AU Group
Structured Credit & Political Risk

Securing your contracts and investments internationally

Current geopolitical and economic developments demonstrate an increase in political risks, both in emerging economies and in developed countries. Political instability, currency shortages, governmental or legislative changes all constitute threats to companies operating abroad.

Political Risk covers are designed to protect your commercial contracts, financing and international investments.

Main risks covered

• non-payment of receivables or termination of commercial contracts,
• damage to property and business interruption losses,
• loss of or damage to assets located abroad.

Triggering events for cover

Cover may be triggered by in particular:

• in the event of political violence: war, civil war, terrorism, strikes, riots, popular uprisings, embargoes;
• in the event of government actions: expropriation, nationalisation, failure to honour contractual or regulatory commitments, blocking or restriction of financial flows.

Optimising credit risk and capital consumption

Banks and financial institutions use structured credit insurance solutions in order to:

• optimise their capital consumption in accordance with Basel Committee requirements,
• reduce their exposures to specific counterparties,
• improve the overall profitability of their transactions.

AU Group’s specialist team designs and negotiates cover solutions for all financial institution activities:

• ordinary trade financing,
• international trade transactions,
• export finance,
• project finance,
• factoring,
• complex structured finance.

Thanks to its international network, AU Group works directly with insurance markets in Europe, the United Kingdom, the United States, Asia, Latin America and the Middle East, and offers structures tailored to financial institutions with significant international exposure.