Zurich Increases Emerging Markets Risks Capacity

Copyright 2008 Euromoney Institutional Investor PLCAll Rights Reserved Trade Finance

March 2008

SECTION: MARKET UPDATE

LENGTH: 251 words

HEADLINE: Zurich increases emerging markets risks capacity

Zurich, the political risk and trade credit insurer, has increased its political risk insurance capacity to $125 million per risk with up to 15 years cover.

The company is also offering $35 million per risk and up to seven-year cover for trade credit insurance. The increase has been caused by growing demand for coverage in emerging markets by multinational companies, project developers, contractors, exporters and financial institutions.

Dan Riordan, executive vice president and managing director for Zurich's emerging markets unit, says: "Zurich has experienced a significant increase in demand for political risk and trade credit insurance in part due to moves by banks, exporters and corporations to limit their emerging markets exposures. By increasing political risk capacity, we will help address increasing demand related to new trade and investment in various emerging markets."

Zurich's coverage includes expropriation, political violence and currency inconvertibility due to political instability. The company also offers coverage for non-honouring of sovereign guarantees, wrongful calling of bonds, capital markets, bond issues, mobile assets and leasing.

In addition to political risk insurance, Zurich offers trade credit insurance that protects financial institutions, exporters and commodities traders against payment defaults by companies located in emerging markets. Zurich structures policies with capacity up to $35 million per transaction, and policy terms between one and seven years.

LOAD-DATE: May 19, 2008