related companies. In addition it handles a substantial amount of third party aviation insurance and reinsurance business including that of Aurigny Air Services, the provider of inter-Channel Islands scheduled air services.
Formed in 1975 primarily as a pure captive for KLM, SAS and Swissair, Polygon later became a predominantly third party underwriter. Polygon's original shareholders were joined in 1992 by Austrian Airlines and Finnair. Polygon was started with a staff of six and today employs a highly specialised team of fifty people including top aviation underwriters and its paid-up capital has increased from £500,000 to £50 million.
Writing in the company's last published annual report and accounts, Martin Belcher, Managing Director, described a profit in excess of £2m for 1994, as: 'Excellent, particularly bearing in mind that 1994 was the worst ever year for airline losses.' He also wrote: 'A review of the group's balance sheet shows investments up from £5m to £16.7m and cash at the bank up from £14.5m to £28.3m Share capital is up from £30m to £50m and as a consequence of the £2,073,000 profit, reserves have gone from a deficit of £2,007,000 in 1993 to a surplus of £66,000 this year.'
For further information contact Peter Crook on Tel: +44 (0) 1481 712 706 or Fax: +44 (0) 1481 712 010.
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