Political Risk 
cover

Political Risk cover on assets

Political Risk Insurance covers investors who buy assets abroad or set up production or distribution operations overseas. It complements property insurance and provides compensation for :

• balance sheet losses linked to infringements of property rights by local public authorities (confiscation, nationalisation, requisition, selective discrimination, withdrawal of licences, etc.) or by public authorities in the investor's country (forced divestiture)
• damage to property caused by acts of war, terrorism, strikes, riots, insurrections, popular movements, revolutions, etc.
• financial losses arising from the inability to convert dividends (or other financial flows) paid by the local subsidiary to the parent company.

Political Risk cover on export contracts

Political Risk Insurance is designed for companies that enter into significant one-off export contracts and important production costs, often over long periods, and which therefore entail a major financial risk for the company. They cover the risks of contract frustration, non-payment of receivables and unfair calls on bonds for one-off contracts with public-sector entities and private-sector customers. Loans set up to finance these export contracts can also be insured, often in conjunction with credit institutions.

The main causes of loss are as follows:

• Financial failure of the public or private buyer
• Non-transfer or inconvertibility of local currency
• Actions or omissions by the foreign government
• Laws, orders or decrees issued by local public authorities
• Situations of war and civil unrest
• Default/abuse by the public buyer

A vast insurance market

The insurances negotiated by AU Group are underwritten by private insurers, as an alternative to the public insurance offered by Export Credit Agencies.

The policies, often organised on a co-insurance basis, are underwritten by a variety of insurers:

• Credit insurance companies
• Property and casualty insurance companies
• Lloyd's syndicates
• Managing General Agencies

Insurers may be located in the European Union, the United Kingdom, the United States, Asia or even other countries, in order to satisfy policyholders from all over the world.
Cover periods range from 12 months to 7 years, and may extend beyond this for specific applications such as project finance or sovereign loans.

Optimised coverages thanks to the expertise of a specialised broker

AU Group is at your service to innovate and adapt policy wordings to specific risks and contexts.
With the help of our international network of experts, we can also place risks for clients worldwide with local insurers.