RISK MITIGATION: What are Updates & Proposals on Risk Mitigation Products?

Product Name Political Risk Insurance
Link to Product Website
Provider Name Zurich Emerging Markets Solutions - USA
Product Definition Companies that sell, invest, or lend into emerging markets face potential losses from political risks that can dramatically affect their balance sheets. Zurich is ready to help them with a market-leading team featuring the most underwriters, worldwide offices, capacity, and collective experience of any private political risk insurer.

We provide political risk insurance for more than 300 of the world's leading companies including financial institutions, multinational corporations, project developers, investors, exporters and infrastructure developers. Zurich's relationship with public agencies and international banks in over 150 countries allows us to create structured overseas deals for your organization any place you need to do business. Our global underwriting staff is highly skilled in aligning your organization's goals with the local needs. Zurich's in-depth understanding of emerging markets and innovative solutions is one of the reasons we've been named by Trade Finance magazine as "Best Private Insurer" for ten years straight.

Solutions for emerging markets risks:

Zurich offers highly flexible, long-term protection for investors, financial institutions, project developers and contractors confronting the political risks of emerging markets. Coverages are customized transaction-by-transaction to address the risks arising from political events where our clients do business. Terms can extend up to 15 years, with capacity of up to US $150 million per transaction. Multi-country and global programs are available.

Coverages include:

1) Expropriation: offers insurance protection in the event of confiscation, expropriation, nationalization and other acts by a host government that deprive an investor of the fundamental rights to its investment or cause an overseas borrower to default on a loan. Coverage is also provided in case of "creeping expropriation," a series of acts that have an expropriatory effect over time.

2) Political Violence: offers insurance protection in the event of losses resulting from damage or destruction of assets or business interruption caused by political violence such as war, revolution, insurrection, civil unrest, terrorism and sabotage. Replacement cost compensation is provided for equity investments. Compensation for loans is calculated based on the amount in default as a result of political violence or business interruption.

3) Currency Inconvertibility: offers insurance protection in the event of the inability to convert local currency to hard currency and repatriate converted currency. Consequently, coverage can help our clients to remit dividends, capital, loan payments and other payments.

Coverages for non-honouring of sovereign guarantees, wrongful calling of bonds, capital markets bond issues, mobile assets and leasing are also available.

Typical clients have over $100M in sales and including, but not limited to:

- International banks
- Large manufacturers with overseas facilities
- Trading companies
- Construction, telecommunications, power, and other infrastructure developers
- Natural resources companies: oil, gas, mining
- Other firms selling to overseas governments and state owned entities, as well as to private buyers.

Product Type Political Risk Insurance
Defined Risks Covered n.a. More on Risks Covered
Eligible Form of Investments All
Eligible Currency of Underlying Investment Covered by this Product Both local and foreign currency
Eligible Countries & Regions All
Eligible Applicants n.a.
Eligible Sector No Specific Sector
Maximum Tenor 15+ to 20 years
Max. Absolute Amount (USD) 0 to 50 MM
Max. % of Project Costs Covered 100%
Max. % of Export Content Covered Max./under 50%
Fees Market-based

Other Conditions Sovereign Counterguarantee: No
Anti-Corruption and Governance Standards: No
Environmental standards: No
Social standards (incl. Human Rights Standards; Labor Rights Standards): No
Source(s) http://www.zurichna.com
For more information, contact David Anderson
Director, Global Business Development, Zurich Credit and Political Risk
Email: david.anderson@zurich.com
Phone: (202) 585-3113

Anne Marie Thurber
Email: annemarie.thurber@zurich.com
Phone: (202) 585-3104
Attachments Application for Political Risk Insurance.pdf
Non-Binding Inquiry for Political Risk Insurance.pdf
Political Risk Insurance.pdf
Additional Links n.a.
Deals n.a.

Provider Name Zurich Emerging Markets Solutions - USA
Institution Type PUBLIC: Multilateral Development Bank
Ownership Private
Head Office 1201 F Street, N.W., Suite 250, Washington, D.C. 20004
Provider Home Country United States
Rating n.a.
Main Risk Mitigation Products Political Risk Insurance
Trade Credit Insurance
Attachments Solutions for infrastructure developers and lenders.pdf
Additional Links
Entered On: 11/11/2008 at 05:56 PM
Updated On: 05/20/2013 at 01:46 PM