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 about the 'Exporters Insurance Company' , Bermuda

'Exporters Insurance Company' is a "group captive" underwriter of trade credit and political risk insurance.

• SHAREHOLDERS:
  Exporters' active membership currently comprises 91 leading multinational companies and banks from 20 countries.
• QUALIFY:
  Any qualified corporation, bank, finance company, or trading company involved in international trade or foreign direct investment is eligible to apply for shares. Each new shareholder is subject to the approval of EIC Corporation Ltd. and the Bermuda Monetary Authority.
• SHARE PURCHASES GENERATE INSURANCE CAPACITY:
  Each preference share carries a capacity entitlement of 37.5 times its share price of $50.
  Insurance Capacity
  • Preference shareholders are entitled to purchase insurance from Exporters equal to 37.5 times their shareholding. Thus, an investment of $320,000 provides $12,000,000 of insurance capacity.
  • The number of shares required can be calculated by dividing the policy’s Limit of Liability by 37.5 and dividing again by the cost per share of $50.
  • There is no upper limit on the number of preference shares a member can own.
  • The capacity represented by Series B Preference Shares can be reused for other transactions or for the renewal of the policy when the first policy expires. The shares can be sold to others, subject to the approval of EIC's Board of Directors. Additional shares can be acquired at any time.
• RISKS COVERED BY 'Exporters Insurance Company' POLICIES:
  Subject to policy terms and conditions, Exporters' policies cover the following risks:
  • Nonpayment Risks -- Commercial and political causes; short, medium and long term credits.
  • Collateral Deprivation Risks -- Asset Repossession and Deprivation, Political Violence.
  • Contract Frustration Risks -- Including Wrongful Calling of Guarantees, Non-Delivery.
  • Investment Risks -- Inconvertibility, Expropriation, War, and other Political Violence.
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• TYPES OF TRANSACTIONS INSURED BY 'Exporters Insurance Company':
  
  • Documentary credits (letters of credit, confirmations, acceptances)
  • Promissory notes, drafts, open account
  • Pre-export financings
  • Factoring or accounts receivable financings
  • Forfaiting transactions
  • Leases (non-payment and collateral deprivation)
  • Foreign direct investments and mobile assets
• ADVANTAGES PROVIDED BY 'Exporters Insurance Company':
  Exporters can insure:
  • Tenors out to 10 years or longer (both credit & political risk)
  • Private buyer credits
  • Multi-sourced product (no national origin requirements)
  • Sales to military buyers (non-lethal products)
  • Irregular credit terms
  • Pre-delivery risks
  • Downpayment financings on transactions involving official Export Credit Agencies
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• ACTUAL RISK BY 'Exporters Insurance Company' RETAINED:
  Exporters reinsures a significant percentage of each risk it underwrites.
  On a policy with a limit of $60,000,000, Exporters has a net retention of $4,980,000 per risk. Exporters has both quota share and excess reinsurance agreements with seventeen world-class reinsurers, all with a credit rating of "A-" or better. Exporters' longest standing reinsurer is Asset Guaranty Insurance Company.
• ADVANTAGES OF BEING A GROUP CAPTIVE:
  
  • Greater vested interest by shareholders in well-being of insurer
  • Greater portfolio diversity by industry, nationality and market orientation
  • More emphasis by policyholders towards risk management than risk shedding
  • Better leverage of each member's capital
  • Better production of risk information/intelligence---working together to minimize losses
  • Greater deductibility of premiums
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• ADVANTAGES BY 'Exporters Insurance Company' PROVIDED TO ITS SHAREHOLDERS:
  
  • Short, medium and long term coverage
  • Commercial and political risk coverage in one policy
  • Whole turnover, regional or single buyer cover
  • Specialized programs for commercial banks, covering documentary credits, forfaiting and pre-export financing
  • Straightforward and uncomplicated policy wordings
  • Assignability of policy proceeds for financing purposes
  • The complete range of export credit and political risk insurance covers, including those for trade, investment, and contracts
• 'Exporters Insurance Company' ACCEPTED SUBMISSIONS FROM NON-SHAREHOLDERS:
  Exporters encourages non-shareholders to submit proposals for consideration. By either declining a risk or responding positively with a non-binding indication of terms, Exporters gives the non-shareholder a good idea of the types of transactions it insures, its pricing and other terms of coverage. It also demonstrates the quick response time offered by Exporters.

Links ECA's:
CESCE COFACE COSEC DUCROIRE EKF ECGD EDC EKN ERG EXIM EXPORTERS FINNVERA GERLING-NCM GIEK HERMES HKECIC JBIC KEIC MIGA OeKB SACE