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Insurance industry

ICO Global Communications Secures $77 Million Insurance Coverage for Satellite Constellation

Strategic Insights

— 1 min read

ICO Global Communications, a leading global mobile communications company, has insured the launch and in-orbit operations of its 12-satellite constellation at a premium of $77 million. The insurance package, brokered by J & H Marsh & McLennan, provides over $200 million in coverage for the manufacture and launch of replacement satellites beyond the first two losses. This significant investment underscores the company's commitment to its ambitious project, which aims to provide global mobile personal communications services by satellite. The constellation is expected to offer a range of services, including digital voice, data, fax, and messaging, to a diverse user base, including international business travelers, rural residents, and industries such as transportation, aeronautics, and maritime.

Key Takeaways:

  • ICO Global Communications has insured its 12-satellite constellation at a premium of $77 million, securing over $200 million in coverage for the manufacture and launch of replacement satellites.
  • The insurance package provides five years of coverage for satellite operations and is underwritten by J & H Marsh & McLennan.
  • The constellation is expected to offer global mobile personal communications services, including digital voice, data, fax, and messaging, to international and domestic cellular users.
  • ICO Global Communications has raised over $2 billion in equity contributions from 60 strategic investors, comprising telecommunications and technology companies from over 50 markets worldwide.
  • The company's services will be used by a diverse user base, including international business travelers, rural residents, and industries such as transportation, aeronautics, maritime, media, and mining.
  • ICO's satellite service is expected to be launched in the year 2000, utilizing a new generation of pocket-sized mobile phones that will allow users to make and receive calls at any time, anywhere in the world.

Statistics:

  • Premium: $77 million
  • Coverage: Over $200 million
  • Number of satellites: 12
  • Number of launch vehicles: 4
  • Number of years of coverage: 5
  • Equity contributions: Over $2 billion
  • Number of strategic investors: 60
  • Markets represented by investors: Over 50

Sources:

  • BUSINESS WIRE, October 26, 1998
  • ICO Global Communications press release, October 26, 1998
  • J & H Marsh & McLennan news article, October 1998
  • Nasdaq exchange listing, ICOGF (ICOGF)

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